Managing a Business


Managing a Business

Managing a business is no easy task. There are countless issues to see to and various things to take into consideration. Needless to say, there are also various forces or situations, both internally and externally, that will affect decisions and plans. Contemporary management is thus a behavioral management theory which revolves around the fact that there is really no best way of managing a company, as the management will ultimately depend on all of these factors.

Contemporary management is thus a behavioral management theory which revolves around the fact that there is really no best way of managing a company, as the management will ultimately depend on all of these factors.

A business is thus viewed as an open system, which is subjected to influences from the external environment, pressures and issues from within it, and various processes and components, all of which need to be taken into consideration by the manager.

Contemporary management thus is often related to what is referred to as the contingency approach. Basically, the style of management will depend greatly on the context of the situation. There is no way that a manager can adopt a rigid style, or set a plan and expect to stick to it from start to finish. There are inevitably going to be changing circumstances and things that might make that plan change at one point or another. Therefore with a contemporary managerial style, the manager will need to be very flexible and adaptable in order to make things work.

A contemporary management approach also means that the manager will be open to new ideas and approaches, which arise as time goes by. Needless to say, the way companies used to be led and managed dozens of years ago is not the same as how most companies are managed nowadays. There are political, economic, social, environmental and technological factors which come into play and managers will thus need to be open to current and new approaches all the time.

The contemporary management style also relies greatly on the fact that a business is not composed of different departments which work independently of one another. These departments or sections are interrelated and they need to work in conjunction to one another to derive the best results for the organization. Together they will produce a unified whole.

Apart from this, it is also important to understand that a business is ultimately an open system, that is, one that ends up interacting with its environment. This takes place in various ways. From the fact that employees come from the job market to the relationships with wholesalers, suppliers, distributors, and retailers, as well as government regulators, and ultimately, the customer base. Market influences and changes also have a considerable impact on a business. These are all factors that contribute to or have an effect on, the decision-making process and the work of the manager.

Ultimately it is important to realize that each business is different, and each one will be facing diverse situations. As a result, this will lead to the acceptance of the fact that different ways of management will be called for.

As William Richard Scott put it so well, “The best way to organize depends on the nature of the environment to which the organization must relate”. This highlights the importance of being constantly aware of changes in the environmental forces, and to be able and willing to adapt to them accordingly for the benefit of the business and improved organizational outcomes.

A manager using the contemporary approach is thus flexible and adaptable as he/she understands the importance of carefully managing the business while attempting to satisfy internal needs, adapt to external factors and forces, and taking into account all of the pressures or issues which will affect the business in one way or another. There is thus no best way to go about it, but rather an acceptance of the fact that one will need to be open to all circumstances and situations, and adapt decisions and plans accordingly.