Management and Management Science towards the 21st Century
In the process of the development of human society, the information revolution is like a surging wave, reshaping the face of the world with an irresistible force. It has not only brought about a earth - shattering change in the field of science and technology, but also triggered a series of fundamental changes in the field of management and management science. Looking forward to the 21st century, management and management science present many remarkable development trends, which will profoundly influence the future direction of organizations and enterprises.
The profound impact of the information revolution on management transformation
The information revolution that began half a century ago is still developing at an astonishingly rapid pace to this day. Nowadays, computers have entered millions of households and become an indispensable part of people's lives. The popularization of the Internet has made the spread of information reach every corner, closely connecting the whole world. Moreover, the trend of integrating telephones, televisions, and computers is approaching, indicating a further deepening of the information age. It is foreseeable that in the 21st century, the information revolution will still be the core driving force for economic and social development. The information revolution is not only a technological innovation but also a profound industrial revolution. Like an invisible giant hand, it promotes changes in the management field, bringing about the following four major changes.
Strengthen management functions
In the early days, computers only played the role of auxiliary tools in management. However, with the vigorous development of modern information networks (Internet/Intranet/Extranet), information networks have transformed from mere tools into strategic resources for management and become an indispensable and important part of the management system. The role of information networks is not only limited to improving management efficiency and reducing management costs. More importantly, it comprehensively enhances management functions by promoting the scientificization and democratization of management. It no longer passively adapts to the original management business processes but actively promotes the optimization and reorganization of management business processes and organically integrates various interrelated management functions, thus bringing about a brand - new look to management work.
Taking Electronic Data Interchange (EDI) as an example, it is hailed as a model of the structural business revolution. EDI integrates all aspects of the circulation of vouchers and documents in business activities. Whether it is the vertical process of material procurement, product manufacturing, warehousing and ex - warehousing, sales and delivery, or the horizontal business activities such as finance, insurance, transportation, and taxation, they are closely integrated through the network transmission and automatic processing of standardized business documents. This integration breaks down the barriers of traditional business processes, enables rapid information transfer and efficient processing, and greatly improves the efficiency and accuracy of business activities.
On the other hand, e-commerce (EC), which is developing in the direction of "Extensible Markup Language" (XML), connects various links such as supply, production, sales, customers, and banks into a complete supply and sales chain, realizing a "one-stop" network service. The emergence of EC has provided enterprises with a brand - new business model, enabling them to respond more flexibly to market changes and enhance their market competitiveness.
Change the management organization
The information revolution has completely changed the way of information transmission through the criss - cross information network. The traditional hierarchical (graded) information transmission mode is gradually being replaced by the horizontal (free) mode. Correspondingly, the management organizational structure is also changing from the spire - shaped "pyramid" type to the flat rectangular network type. In the traditional "pyramid" structure, the middle - level organizations undertake the important responsibility of relaying information upwards and downwards. However, in the era of the information network, the role of such middle - level organizations is gradually being weakened and may even disappear. The leading units, the executive units, and between the leading units and the executive units can directly communicate with each other, making information transmission faster and more accurate.
In this new type of management organizational structure, not only can the leading unit make decisions, but the executing unit can also make quick decisions based on real - time situations. This enables the organization to respond more flexibly to changes in the external environment and improves the organization's adaptability. In today's society, the objective environment changes frequently and drastically. Traditional management organizations with overly detailed division of labor and mutual isolation have difficulty meeting the needs of development. On the contrary, integrating inter - related management organizations has become an irresistible trend. A flexible and adaptable virtual organization has emerged as the times require. The virtual organization breaks through the tangible boundaries of the organizational structure. It can leverage external forces and resources to achieve optimal allocation of resources. It can be predicted that the virtual organization will become an important form of organizational management in the 21st century.
Improve management methods
Management methods are important means for management subjects to fulfill management functions, which cover multiple aspects such as principles, ways, tools, and means. The rapid development of information technology has not only innovated the application of traditional information theory in management, rejuvenating the Management Information System (MIS) that emerged in the 1970s, but also created a series of brand - new management methods, such as artificial intelligence methods and virtual technology.
