Actual Problems of Management and Public Administration in Modern Globalization Processes
Ievgen Buriak
Ass. Prof., Professor of Management Department,
Economic and Management Faculty,
Kremenchuk Mykhailo Ostrohradskyi National
University, Kremenchuk, Ukraine
https://orcid.org/0000-0002-8039-004X
Andriy Kalynovskyy
Associate Professor
Foreign trade and customs department,
Institute of Economics and Management,
Lviv Polytechnic National University, Lviv, Ukraine
andrii.o.kalynovskyi@lpnu.ua
https://orcid.org/0000-0001-7927-3033
Maryna Pasko
Associate Professor
Department of Management,
Logistics and Innovation,
Faculty of Management and Marketing,
Simon Kuznets Kharkov National University of Economics,
Kharkiv, Ukraine,
https://orcid.org/0000-0002-2784-4997
Volodymyr Saienko
Professor, Department of Innovation Management,
Faculty of Social Sciences,
Academy of Applied Sciences
Academy of Management and Administration in Opole,
Opole, Poland
https://orcid.org/0000-0003-2736-0017
Tetyana Zavolichna
Associate Professor
Department of Economic Theory,
Management and Administration,
Yuriy Fedkovych Chernivtsi National University,
Chernivtsi, Ukraine
https://orcid.org/0000-0002-7655-1170
Abstract
The purpose of the article is to highlight the impact of globalization factors on the formation of a modern effective management paradigm. The tasks of scientific research are focused on analysing the factors that will contribute to the organization of manageability in institutions of different levels.The study used a mixed method of research, which combines qualitative and quantitative approaches to holistically address current challenges and problems in the field of management in the context of modern globalisation. A total of 70 respondents - managers of large and medium-sized companies - took part in the study. The scientific novelty of the article lies in determining the balance of guidelines that form a management system in the modern socio-cultural space: the principles of fundamental management and the principles of management transformation.It is determined that the main problems are global competition, changes in geopolitical relations, cultural diversity, and certain environmental issues. The conclusions also note that the modern management model is characterized by flexibility and dynamism, which leads to a change in the principles of management and the public sector both in the theoretical and methodological strategic dimension and in the practically oriented operational manifestation. The management paradigm in the global world focuses on the inclusion of innovative elements that are gaining importance in the economic, social, or cultural life of society.
Keywords: Public Administration, Management, Global Economy, Human Capital, Innovation Management.
Introduction
Globalization is not a new phenomenon in the development of modern civilization. For several decades now, the social order has been transforming, focusing on integration vectors. Such realities push all clusters of social activity to acquire a unified content and format. The system of governance of various types and levels, being a rather conservative element, is not at the forefront of civilizational transformations. Nevertheless, quantitative and qualitative changes in economic, social, and cultural life dictate the need for changes in the management paradigm.
The system of public administration, management of large, medium, and small businesses, the public administration sector - all these clusters are gradually transforming, depending on the general socio-cultural requirements of the time and the practical needs of individual spheres of social activity, especially the economic dimension. In the context of globalization, the usual models of governance are being supplemented by so-called governance superstructures - transnational companies, international and interstate economic unions. This creates a kind of imbalance in the management system, as the possibility of unified management principles is lost. Obviously, the model and even the philosophy of managing a multinational company is fundamentally different from managing a small or medium-sized business project. For business efficiency in economic terms, this differentiation is a common and understandable phenomenon. When considering the management paradigm, however, this diversity is a threat to the integrity of the management system.
The research problem is concentrated in the correlation of the principles of the management paradigm with the trends in the global economy. The scientific and economic community is faced with the question of analysing the impact of globalization on the system of management and public administration at different levels of economic and social life. While the management model in large business companies or transnational corporations is fully correlated with the principles promoted by globalization as a socio-cultural phenomenon, for medium or small businesses, globalization trends have brought many inconsistencies, primarily in the management system (both in the practical and economic and in the theoretical and ideological sense).
