Reading: Lesson 3 - Managing in the Twenty-First Century

1.3.A - Managing in the Twenty-First Century

1. WORKERS

1. The best description of the changing American workforce is diverse. The makeup of the workforce is becoming increasingly diverse based on a number of factors, including age, ethnic background, gender, and education.
   
2. There are some indications that the U.S. workforce will become much younger as baby boomers move into retirement. Other indicators suggest that as people live longer, they will remain in the workforce longer. This may be due to financial need brought on by a longer life span as well as the desire to stay active and involved.
   
3. The U.S. Department of Labor estimates that people over the age of 55 will make up 24 percent of the workforce by 2050 compared to just 19 percent in 2010. The largest component of the workforce will continue to be those between the ages of 25 and 54. 
   

   
   

4. The ethnic composition of the U.S. workforce will change as the proportion of white non-hispanic workers declines to less than 50 percent by 2050. The biggest percentage increase will be Hispanic workers. 
   

   

5. The percentage of women in the workforce increased a great deal in the last three decades of the twentieth century. Men and women will be represented almost equally in the workforce in the future. However, women are increasingly filling important positions in businesses as well as becoming key managers and top executives of many organizations. The total U.S. workforce is anticipated to grow from just over 150 million workers today to 200 million by 2050.
   

   
   

6. Businesses will employ a workforce that is much more educated. Young people continue to enroll in education beyond high school in greater numbers as they recognize the jobs of the future will require advanced education and training. In the next ten years, over 60 percent of the anticipated 50 million job openings in the U.S. will require some education beyond high school. Few options will be available for anyone without a high school diploma, and those jobs will offer little job security and low pay.
   

7. One of the major trends affecting both management and staffing is the pending retirement of the baby boomer population. The baby boomers are a population group born between 1946 and 1964. In 2016, the first baby boomers turned 70 years old. By 2050, the median age baby boomer will be 95 and most baby boomers will be out of the workforce.
   

8. There are projections that by 2020, there will be 55 million job openings in the United States—24 million resulting from newly created jobs and 31 million resulting from openings created by baby boomer retirements. This could create a Projected Changes in the Ethnicity of the U.S. Workforce worker shortage of 5 million employees.
   

9. Older baby boomers are remaining in the workforce for a variety of factors. Some continue to work because of good health. Others are working because of financial need, either because they did not save enough for retirement or because they lost retirement savings in the economic downturn in 2008.
   

10. Baby boomer managers often continue to work while looking for their replacements. Many middle managers and executives are members of the baby boomer generation. These managers and executives need to staff and train others who can eventually move into executive positions. While this may seem like an opportunity for new entrants into the workforce, these new workers will still need the proper education and management skills to plan, organize, staff, lead, and control work.
    

1. Just as the workforce is changing, so is the way work is accomplished. Fewer jobs today require individuals to work on specialized tasks in isolation from other employees. Instead, work is organized around processes or projects where teams of employees collaborate. Technology is quickly reshaping organizations. More work tasks are completed by automated machines or by workers using technology. While many production and service jobs still require physical labor, more jobs are less physically demanding and more intellectually challenging. Jobs require workers to think critically, solve problems, and make decisions.
   
2. Jobs require effective communication and interpersonal skills. Communication often occurs virtually rather than face to face. This requires workers and managers to choose the appropriate technology, learn new procedures, and conduct themselves professionally.
   
3. Business competition has changed as well. Today businesses compete globally rather than just with businesses in the same city or country. Small businesses invested in the latest technologies and linked via the Internet can compete effectively with even the largest businesses. It is common for international businesses to have work locations and employees in many different countries. A small business in one country can partner with businesses in other countries to have an international presence. Managers and employees must be able to work effectively across time zones and country borders. They need to be able to respond to different economic and political systems as well as unique cultural and social needs.
   

3. COMPETITION

1. Business competition is the rivalry among companies for customers. Two aspects of business competition are changing rapidly. One is the location and number of competitors. The other relates to production efficiency.
   
2. Today business competition has no borders. Even the smallest businesses serving a local market can face competition from companies thousands of miles away as customers turn to the Internet to make purchases. E-commerce retail sales in the United States were estimated at $305 billion in 2014. That was an increase of more than 15 percent from the previous year. E-commerce retail sales represented more than 6 percent of total retail sales for 2014. Managers need to understand how competition is changing and how these changes affect their business.
   
3. When it comes to production efficiency, some businesses located outside the United States have an advantage. These companies may have access to a lower- cost workforce and less expensive production and distribution alternatives. Laws, regulations, and financial Why are many businesses facing competition from around the globe? Managing in the Twenty-First Century 19 incentives in other countries also may create advantages for some companies.
   