With the continuous development of the information network, governments and enterprises are also actively innovating management methods. In terms of government management, more and more attention will be paid to major cross - departmental and cross - regional work, which is related to the overall situation of social and economic development. By integrating resources from all parties and strengthening collaborative cooperation, the government has improved the efficiency and effectiveness of management. In terms of enterprise management, more emphasis is placed on employee training and learning. Enterprises encourage employees to engage in self - learning and collective learning to establish common goals for employees and coordinate the overall actions of employees. This transformation of management methods helps to improve the quality and capabilities of employees and enhance the cohesion and competitiveness of enterprises.
Innovate management ideas
For centuries, there have been numerous management schools and an endless stream of management concepts. However, the emerging information revolution, like a storm, has had a huge impact on traditional management ideas. Under the influence of the information revolution, management ideas have gradually evolved from materialism to humanism, upgraded from mainly scientific and rational management to mainly humanistic value management, and developed from mainly internal management to a combination of internal and external management with external management as the main focus.
This new type of management ideology emphasizes giving full play to the knowledge, experience, skills, abilities, talents and aspirations of the team, encouraging people to show initiative and creativity, and jointly creating the future through collaboration and cooperation. The newly revised and published *Fifth Generation Management* is a representative work embodying this management ideology. The author of this book divides management into five generations. From the second generation to the fifth generation, they are all distinguished according to the development stages of computers. The author emphasizes using new "work concepts" and "time concepts" to negate the management concepts of industrial civilization, abandoning the outdated hierarchical management, and jointly creating wealth by establishing virtual organizations, dynamic team collaboration and knowledge networking.
The development trends of future management
The development of innovation management
Innovation management has three interrelated meanings: I. The management of innovation activities; II. Innovation in management; III. Innovative management. Here, we focus on innovative management. The prerequisite and result of innovative management must be management innovation, and its management content also covers the management of innovation.
Different from conservative management, innovative management integrates innovation throughout the entire management process. It requires management to be adjusted in a timely manner with changes in the environment such as technology and the market to adapt to the constantly changing external environment. Meanwhile, innovative management requires the entire organization and its members to have a sense of innovation and innovation ability, and take innovation as the core of organizational activities.
Innovation is an inexhaustible driving force for the prosperity of a country and a key factor for an enterprise to win the competition and maintain its competitive edge. In the future market competition, innovation management will become the foundation for the survival and development of organizations (including enterprises). Innovation management helps enterprises achieve comprehensive innovation, transforming innovation activities from single-item innovation to comprehensive innovation and developing from individual innovation to group innovation.
The rise of risk management
With the rapid rise of high technology and its industries, as well as the global expansion of the market, finance, and economy, the number of uncertain factors is increasing day by day. Due to the incomplete and asymmetric distribution of information, risks are also increasing. Against this backdrop, people have to pay more attention to risk factors, enhance risk awareness, and strengthen risk management in management activities.
In risk management, it is far from enough to merely take remedial measures after the event. We should strengthen the monitoring and prediction of risks, focus on prevention, control risks to the minimum extent, and reduce the possible losses and impacts caused by risks. Specifically, we need to conduct in - depth analysis of the factors contributing to risks, accurately predict the timing of risks, and actively take corresponding preventive countermeasures, such as avoiding risks, transferring risks, diversifying risks, and mitigating risks. At the same time, we should be prepared to bear risks.
Risk management will become an indispensable and important part of future management. In order to conduct risk management effectively, we need to attach importance to credit management. Credit management is the prerequisite for risk management. In a market economy, credit and reputation are important foundations for the survival and development of enterprises. Enterprises should understand and master the credit status of suppliers, customers, and partners, and evaluate and grade their own credit. In economically developed countries such as the United States, there are already information service enterprises that specialize in providing corporate credit information, such as Dun & Bradstreet, which has a history of more than 120 years. These enterprises provide strong support for the credit management of enterprises.
Popularization of information management
With the wide application of information technology and the in - depth development of information resources, management informatization is constantly developing in terms of both breadth and depth, and has entered a new stage of comprehensive informatization of management activities and business activities. The new development of management informatization further promotes the popularization and improvement of information management, enabling information management to occupy an increasingly important position in the entire management.
Information management has penetrated every aspect of various management activities. Whether it is government management or enterprise management, it cannot do without the support of information management. It can be said that without information management, effective management cannot be achieved. It is worth noting that information management is showing a development trend of evolving towards knowledge management. Knowledge management will pay more attention to the creation, dissemination and application of knowledge, and improve the competitiveness of organizations through knowledge sharing and innovation.
