Abstract Science Construction’s business is in planning, developing and building road projects. The major of its clients are municipalities, city governments, and other public sector entities. While the bankruptcy rates for these clients is very low, when economic downturns happen, their ability to pay in a timely fashion also suffers. This leads to businesses such as Science Construction needing to take on additional debt and to find creative methods in order to stay afloat during times of recession. Methods such as selling accounts receivables at discounted rates and taking larger lines of credit through banks and other lending institutions are some of the ways organizations can remain viable when their cash inflows have turned into a trickle. Science Construction is asking the Turkish Courts to postpone their bankruptcy proceedings for a year while they attempt to restructure. Through this, suggestions such as forcing shareholders to pay their debt to the organization, gaining credi...
According to Castells (2000), “An information economy is where the productivity and competitiveness of units or agents in the economy (be they firms, regions or nations) depend mainly on their capacity to generate, process, and apply efficiently knowledge-based information. It is also described as an economy where information is both the currency and the product.” With that being said, we can have some understanding about important is the information economy for any firms or companies, because it’s not just about the productivity, but the competitiveness of the units or the agents in the economy. So, the process of collecting and using these informations is more than critical for the managers. It’s also important to notice that, this process has evolved, because we don’t get or obtain the informations the same ways, as we are doing now (due to the computer and internet era).
The new knowledge economy
Globalization and technological advancements have defined a global economy that commodifies information, has blurred borders, and has fundamentally changed the way we communicate, buy, and sell. Information and communication technology are seen as an essential key to economic prosperity. Information and communication technology have enabled new heights of free enterprise. This intersection of free enterprise and information and communication technology has led to the development of the information economy, resulting in rising prosperity on a global scale. The very example to understand this concept is the new knowledge economy, which is defined as, according to (Kenton, 2011), “The knowledge economy is a system of consumption and production that is based on intellectual capital. It typically represents a large component of all economic activity in developed countries. In a knowledge economy, a significant part of a company's value may consist of intangible assets such as the value of its workers' knowledge or intellectual capital.” With that being said, we can have a clear understanding about the new knowledge economy, because we learned from this definition that, the significant part of knowledge is the workers’ knowledge or intellectual capital, so that means that this new knowledge economy has been impacted by all these technologies (when a physical process has been reduced dramatically).
Skills needed for today’s managers in the knowledge economy that weren’t required a decade ago
According to (Doyle, 2018), “The knowledge economy relies primarily on the production, distribution, and use of information and ideas rather than physical or mechanical abilities. Many jobs across industries are part of the knowledge economy.” And he followed by saying “In this economy, the knowledge of its workforce is the greatest value a company has. And with today’s ever-changing technologies, employees need to constantly stay on top of the latest information and skills.” With that being said, I surely say without a doubt that for any manager to successfully achieved the goals assigned in this high demand market, he or she must seriously not just be familiar with IT (Information Technology), but mastered it in somehow, because he or she must be able to use these technologies to face or beat the competition.
As state (Doyle, 2018), “There are certain skills that are considered extremely important in almost every job in the knowledge economy. Generally, the top skills are a mix of soft skills(skills that involve interacting with others) and IT skills. These skills can be combined into hybrid skills, which are a mix of hard and soft skills that can enhance a candidate's competitiveness of a job.”
We can understand from this statement that IT skills are on the top of what today’s managers need in the knowledge economy, because IT have changed the world in any ways, so to be competitive, the managers must take advantage of these technological advancements. However, there are other skills added to the IT skills (like Communicative skills; collaboration skills; project management skills; critical thinking skills, etc.)
- It Skills: As state IGI Global (2019), “IT skills can be defined as the ability to use the software and hardware of an information technology-based device such as a personal computer, laptop, or a tablet. Learn more in: Towards a Multi-Dimensional Model of Digital Competence in Small- and Medium-Sized Enterprises.” With that being said, we can say without a doubt, that knowing that the world we live living now with this IT tools, then it became impossible for any manager to face the competitions without mastering them;
- Communication skills: To attain most goals, the manager must create a compelling presentation to get buy-in for ideas, inspire team members to achieve better results and always find the right words to motivate everyone;
- Collaboration skills: The manager must create a good environment in order to celebrate differences, build rapport, form alliances and negotiate effectively;
- Project Management Skills: According to AMA (2019), “To grasp the scope and objectives of projects, recognize the roles and responsibilities of others, and use PM tools to stay on track and become an effective member of a cross-functional team.”
- Critical Thinking Skills: Unless in the past, when most managers were pretty much focused on relaying on the textbook, nowadays that’s not enough, because they need thinking and even think hard, by always being creative and innovate. Thinking is just not required now, but it is critical, because we live in the global market, which means the competition is high, so only the ones who always come up with plans and solutions, are the winners in this new market.
Conclusion
Today, it is fair to say that we are living in different economy, because of the advancements of the technologies. In the past things were dictated by the textbooks, which means the managers were doing what they have been told to do from supervisors or bosses, but now with this new economy, they have to use all the tools (Information Technology) and being more creative, in order to survive and beat the competition. As state, (Doyle, 2018), “Knowledge economy is constantly pushing us forward because we are involved in process of learning, communicating and transforming through new ideas, information and technology. Managers are increasingly coming to realize that the continuing education and knowledge improvement of their employees is one of the most effective ways to achieve competitive advantage.”
References
AMA. (2019). Management success skills. Retrieved April 15, 2019, from https://www.amanet.org/resources/success-skills/management/
Castells, M. (2000). The information age (2nd ed.). Malden, MA, United States: Blackwell.
Doyle, A. (2018, July 13). What you need to succeed in the knowledge economy. Retrieved from https://www.thebalancecareers.com/what-you-need-to-succeed-in-the-knowledge-economy-4172293
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