Management Models: Opportunities and Challenges for Emerging Company Scalability in Colombia

Management Models: Opportunities and Challenges for Emerging Company Scalability in Colombia

DOI: 10.4018/979-8-3693-2077-8.ch008
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The situation that humanity lives in the face of environmental variables presents a scenario of uncertainty for organizations and their management models (MM). This reality demands a challenging understanding and management for the management of organizations, whatever the type (private or public), economic sector and size. This chapter, which is the result of qualitative and exploratory research, aims to identify opportunities and challenges faced by management models in Colombia in the face of the dynamics generated by environmental variables. The result obtained is produced because of the documentary analysis and review with experts of the main MM implemented in the country in relation to some successful models of international reference. It is concluded that the MM need to strengthen their technological, innovation, value generation, and good use of meta-capabilities that will favor organizational reconversion for emerging companies in Colombia.
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Manrique and colleagues (2020) explain how organizations are perceived around the globe as social systems procuring the attainment of a common goal. Whether it is in our native Colombia, in Canada, America, Brazil, Mexico or the acclaimed Nordic countries, organizations are affected by environment changes and the variables involved in such adjustments. Castañeda (2020) claims that our country’s economic reality is not very promising, with the Colombian peso facing a historic devaluation process, a considerable reduction in royalties derived from non-renewables’ exploration and exploitation, both leading to an ever-increasing cost in imported goods & services. Yes, Colombia’s economic environment is far from being healthy and this takes a toll on most organizations’ profitability (Duarte, 2020).

Now, let us look at the concept of Globalization. According to Kelman and Friedman (2009) globalization is a multidisciplinary process that modifies any country’s given systems and the factors that greatly influence those, particularly affecting the way its economy is forced to trade and forge relationships with other nations’ economies. Globalization is this generation's hallmark, with free flow of markets, capital and products, easier travel, instant connections, and rapid urbanization. Terms and concepts such as dynamism, hyper-competition, strengthening of technology, of knowledge and of innovation encourage new scenarios within Colombia’s economic agenda, aiming to secure a steady economic development and an increase the social welfare.

Vargas (2018) explains that more than ever, leadership and a proper knowledge management are paramount. We are living under a New Normality after the COVID-19 Pandemic and as history has shown us, new realities call for new managerial approaches (p.117).

This chapter aims at identifying the opportunities and challenges that organization management models face by these new dynamics generated under the new normality and faced with a series of environment variables that appear and are difficult to foresee. To do so, we will be revising current management models, conducting a benchmark exercise with internationally accepted and acclaimed management models, aiming at laying a strategic foundation on which the upper echelons can build their new managerial approach and/or their new management models, aligning them with the environmental changes and trials.



Leadership and Management

In accord with Batista and Estupiñan (2018) Management is a comprehensive action on all elements that are involved in the workplace and that are necessary for the fulfillment of the company’s principles (p. 16). On that same note, Mora-Pisco, et al., (2016) explain that the Spanish term for management, “Gestión”, comes from a Latin word: Gestĭo. This Latin vocable refers to the administration of resources, whether within a state or a private institution, to achieve the objectives proposed by their authority (p.153).

Muñoz Dueñas et al., (2015) add to the above by stating that management is the process of coordinating and classifying work procedures in roles, tasks and responsible (p.347). Ramírez-Cardona and Ramírez- Salazar (2016) affirm that management, direction, and administration are all synonymous, and those exercising such functions are considered and called Managers (p. 225).

Thompson and MacMillan (2010) consider that modern leaders must strive to create new Organizational Management Models (OMM) that allow any organization to potentialize its resources and attaining presence in new markets, new horizons, forge new alliances, synergies, cooperations and such, thus generating wealth not only for the organization, but also for society.

In this spirit, organizations must analyze and revamp their OMMs, as explained by Zott and Amit (2010) and claim that all interdependent activities within an organization transcend the company’s mission, therefore their boundaries are always ripe for expansion aiming at maximizing its social benefits (public organizations) or its business productivity (private entities).

Demil and Lecocq (2010) in turn, state that an OMM is the way under which all organizations’ areas and/or departments are articulated in pursue of value creation and value addition, striving for sustainability and business growth. Sánchez Murillo (2006) quotes Drucker when affirming that from the 80s onwards it became Gospel to claim the organization the nucleus of management. Demil and Lecocq (2010) ratify Sánchez, as they explain how on the succeeding decades the OMMs’ established themselves as a focus for research and investigations fueled by the advent of Interned and E-commerce.

Key Terms in this Chapter

IMOS: Innovation model for organizational sustainability.

RISE: Route of innovation sustainability for enterprises.

OMMs: Organizational management models.

MMOM: Model of modernization for organizational management.

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