Jan 4, 2011

Why do we have to innovate the managemant system ?

HAPPY NEW YEAR to all...May all your wishes come true.

As I have mentioned earlier in my previous article, in the globalization era, the globe is becoming smaller for business market. The pace of changes have become so rapid that it took a different type of firms to be dominant and marked entirely new era of business. Whether we realize it or not, each and every company compete directly or indirectly in global economy market.

The development in telecomunication technologies give us the facilities to get connected to anyone over the world, and also make it easier to transfer money or capital to any countries. The education system creates the generation that have their own will to move further, to own a car, house and have nice happy life. This is the basic need for most of the people now.

In Maslow's hierarchy of needs there is five stage of needs such as Physiological needs, Safety needs, Love and belonging, Esteem and Self-actualization. Maslow's hierarchy of needs is often portrayed in the shape of a pyramid, with the largest and most fundamental levels of needs at the bottom, and the need for self-actualization at the top. Let us think about people in the world, most of them moving towards upper level. Therefore these kind of needs create huge energy to think and work hard. For me these energies are the root for global competition. 

The boundaries of Developed Countries, Developing Countries, Third World Country is getting more fragile. Of course in the sense of economic activities there are clear definition to value each country`s level. However what I meant here is about gap in living standards in each country.In every country the gap between rich and poor getting wider. Even few years ago, China is the biggest labour market for production but now China itself already grown into a giant consumer market.

So no matter we are in Well Developed Countries or Developing Countries, without strategies and tactics to survive in global market we will be eliminated. Most companies even do not know who are their real competitors. Except some excellent companies, most companies are like sailing in dark night without possessing any compass. Therefore in global market we have unspecified large number of people or organization that will become our clients that will give us business chances and competitors that will become threat to our business.

So the point is the "People". No matter what theory we use, dont forget our clients, stock holders, workers, vendors are the "People". Most of people who read this sentence will say [Of course!], but in real business world it is not. In order to keep our existence in market we must create a management system that Synchronize with global market changes that means handling peoples` needs changes. Therefore basic is to understand fundamental of people needs and thoughts.

If I am a worker what I need in order to be happy in my life ?
What is the management system that will make me happy which at the same time having more money and time as well as having quality life with my family? As we all know there is no specific answer to that question.

There is time when some excellent manager or individual with great ideas make companies prosper. However the new era need speedy and multi-dimensional ideas that requires whole system element work as a team for it. Each system elements must have vision and clear mission to keep making profit. It is important to establish a system to make every person in your organization applying their brain (ability) to make companies prosper and in return they will be happy with their salary/bonus and proper holidays. It is a simple thing to say but really difficult to do.   

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