The focus of the study is to consider the system of management and public administration in modern socio-cultural realities. If we consider the main globalization trends of our time in the field of economy and social policy, we can state that the management system has faced the following challenges:
The purpose of the scientific article is to clarify the level of globalization impact of quantitative (production, organizational, logistical) and qualitative (human) indicators on the content and format of the modern management system. The questions of the study are to identify the factors of the globalization dimension that determine the level of manageability in the socio-economic cluster and form practically oriented guidelines for management and public administration.
Theoretical Framework
In the modern scientific discourse, the problem of management in the context of globalization is relevant and in demand among scholars. Management and public administration define key practice-oriented guidelines for managing human, production, or technological resources. Globalization contributes to the process of unification of management experience, which causes positive sentiments in the cluster of management and public administration. It is noted that innovative information and technological processes only contribute to the organizational design of a new management paradigm.
The involvement of technology and digital space in management systems of various levels and types is of understandable concern to the scientific community.
Reis et al. (2019), analysing the potential introduction of artificial intelligence, note a wide range of new opportunities for implementing a successful management model. However, in addition to the advantages, there are obvious threats associated with the elimination of direct human involvement in the management process. The objectification of managerial activity is a complex and ambiguous issue that should not be equated with positive indicators of the same objectification in the scientific and technological dimension. The loss of the human dimension of the management process will contribute to the result in quantitative terms but may lose the purpose of managerial consciousness (both for managers and subordinates).
Usman et al. (2022) points out the difference in the management of different clusters of economic activity. Human resource management and financial management or production management are of different nature and are implemented in different ways. If we bring this issue to the global level, this differentiation will only increase. This process is a negative manifestation in today's social life. There is a paradoxical situation when the key idea of globalization is the unification of all processes, while at the same time, management processes are becoming significantly differentiated precisely because of globalization movements.
Dahesh et al. (2020) conducted a detailed analysis of the scientific literature on the evolution and dynamics of management and public administration. The peculiarity of this study is the traditional methodological justification of innovative formats of the management system that have been implemented over the past 30 years. For the current study, such a presentation of the material is relevant since the timeframe coincides with the active establishment of globalization processes in international life.
Levchenko et al. (2022) conducted a short-term study (2019-2022) on the economic, social, and technological components of the management paradigm of the globalized world. Such results are relevant for studying the practical consequences of globalization in the management process. Eriksson et al. (2020) emphasize the importance of moving from a fragmented to a coordinated model of public administration. This approach meets the requirements of the times, which are characterized by global transformations.
The current study aims to analyse the existing achievements of scientific discourse on the issue of management and public administration problems in the context of globalization and to determine the prospects for further research on this issue. Among the pressing issues that will determine the content of the globalization problem for the management paradigm in the short term will certainly be the positioning of innovative elements. Informatization, digitalization, and technologization are the most urgent aspects that will affect economic activity directly in real-time.
Bilan et al. (2019) uses the correlation method to align branding principles with macroeconomic indicators. This approach allows identifying problematic issues in the management process at different stages of economic activity. Economic indicators are quite sensitive to management activities and make it possible to track their effectiveness virtually online, unlike social or cultural processes, where results are somewhat inertial and delayed. The format of management activities in the context of globalization in some way also contributes to these delayed results, which allows for additional time to reboot the management system or its individual elements (human, technological, organizational).
The task of the scientific community is to develop effective guidelines that will facilitate the adaptation of the management system to the socio-cultural conditions of modern civilizational progress. Among the tools designed to help public sector managers and executives, priority is given to innovative technologies and information and digital systems that not only simplify work, increasing productivity but also meet the worldview principles of our time – self-organization, multiculturalism, interdisciplinarity.
Methodology
Participants
The target participants are 70 executives from large and medium-sized companies. These executives have responsibilities related to governance, decision-making, and leadership roles. They represent a variety of industries to ensure a full understanding of the current issues of management and pool management in the era of modern globalisation.
Sampling procedures
A combination of purposive and stratified sampling methods was used. We started with the identification of a list of large and medium-sized companies in various industries and then stratified them based on industry sector, company size, and geographic location. From each stratum, participants were randomly selected who met the criteria of managers involved in public administration and leadership. This helps to ensure a representative and diverse sample.