The emergence of sustainable development management
Sustainable development is a brand - new development concept that emerged in the early 1980s. It emphasizes that in the context of scarce resources and limited environment, in order to achieve development, we must ensure both intra - generational equity and inter - generational equity and avoid unsustainable global development.
In future management, governments, enterprises, and the public should all abide by the principle of sustainable development, formulate and implement sustainable development strategies, and integrate them throughout the entire management activities. The society's requirements for enterprises are also changing. Enterprises should no longer only pursue economic benefits but also assume the social responsibility of conserving resources, protecting, and beautifying the environment. In management theories and methods, the harmony theory, which is the theory and its application that studies the amicable, collaborative, and coordinated relationships within and outside various organizations and in the process of activities, will receive more attention and emphasis.
Transformation from mainly relying on hard management to mainly relying on soft management
Management is essentially the management of people. The subject of management is people. Although the object of management includes both people and things, the management of things ultimately depends on the management of people. Therefore, the object of management is mainly a matter of people.
The ancient management ideas in our country attach great importance to the crucial role of people in management. While the modern foreign management ideas are closely related to industrial civilization. From Taylor's scientific management based on the assumption of "economic man" at the beginning of this century, to the behavioral management of Mayo and others based on the assumption of "social man" after the 1930s, then to the human - centered management of Maslow and others based on the assumption of "self - actualizing man" in the 1950s, and the modern cultural management that has emerged since the 1980s, which emphasizes the corporate culture and corporate image of self - transcendence, the history of management development shows an obvious trend of transformation from rational scientific management, that is, the "hard" management of materialism, to irrational humanistic management, that is, the "soft" management of humanism.
The development of "soft" management is based on the existence of "hard" management, and "hard" management in turn requires the improvement and guidance of "soft" management. "Hard" management mainly reflects the Western management ideology that advocates rationality and respects science, and we should learn from its advanced experience. On the other hand, "soft" management contains the ancient Chinese management ideology of "harmony between man and nature" and harmonious interpersonal relationships, which we should inherit and carry forward. On the basis of the combination of Chinese and Western management, further improving the Chinese-style management that combines and integrates both "soft" and "hard" elements with "soft" management as the mainstay is the historical mission entrusted to China's management circle by the current era.
III. Knowledge management is becoming increasingly important
In today's era, the importance of knowledge management is increasing day by day. However, to date, people have not reached a unified understanding of knowledge management. There are different scopes for the understanding of knowledge management. The broadest view holds that knowledge management is equivalent to the management in the knowledge era. From this perspective, knowledge management encompasses management activities at all levels of society, economy, and organizations in the knowledge era, and it is a comprehensive and macroscopic management concept. It permeates every corner of the knowledge era, and both the operation of enterprises and the national development strategies cannot do without the support of knowledge management.
The narrowest understanding confines knowledge management to the management of knowledge assets (or intellectual capital). The knowledge assets here include a company's patents, trademarks, goodwill, as well as the professional skills and experience of its employees. This understanding focuses on the specific knowledge resources within an organization, emphasizing the effective identification, evaluation, protection, and utilization of these resources to enhance the organization's competitiveness.
Between these two extreme understandings, there are two other kinds of perspectives. One is the management of knowledge, which focuses on managing the processes such as the generation, dissemination, storage and application of knowledge. For example, establishing a knowledge-sharing platform to promote the flow and spread of knowledge within the organization; classifying and organizing knowledge for better storage and retrieval. The other is management with knowledge, which emphasizes using knowledge as a management tool to guide an organization's decision-making, planning and operation. Through the analysis and application of knowledge, an organization can formulate strategies in a more scientific way and improve management efficiency.
Despite the differences in people's understanding of knowledge management, there are two points of consensus. On the one hand, as an important production factor, knowledge plays an increasingly prominent role in economic development, so it needs to be effectively managed. In today's knowledge-based economy era, knowledge has become the core driving force for economic growth. The innovation and application of knowledge can improve production efficiency, create new products and services, and thus drive economic development. On the other hand, there is a general recognition that the importance of knowledge management is constantly increasing. With the rapid development of technology and the intensification of market competition, organizations need to continuously improve their knowledge management capabilities to adapt to the changing environment and maintain their competitive edge.