4. TECHNOLOGY

1. The Internet is a global network that uses the World Wide Web as a standard for applications. The Internet allows different types of devices to communicate with each other. Telecommunications technologies now allow smartphones to connect to websites and email. This is a great benefit for managers because they can stay in touch with their company at all times. But it can also be a burden because managers may feel the need to always be available, even on weekends or vacation.
   
2. Most companies today cannot compete without a website to promote their businesses, communicate with customers, and sell their products and services. In addition to a website, companies are adding social media access and a variety of mobile applications for instant communication and interaction with customers. Companies also use intranets to allow managers and employees to access internal computer systems.
   
3. Access to all of these technologies makes it possible for employees to communicate with each other and with their managers in a virtual environment. Employees no longer need to work at the same physical location or even in a business environment. Internet technology has given rise to the virtual employee, who may work from home, a hotel, or the local coffee shop.
   
4. New technologies also have led to major changes in accessing and using data. Specialized software tracks, analyzes, and reports information to managers. Managers can access information about all aspects of the business. For example, they might want production schedules, sales figures, customer demographics, competitive analyses, or market data. Managers can also access information about individual employee work activities and performance.
   

5. DEVELOPING A MANAGEMENT STRATEGY

1. Effective management cannot be arbitrary. Managers cannot just do what they believe is best based on their own instincts and experience. An effective business has a management strategy that is planned, consistent, and understood. A management strategy is a carefully developed overall approach to leading an organization.
   
2. Determining the best approach to manage an organization can be a complicated procedure. Every business has a unique set of characteristics. It can be large or small, offer goods or services, and operate locally or globally. The management strategy must be appropriate for each business. Resources and the environment in which a business operates affect the way a business is managed. Given all of the characteristics and options, each organization must develop its own management strategy. 
   

   

3. Management will be quite different if the business is small or large, new or old, or operating in one or multiple locations. Managing retail businesses is not the same as managing manufacturing or transportation companies. A service business may need large numbers of personnel, while a computer manufacturer relies more on technology.
   

4. Managers must be prepared to manage the work and the employees doing the work. Different kinds of work require different kinds of management. Managing routine tasks is different from managing work in a stressful and everchanging environment. For example, managing an assembly line is different from managing a hospital emergency room.
   

5. Today’s managers usually work with employees who have different backgrounds and different aspirations. They will manage experienced workers as well as new hires. Some workers are full-time employees, while others are part-time or temporary. Employees in a small company with one location will require different approaches to management than a multinational company with locations in ten countries where employees come from different cultures and speak multiple languages.
   

6. Some industries are highly regulated. Examples include pharmaceuticals, nuclear power, and airlines. Others have fewer restrictions and can operate more freely. Many companies face intense competition from businesses offering similar products or services. The environment for businesses that offer unique products Many companies have facilities, suppliers, and customers all over the world. What are some challenges managers face when operating in an international environment? Managing in the Twenty-First Century 21 and services is much less competitive. An effective management strategy must recognize the nature of competition; be able to effectively respond to any political, legal, and regulatory issues; and demonstrate the level of social responsibility expected by customers and the communities in which the business operates.
   

7. The fourth factor that affects a business’s management strategy involves the characteristics of its management. The management of an organization determines the overall approach and philosophy it will follow. Will it be more traditional, administrative, behavioral, or quality-focused? The levels of management and the numbers of managers in a business affect the approach to management. If the levels and numbers shift up or down, the strategy may need to change. Finally, the management strategy affects the responsibilities of managers. This includes their relationships with non-management employees and their approach to the completion of the five management functions.
   

6. MOVING INTO MANAGEMENT

1. Management is challenging and exciting, but it is also demanding and pressure-filled work. Management is increasingly complex and requires people who are energetic, well prepared, and committed to their company and their career. Regardless of your career goals, you benefit from understanding how businesses manage production, marketing, finance, operations, and other important activities. This is true if you plan to operate a business of your own, move into a top management position in a large company, or work as a valuable and valued employee for a company.
   
2. If you plan to be an entrepreneur or executive, you will need a complete understanding of all phases of business planning and operations. If you expect to become a supervisor or an executive, you must fully grasp how the activities of all departments are coordinated in a smoothly operating business. This same knowledge will help you as an employee in organizations that empower workers to take responsibility for managing their own work and participating in teams. Understanding management principles and practices will help you contribute as an employee or as a manager in any organization.