Research design
A mixed method of research was chosen, combining qualitative and quantitative approaches to holistically address current challenges and problems in the field of management in the context of modern globalisation. In particular, interviews were conducted with a subgroup of participants (about 10-15) via Zoom to explore their experience, perceptions, and ideas about the main challenges in the globalised dimension of public administration. A structured questionnaire was also developed for the remaining participants (approximately 52-57) to collect quantitative data on their perceptions of various issues in the context of the spread of modern globalisation trends. The questionnaire consists of 4 sections. The first section contains demographic data of the participants. The second and third sections are devoted to assessing the main problems in the field of modern governance and identifying the main globalisation challenges (See Table 1.)
Table 1.
Summary of the main issues
|
Section title |
Question |
|
Section 2: Current issues of management and public administration in the context of globalisation |
2.1 What, in your opinion, are the most pressing problems of management and public administration in the context of globalisation? Please select one or more answers: 1. Global competition 2. Cultural diversity and intercultural understanding 3. Global environmental issues 4. Changes in geopolitical relations 5. Information security and cyber threats 6. Other (please specify): 2.2 In your opinion, which factors of globalisation have the greatest impact on management strategies in modern companies and governments? Please select one or more answers: 1. Internationalisation of business 2. Changes in technology and information space 3. Global production chains 4. Growth of international trade 5. International cooperation and agreements 6. Other (please specify): 2.3 What specific challenges of globalisation do you see in your industry? Please select one or more answers: 1. Reducing costs and increasing competitiveness 2. Cultural adaptation and communication 3. Environmental issues and sustainability 4. Global risks and crises 5. Regulatory harmonisation and requirements |
|
Section 3: Management and public administration strategies |
3.1 What public administration practices are used to implement effective strategies in a global context? 3.2. Describe the environments of managerial activity in today's global world. |
|
Section 4: The future and recommendations |
4.1 What recommendations would you make to improve management and public administration strategies in the context of globalisation? 4.2 How do you see the future of management and governance in the context of globalisation? |
Source: authors' own development
Instruments and Data collection
Semi-structured interview guides were developed, covering such important topics as current management principles, challenges faced by modern managers, adaptation to globalisation, and successful practices. The interviews were conducted via video conference. A multi-faceted questionnaire was created to gauge the participants' opinions on various issues in the field of modern management.
Data analysis
The data analysis took place in several stages: qualitative and quantitative. In particular, the first (qualitative) stage involved transcribing and analysing the interview notes using thematic analysis. Recurring themes related to problems, challenges, adaptations, and successful approaches were identified. Subsequently, statistical research methods were used to process the findings and an inferential analysis was conducted to understand the relationship between governance effectiveness and globalisation factors. Having analysed both qualitative and quantitative data, the results are combined to provide a comprehensive overview of the main management issues through the prism of globalisation.
Ethics of the study
Results
Globalization in the modern world is crucial in shaping the content and format of management and public administration. Today, it is almost impossible to create a completely autonomous environment in the management cluster, even if we are talking about traditionally closed highly specialized areas (including the military). When the issue of management or public administration in the economic sphere is considered, globalization dimensions play an almost dominant role. It is worth noting that management activities are not only practically oriented management steps. If we look at management from a global perspective, it concentrates on such aspects as subordination, subordination, process management, people management, etc. Kourula et al. (2019) emphasize that the “art of management” is a key parameter of business behaviour, as it performs a stabilizing and normative function. Regulation determines the nature of the managerial activity, which actualizes the need for a subjective component.
At first glance, global processes focus on pragmatic solutions to practical and strategic issues. However, a closer look at the governance structure in global projects reveals a clear structure of rights and obligations of economic actors. This approach defines managerial activity in a meaningful way, not singling out a person as a separate element of activity but integrating him or her into a functioning system. And within this system, a management paradigm is formed, which determines the positioning of both the management and subordinates. Koval et al. (2019) note that the management mission of the state level remains in fact the last resort in resolving all problematic issues in economic processes.In this context, another relevant contradiction of modern management arises. The clash of interests of different economic actors leads to competition not only in the dimension of a particular sphere but also forms the concept of global competition. Under such conditions, we get not a situational confrontation, but a constant competitive environment, in which management systems play a decisive role in gaining advantages for a business project or public organization.
