Chapter 1: Managing and organizations
From the 1980’s onwards there has been a significant change in corporate managing. Large-scale operations,
originated from the post-war era, began implementing new, modern digital innovations. The era of
digitalization was born.
An era where so-called digital nomads predominate the markets from their private beach in Portugal,
using only their laptops and a stable internet connection.
An era where multinationals outsource parts of their supply chains to low-cost labor economies,
where local workers have fewer legal rights or protection from their own government, to reduce labor costs
and improve efficiency levels.
And an era in which so-called ‘hard-power’ management gets replaced with modern ‘soft-power’
management, creating the new public management. The new public management’s founders, found their
inspiration in classical micro-economic theories, arguing for a downsized economical influence from the
government and applying private-sector management rules to the administration of the public-sector. New
economic regulations and policies were created, favoring the wealthy, increasing the gap of inequality
between the lower- and upper-classes.
Due to new digital innovations, large media enterprises were able to find new ways to enlarge their
revenues. Offering the attention from the users on their platforms, to a particular advertisement from one of
their clients, generating enormous increases in total profits. The longer these users would scroll throughout
these platforms and thus see the placed advertisements, the more money these platforms would obtain. New
and more efficient ways
The r of obtaining and retaining this attention were found, using ps
est of this summary will be available in the following ychological tricks
inside their algorithms. It was all about keeping the users
pages, you will get these after pur scroll
chase.ing and holding their attention to the
advertisements given. This resulted in so-called digital tribalism, in which certain groups are purposefully
placed in like-minded ‘attention bubbles’.
New digital innovations also made it possible for companies like Uber to expand their businesses
from start-up to an international enterprise, using spot contracts, dramatically reducing the overall
transaction costs and making it easier to assess providers’ contributions. However, this freedom came at a
cost as the feeling of responsibility and accountability for employees, from those who were the managers,
Although the advent of modern globalization has given the world many benefits, there is still a lot to
learn, to discover and to improve.
Bibliography: (Clegg, S. R., Kornberger, M., Pitsis, T. S., & Mount, M. (2019). Managing and
Organizations Paperback with Interactive eBook: An Introduction to Theory and Practice (Fifth edition).
SAGE Publications Ltd.)