The financial health of an economy until quite recently would be determined through the sole scrutiny of a few fundamental variables such as interest rates, exchange rates, amongst others. Today, such fundamental phenomenon as the weather, and its effect on doing business, the health of a president, and the number of university graduates, are considered in determining the financial health of an economy. Furthermore, the falling ill of the president in USA say, can cause the Dow Jones in New York to fluctuate substantially, consequently sending ripples of concern through all the stock-markets of the world. On close examination it will be seen that there are no exceptions, and an understanding of what has been at the forefront of management thought, and what is today at the forefront of management thought, will reveal the same universal trend, and thereby reveal the direction and the future of the management world. For the purpose of discussion, the trend and the future of the management world can be considered as two separate issues.
Organizations function within a certain societal framework.
In making decisions on what they will produce, how they will produce it, who they will produce it for, and why they will produce it, they of necessity must consider their competition, their own state, and what the needs of society are. They must consider such high-level variables as interest rates, inflation rates, and exchange rates amongst others, in making an informed decision. In addition, they must consider market-based variables, such as market share, market growth, costs of producing goods, potential sales and others. These variables and associated modes of attention fall under the general province of strategy, an area that has received much attention in recent times. More recently reengineering has grown in importance, and has become the focal point of attention and the arena for the further creation of several companies.