It is worth noting that globalization has affected virtually all dimensions of socio-cultural life. In some aspects, globalization trends have already gained a dominant status, while in others globalization is only gaining ground at a rapid pace. Nevertheless, the management cluster is moving to globalization dimensions in a balanced and gradual manner. As sustainable elements of socio-economic life, management, and public administration are difficult to integrate into the global paradigm. At the same time, in the practical and operational dimension, modern management demonstrates a fairly high level of flexibility and readiness for change.
On the other hand, current changes in geopolitical relations can have a significant impact on the management of large and medium-sized companies and organisations. First, they affect the generation of risks and instability. The need to adapt to changing geopolitical circumstances can lead to increased risks and instability for companies. They may face trade restrictions, elections, sanctions, and other factors that affect the business environment. Changes in geopolitical relations can also affect companies' international production chains, especially if they have a global presence. For example, the introduction of duties and tariffs may require a review of logistics and the search for new suppliers. This point was emphasised by 20 participants (33%). This demonstrates the importance of geopolitical factors in modern management and governance. Information security and cyber threats were also recognised as serious problem (16 participants - 22%). This reflects the growing security and privacy issues in the context of globalisation. Global competition received the support of 13 participants (17%), which indicates the importance of competition for companies in the global market environment. Cultural diversity and intercultural understanding were highlighted by 11 participants as relevant aspects requiring attention in management (14%). Global environmental issues were mentioned by 10 participants (14%). This demonstrates the growing attention to environmental issues in global management decisions, especially in large multinational companies (See Figure 1).
Figure 1: Key challenges in modern management (based on respondents' answers)
Source: author’s development
The globalization of economic life leads to such processes as the globalization of production facilities and processes, the globalization of commodity and monetary activity, and the globalization of logistics structures. Traditional state and local management systems are unable to cope with the scale of global economic activity. As an alternative, a combination of process management and operations management principles is proposed (Morris & Cohen, 2020). Such a model helps to increase the leverage of the management system and its effectiveness in the new environment. If globalization is a more ideological and strategic concept of modern society, then the principles of competitiveness determine the practice-oriented component of socio-economic processes in the world (Gorynia, 2019).
When determining the main factors of globalisation's impact on management strategies, changes in technology and information space play an important role. This item was highlighted most frequently by 20 participants, which demonstrates the importance of these aspects in global management. International cooperation and agreements (14 participants) also featured prominently, as they can be important for international relations and business. Growth of international trade and internationalisation of business were also mentioned, although with fewer responses (13 participants each) Global production chains also have their weight but were answered by fewer participants (10). This point was particularly emphasised by the heads of large and powerful companies (See Figure 2).
Figure 2. Factors influencing globalisation on management strategies
Source: authors' own development
The tendency of modern society, which corresponds to globalization innovation trends, is to re-design all processes and phenomena. The management paradigm also updates the design of its structuring and organization (van Buuren et al., 2020). The problem of governance in modern society is explained by the emergence of a number of inconsistent and unpredictable socio-cultural events that create uncertainty and turbulence in civilizational progress (Ansell et al., 2021). The permanence of socio-political, socio-economic, and cultural processes leads to a situation where traditional management strategies become ineffective or lose their effectiveness. The usual conditions for the development of the management system are characterized by the concepts of sustainability and reliability, which are actually the key goal of the functioning of management activity. However, in today's world, there is a paradoxical situation when management has not only an organizational and structural dimension but is also focused on transformational and innovative aspects. For this reason, the main challenges that are important tasks for modern managers will need to be addressed for the functioning of modern management. Regulatory harmonisation and requirements received the highest number of responses (21), which demonstrates the importance of regulatory compliance in the global context. Global risks and crises also received a significant number of responses (16), highlighting the need for risk management. Cultural adaptation and communication Reducing costs and increasing competitiveness have similar numbers of responses (13 and 10 respectively). Environmental issues and sustainability were mentioned by 10 participants (See Figure 3).