(I) Evolution from information management to knowledge management
Knowledge management is an extension and development of information management. The goal of information management is to transform data into information and make the information serve the goals set by the organization. In the development process of information management, it has gone through stages such as document management, computer management, information resource management, and competitive intelligence management. Document management mainly focuses on the collection, organization, and preservation of paper documents; computer management uses computer technology to achieve digital storage and retrieval of information; information resource management emphasizes the comprehensive planning and effective utilization of information resources; competitive intelligence management focuses on collecting and analyzing information about competitors to provide support for organizational decision - making.
Knowledge management goes a step further. It is committed to transforming information into knowledge and using knowledge to enhance the adaptability and innovation ability of a specific organization. Knowledge management not only focuses on the acquisition and storage of information but also emphasizes the processing and transformation of information, as well as the sharing and application of knowledge. It requires connecting information with information, information with activities, and information with people, and realizing the sharing of information and knowledge (including explicit knowledge and tacit knowledge) in the interactive process of interpersonal communication. Explicit knowledge refers to the knowledge that can be expressed and disseminated in forms such as words and charts, while tacit knowledge refers to the experience and skills that exist in people's minds and are difficult to express in words. Through knowledge management, an organization can stimulate the collective wisdom and promote the generation of innovation, thus gaining an advantage in the fierce market competition.
(II) The role of knowledge management is to cultivate collective creativity
In the development process of production factors, from land, labor, and capital to knowledge, knowledge, as a factor, has unique characteristics. Different from other production factors, knowledge not only has value in itself but can also mobilize other factors. Knowledge can penetrate into various factors such as the object of labor, labor tools, labor force, as well as science and technology, education, etc., and its role continues to be strengthened over time.
As an intangible asset, knowledge is increasingly highlighting its importance. Knowledge assets or intellectual capital such as prestige, goodwill, trademarks, patents, registered designs, contact networks, and the experience and skills of employees all need to be evaluated and managed. In today's society, the number of knowledge-intensive products, enterprises, industries, and economies is not only constantly increasing, but they are also gradually showing their relative advantages. The future rise and fall of a country largely depend on the success of its development of "brain-based" industries. "Brain-based" industries, with knowledge and technology at their core, feature high added value, high innovation, and low energy consumption, and can promote the sustainable development of a country's economy.
The growth of knowledge depends on continuous learning, and learning based on practice is particularly crucial. In traditional power-based organizations, activities are mainly organized and implemented through power. However, with the development of the knowledge economy, this organizational model has gradually been supplemented and partially replaced by the learning organization. The learning organization emphasizes promoting organizational development through learning and encourages employees to continuously acquire new knowledge and skills. Knowledge management is an important characteristic of the learning organization, and its core role lies in cultivating and improving the creativity of individuals and collectives within the organization. Through knowledge management, the organization can create an environment conducive to knowledge sharing and innovation, stimulate employees' innovative thinking, and improve the organization's innovation ability.
(III) The goal of knowledge management is to promote innovation
Innovation is an effective combination of technological and economic behaviors. It is not only reflected in technological improvements but also generates economic benefits. Innovation mainly includes technological innovation, management innovation, and institutional innovation. Institutional innovation is the prerequisite for innovation, providing a good institutional environment and policy support for technological innovation and management innovation. Technological innovation is the driving force of innovation, capable of promoting the upgrading of products and services and improving production efficiency. Management innovation is the guarantee of innovation, which can optimize an organization's management processes, improve management efficiency, and facilitate the implementation of technological innovation and institutional innovation.
Taking enterprises as an example, the knowledge innovation process of an enterprise is the process of transforming a good idea into marketable commodity production. After an enterprise successfully launches innovative products into the market and obtains high returns, it can use these returns to further conduct research and development, produce and sell more and better commodities, thereby earning more profits. This cyclical process continuously promotes the development and growth of the enterprise.
In today's era, it is crucial to establish and develop a national innovation system. However, an innovation system can truly be dynamic only when enterprises serve as the main body. Enterprises are the main players in the market. They directly face market demands and can keenly capture market opportunities. The goal of knowledge management is to promote the connections within enterprises, between enterprises, between enterprises and customers, and between enterprises and institutions of higher learning and research units, strengthen knowledge networking, accelerate knowledge flow, and thus drive the occurrence of innovation. Through knowledge management, enterprises can integrate resources from various parties, share knowledge and information, and improve the efficiency and success rate of innovation.
