In an earlier time when the industrial revolution started and till the dawn of the Knowledge economy, companies and organizations had a certain flexibility to carry out their activities. Evolving companies needed to have a Division of Work, Unity of command, Scalar Chain, Centralization, and Stability of Work Tenure amongst others as their Principles of Management.
In those times an organization was required to have a great leader and a strong management, which could do things right.
Globalization and the Knowledge economy have changed the playing field. Globalization ensures that product rationalization is not possible. Local issues need local solutions taking out centralization and bringing in de-centralization. The concept of multi-tasking has eroded the practice of Division of Work. We no longer talk of just vertical growth but lateral growth. Equity (Just Workplace) and Order (Social Order) have given way to ROI and the quarterly balance sheet.
With Digital Technology become central to businesses, Social media, connectivity and communication reducing response time, there is little scope for seeking support from chain of command. Further today’s world is a fast paced one where your product or service could be replicated and provided at a cheaper cost, in a time span which does not allow you to get full value for your intellectual property.
With such challenges do companies need stringent processes which muffle innovation? In such a scenario do companies need managers with the same thought processes? Or do they need a radically new approach with the manager having the ability of an Entrepreneur?
Typically an entrepreneur is understood to be a businessman, a person with the ability to take up an enterprise. He is a leader who can create and market new services or goods. We need today Managers who combine these skills in addition to classical abilities to do right things. The manager with a combination of these skills is the Entrepreneur Manager.
In the current economic scenario managers and management is not enough, we need the entrepreneur manager and entrepreneurship in management.
In the words of Lyndon B Johnson “Doing what’s right isn’t the problem. It is knowing what’s right”