Figure 3. Specific challenges of globalization in the industry
Source: authors' own development
The digitalisation process is a key factor in this whole system. Digitalization has a direct impact on the management system, forming a completely new format of management both in human terms and in organizational and technical terms. The ability to manage remotely, online, virtually, and in other ways available through the technological and digital arsenal radically changes the management system as a whole. Increasing the level of communication and data transfer involves new ways of interaction at the level of manager-subordinate from the lowest level employee to top managers of the public or private sector.
The modern management system is forced to develop algorithms for its functioning in different interpretations, depending on current or potential socio-cultural realities (see Figure 3).
In the modern world, the flexibility of the management system is especially appreciated when the existential and goal-oriented component is preserved, while the structural and organizational format is transformed in accordance with external conditions(more than 45% of respondents emphasised these aspects).The key concepts of managerial activity in crisis or force majeure situations are: cognition, communication, coordination, and control (Comfort et al., 2020). To achieve these components, the management model must operate with relevant mechanisms and tools that will be effective on a global scale. Sermuksnyte-Alesiuniene et al. (2021) define digital transformation as a key element of influence on the governance system.At the same time, in order to improve management and public administration strategies in the context of globalisation, recommendations may include several important aspects. First of all, they should systematically analyse global trends and phenomena affecting business and public administration and take them into account when developing strategies, develop international networks and partnerships with similar organisations to share knowledge, experience, and resources. At the same time, they must be flexible and adaptable to changes in the global environment. Management must be prepared to respond to immediate challenges. In this system, the effective use of technology is a key element. Modern managers need to use modern technologies to improve communication, data analysis, and decision-making, develop an effective system for monitoring and evaluating the results of strategies, and respond to the results of analysis.
Discussion
A number of problematic issues have emerged in the current scientific discourse concerning the impact of globalization on the public sector management system or on management activities at various levels. The main debate is about the balance between the powers of local management and the potential of management activity in general. A separate cluster of studies indicates that globalization, through the introduction of innovative technologies, only enhances the efficiency of managers. Another vector of research warns against the threats associated with globalization trends that can create conditions in which the management model will not be able to function to its fullest potential.
The consequence of such theoretical and methodological guidelines was an increase in the level of the human dimension of the management system and public administration. The potential of the manager and the ability to realize it in the context of effective activity are becoming a priority aspect of managerial activity.
The issue of leadership is now a relevant point in building activities at all levels of the economic sphere. The ability of a manager to perform his/her managerial functions not at the formal level, but to offer principles of development (of his/her personal or collective subordinates) is a promising area of managerial activity. The scientific discourse proposes leadership as an axiological principle that will determine not only the format of a manager's work but also dictate the goals of their activity.
At the same time, this clash of objective (globalization) and subjective (leadership and self-organization) dimensions in the modern managerial paradigm generates lively debate. The discourse is based on contradictions that arise from the simultaneous strengthening of the positions of the managerial subject and the objective (globalized) environment. For a long time, these contradictions were reconciled by recognizing the priority (and sometimes the supremacy) of the purpose of the governance system over its format. However, global innovation shifts, primarily total digitalization, and technologization, significantly increase the status of the objective dimension. Therefore, the current management paradigm requires new principles of correlation of the object-subject balance in the globalization dimension of today.
Among the theoretical and methodological guidelines that are actively used in the modern management model, structural and axiological principles play a leading role. For the public administration system, especially in the public sector, the level of institutional maturity is important, which is determined by legitimacy, trust, and effectiveness (Casady et al., 2020). This institutional dimension contributes to the formation of an effective governance system and prevents the spread of various negative manifestations of the globalization of public space: the health crisis (Ozili et al., 2023), the environmental crisis (Baloch et al., 2021), and economic downturns (Dooranov et al., 2022).
At the same time, the practical and axiological model of the management model, which offers specific ways to improve the work of a public sector manager or administrator, is gaining importance. The dynamism and permanence of the global world causes many crisis phenomena that cover all areas of social activity. This, in turn, becomes a problem for the management level and forms a new cluster of management and public administration - crisis management (Al-Dabbagh, 2020). Globalization is not a crisis, but it produces processes and phenomena that create challenges for the management and public administration cluster.