IV. Management science is in the process of transformation
Management and technology are two important wheels driving economic development and social progress. In China, technology is relatively backward, and the management level also needs to be improved. In this situation, it is particularly urgent to improve management. As a discipline that studies the objective laws in management, management science originates from management practice and in turn guides management practice. When discussing management issues in the 21st century, it is difficult to understand and solve these problems thoroughly without considering the transformation of management science.
(I) Management science is the path to national prosperity
Management science lies at the intersection of natural science and social science and is an important breakthrough point for the cross - integration of natural science and social science. The importance of management science is closely linked not only to the importance of science but also to the importance of management. The development of science provides theoretical and methodological support for management, while effective management can promote the application and popularization of science and technology.
Comrade Zhu Rongji pointed out: "Now it's time to vigorously advocate improving China's management and developing China's management science. The Party Central Committee has put forward the policy of rejuvenating the country through science and education. This science includes both natural science and social science, and of course, management science as well. At present, it's really necessary to emphasize that management science and management education are also ways to rejuvenate the country." This fully demonstrates the important position of management science in the country's development. The development of management science can improve the management level of enterprises, enhance their competitiveness and promote economic development. Meanwhile, it can also improve the management efficiency of the government, optimize the allocation of social resources and promote social progress.
(II) New Developments in Management Theories and Management Methods
According to the research report on the development strategy of management science disciplines compiled by the National Natural Science Foundation of China, management science can be divided into basic theoretical disciplines, technical and methodological disciplines, and practical applied disciplines. In the past more than a decade, these three types of management disciplines have achieved remarkable development in China. At present, there are more than 200 institutions of higher learning in China that have established management schools, which provides a good platform for the research of management science and the cultivation of talents.
From the perspective of management theories and methods, remarkable progress has been made in integrating management ideas and research results from ancient and modern times, both at home and abroad, in recent years. For example, in the comparative study of Eastern and Western management, some people have proposed that there are differences among the management models of China, Japan, and the United States. The Chinese management model is characterized by "emotion" and emphasizes interpersonal relationships and emotional communication; the Japanese management model centers around "reason" and emphasizes the execution of rationality and systems; the American management model focuses on "law" and relies on perfect laws, regulations, and systems to manage enterprises.
In terms of the combination of traditional Eastern culture and modern management, some people believe that the essential attribute of Eastern management culture is "putting people first and morality first." This management concept emphasizes respecting the individuality and needs of employees, focusing on the guidance of morality and ethics, and combining traditional culture with modern management concepts, thus providing new ideas for the development of enterprises.
Regarding the issue of integrated management, some people emphasize that it is a brand - new management concept and method. Its core is to use the concept of integration to guide the management behavior of enterprises. By integrating various resources of the enterprise, it can achieve strategic flexibility, market internalization, technological clustering, organizational networking, information efficiency, and cultural integration. Integrated management can enhance the overall competitiveness of enterprises and enable them to adapt to the complex and ever - changing market environment.
As the management environment in the 21st century is more complex, intricate, and ever - changing, the development of management science needs to serve the cultivation and training of a new type of management class. This new type of management class needs to possess interdisciplinary knowledge and skills and be able to handle various complex management problems. Through the efforts of this class, it will then serve to improve and perfect management practices, which will become an inevitable requirement in the new era.
(IV) The great development of management science through cross - integration
The main trend in the development of management science in the 21st century is further intersection and integration. The so - called intersection refers to the interpenetration and intersection of multiple disciplines. The foundation of management science originally includes mathematics, economics, and psychology. These three disciplines penetrate and influence each other in management science. With the development of management science, more and more disciplines are penetrating and intersecting with management science, such as statistics, sociology, engineering technology, decision - making science, systems science, cybernetics science, information science, etc. The famous management scientist Koontz called this phenomenon "the jungle of management theories". The fundamental reason for this multi - disciplinary interpenetration and intersection is the complexity of management problems, which can only be solved by jointly researching with the theories and methods of many disciplines.
The so - called integration refers to the integration of rational management theory and human - oriented management theory, as well as Western management ideas and Eastern management ideas. In the process of integration, different management theories and ideas learn from, absorb and discard each other to achieve a more perfect integration. The emergence of this integration phenomenon is closely related to the need to combine intelligence quotient (IQ) and emotional quotient (EQ) in solving management problems. In a complex management environment, relying solely on rational analysis and decision - making is not enough. Factors such as human emotions, values and interpersonal relationships also need to be considered. Through the integration of different management theories and ideas, it is possible to better cope with complex management problems and improve the effectiveness of management.