What are the changing dimensions of business environment during 21st century
Business during the 21st century will be totally
different from what is seen today. As we step into the next century we will
observe important changes in business.
Large organizations, with tens of
thousands of employees will vanish. Huge companies will be found only in books
on corporate history. In the 21st century we will find millions of
one- and two-persons bands mama/ papa companies involve in business of sharing,
gaining, and creating knowledge. There is enough to support this now. The most
power full organization is no longer the biggest. HAL, HMT, BEL, and BEML are
no more talked about now. In their place are Infosys and VeriFone, both
recently set up in Bangalore.
Business during the 21st
century will be knowledge based. Manufacturing processes will become highly
complex, jobs become intellectual and employees become intelligent. Brain power
and not brawn power will be in great demand. GKW, a Bangalore based organization
deals essentially with metal stamping. With little knowledge to boast of, the
company is almost on its last journey. So is the case with binny small
businesses dealing in electronics and information technology have proliferated
in street of Bangalore. Started a couple of years back, most of these firms are
doing well financially. The balance sheet of the corporation of the 12st
century will include and asset that does not exist today the knowledge based of
the organization. It is not clear how knowledge will be valued in terms of
money. But it must be valued just as good will is assigned monetary value.
Tomorrow’s manager needs not
spend his time on file pushing and paper-shuffling. Information technology will
take care of most of that work. It makes good sense to make use of networked
computers to handle information. Hardly a weak pass by without news of hardware
engines that are cheaper and faster. Accompaniment is provided is by the
awesome availability of intelligent software that is becoming easier to use and
cheaper to buy and install. Thanks to this revolution in information
technology, papers need not sit on desks, for days on end, aviating action.
Electronic mail makes it possible to send and receive information and
decisions, instantaneously and at ridiculously low cost. Distance, time zones
and the availability of people – the triad of decision delay has been wiped out
for ever by E-mail.
Organization will become flat.
Eight to twelve organizational layers will be replaced by two or three. Linear
relationship with boss and manager and authority flowing downwards and
obedience upwards will disappear. In the 21st century, the term boss and
manager will be enshrined in corporate museums as artifacts from a curious
past. Organization will resemble orchestras. An orchestra has two levels of
management-the conductor and the rest of the crew. The conductor is not an
expert on every single instrument; but he is responsible for the overall
performance of the orchestra. He ensures that everyone plays to the same score.
The conductor of the orchestra. Is, therefore, a facilitator, certainly not a
manager who tells subordinates what to do. Manager has thus to learn to play
second fiddle.
Employees will have no definite
jobs in the 21st century. Most of the jobs will last for two to five
years. Real growth will come from frequent changes of jobs and
responsibilities, the acquisition of new skill, and the ability to put those
skills to use in entirely new circumstances. An employee will find himself in a
team involved in a project that has a definite beginning and a definite end.
When the project over, the team will be disbanded and the members will look for
new projects. There will not be definite job descriptions and fixed salaries.
Remuneration will depend on one’s contribution to the organization.