When considering the problem of management and public administration in the context of globalization, one should not focus solely on structures, organization of work, or other quantitative indicators. The human dimension of the governance system also occupies an important niche in the current global trends of society. Following the example of innovative transformations of the scientific and technological dimension, we can trace the tendency to preserve the exclusivity of a person in all processes. For a long time, the management system has been trying to minimize the influence of the subjective factor on decision-making. However, as reality shows, the manager's responsibility retains existential meanings in managerial work and cannot be replaced by a set of algorithms or quantitative characteristics.
McConnell and Hart (2019) emphasize the ideological and mental result of ineffective management, which is formed in public opinion. At the same time, a persistent stereotype of the inaction of the governing cluster is formed. The governance system covers not only the direct work of management or public leadership in specific areas of social activity. The modern synergistic model of governance involves the formation of an understanding of the functioning of all actors: managers, subordinates, stakeholders, and neutrals. In such a paradigm, the education system plays a particularly important role with the knowledge and managerial skills acquired by specialists (Tuychieva&Xudoyorov, 2022).
The vulnerability of the management process is also contributed to by logistical problems, which have significantly increased after the COVID-19 pandemic in the global sense (Free &Hecimovic, 2021). Lopez and Alcaide (2020), in turn, consider global digitalization of the same scale to be the solution to the global logistics and organizational crisis of modern civilization. For the management system, this can indeed become a lifeline both in the operational and practical present and in development strategies. E-commerce has demonstrated high rates of demand and efficiency at the microeconomic and local economic levels (Babenko et al., 2019). At the same time, the modern management discourse points to the transition of the principles of the electronic and digital management format to the global level (interstate, transcorporate, etc.).
It is noted that the use of innovative (digital, technological) elements in management in a particular place and in a global manifestation is significantly different. Similarly, the human dimension of management processes at the individual or local level requires quite different leadership qualities. All of these elements in practical and value terms should be actualized at the actual subject-functional level of the performer. In a global sense, leadership and innovation in the management system become components of a powerful system that does not allow for different interpretations or relaxations.
One of the most popular formats of management activity is an innovative model based on the synergy of public-private partnerships (Cheng et al., 2021). Globalization has led to a significant increase in the intensity of economic and social activity. For the management system, as noted by Yang et al. (2021), the rapid growth of quantitative indicators cannot be proportional, as the nature of management is based on qualitative principles. Social responsibility is becoming a leitmotif of modern global politics and ideology. Management processes are increasingly focused on fulfilling the conditions for the formation of general and individual well-being (Barauskaite&Streimikiene, 2021).
Conclusions
Thus, modern principles of management and public administration are characterized by the influence of globalization. The main challenges to the further development of management are global competition, cultural diversity, global environmental issues, changes in geopolitics, information security, and cyber threats. In particular, growing global competition puts managers of large and medium-sized companies under serious pressure. The search for competitive advantages and flexibility have become key success factors. In the context of globalisation, challenges arise in the area of intercultural understanding and adaptation to different cultural characteristics. Management must be prepared to work with different cultures. Climate change and other global environmental issues are becoming a growing concern. Companies and governments need to develop sustainable development strategies. Geopolitical changes, such as trade conflicts and changes in international relations, have been shown to affect management strategies and can create instability. Nevertheless, in the context of globalisation, it is increasingly important to protect information and combat cyber threats.
The organizational and structural format of the management model undergoes changes and transformations not just in the short term, but sometimes online. Therefore, flexibility and dynamism are the key characteristics of management and public management activities. Such guidelines ensure the effectiveness of the management system in the context of the permanence of socio-cultural realities. At the same time, managerial experience retains the fundamental components of its intended purpose without losing the meaning of the rule of order and control in the organization of economic activity.
Among the mechanisms and tools that enable the management system to successfully respond to the challenges of the times is the cluster of information and communication technologies. Digitalization greatly simplifies the ways of interaction at the managerial level, both in the managerial vertical and in the horizontal dimension: manager-subordinate. The human dimension of the management paradigm remains a relevant concept that promotes the development of such elements as responsibility, leadership, morality.
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