Discover the keys to business success by understanding and applying the latest trends in management. Learn about the fundamental importance of management for companies and the new developments that are shaping the business landscape.
Administration, the backbone of any company, is necessary to manage resources and meet defined goals. It is a fundamental activity that allows for optimizing the use of resources, improving efficiency and effectiveness, reducing risks and costs, increasing competitiveness and innovation, and meeting the needs and expectations of customers and stakeholders —individuals or organizations involved with a company—.
In a constantly evolving business world, management is the guide that leads organizations to sustainable success . Therefore, it is necessary to be clear that it is not a static science, but rather it is in constant evolution and adaptation to the changes and challenges posed by the business environment, which is characterized by being dynamic, complex, uncertain and globalized.
This is how administrators and administration students must know and apply the current trends in the area, considered as the new methodologies that have been developed to respond to the demands and opportunities of the market, society and technology.
What are the current administrative trends?
Current management trends are a series of new practices that have emerged to improve the management and operation of organizations, based on the challenges and developments of the business environment . Below are seven management trends that have managed to have a great impact:
Management by objectives. This involves establishing specific, measurable, attainable, relevant and time-bound (SMART) objectives so that each area and level of the organization are aligned with the general objectives, and that allow for performance evaluation and feedback.
Talent-focused leadership. Successful companies recognize that cp numbers talent is their most valuable asset. New management trends lean toward developing leadership skills that foster talent retention and the creation of cohesive and motivated teams.
Contingency theory. This model presents an approach that maintains that there is no single, optimal way to manage an organization, but that the dynamics depend on the characteristics and circumstances of each situation, which requires constant adaptation and flexibility.
Business process reengineering. This technique consists of radically redesigning an organization's business processes in order to improve its efficiency, quality, productivity and competitiveness by eliminating activities that do not add value and incorporating information technology.
Technology as an ally. The integration of emerging technologies, such as artificial intelligence and data analysis, has revolutionized the way decisions are made. The ability to process large amounts of information in real time allows for more agile and accurate decision-making.
Virtual approach. The use of information and communication technologies allows business activities to be carried out remotely, without the need for a physical location, which allows for reduced costs, increased flexibility, market expansion and improved customer and employee satisfaction.
Sustainability and social responsibility. These are two crucial components for strategic decision-making. Companies that adopt sustainable practices not only contribute to the well-being of the planet, but also strengthen their reputation and attractiveness to consumers.
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What is the importance of administration in companies?
Management is not simply an operational function within a company, but is necessary to guide the organization towards achieving its strategic objectives. In this way, a manager's ability is put to the test by articulating a vision, motivating teams, and making informed decisions. Thus, the effectiveness of management directly translates into a company's productivity, efficiency, and adaptability to market challenges .
Peter Drucker , considered the father of modern management, states in his book The Practice of Management (1954) that "management is the specific and distinctive function of business, which makes it possible for institutions to serve human purposes and contribute to the welfare of society." Thus, Drucker highlights the role of management as an activity that not only seeks economic benefit, but also the social and human impact of companies .
Companies with strong management outperform their competitors in terms of profitability and long-term sustainability. Effective management fosters a positive work environment and ensures strategic alignment at all levels of the organization. In this regard, business management is important for several reasons, including the following:
It establishes the vision, mission, values, objectives and clear and coherent strategies for the organization, which guide its direction and purpose.