BEHAVIOR OF MANAGERS IN CONDITIONS OF UNCERTAINTY

• Main Authors: Smajilovic, Emir, Radic, Vlado, Radic, Nikola
• Format: Conference Proceeding
• Language: English
• Subjects: 20th century; 21st century; Agricultural economics; Agricultural products; Barriers; Business law; Cold War; Economic crisis; Exports; International trade; Macroeconomics; Managers; Military; Military aid; Military equipment; Organizations; Principles; R&D; Research & development; Security aspects; Supply chains; Textiles; Trade; Turbulence; Uncertainty
• ISSN: 1849-6903; 1849-6903

The first twenty years of the 21st century are characterized by unprecedented uncertainty, which manifests itself in economic crises, trade disputes, conflicts between countries, terrorist actions, extreme migrations, pandemics and the consequent interruption of well-established supply chains, stoppage of production, dismissal of employees and the decline of almost all economic indicators. In conditions of uncertainty, organizations cannot work according to classical economic principles but must find new ways of acting in a turbulent market. The greater the turbulence, the greater the responsibility of managers in organizations. In this regard, it should be emphasized that the leadership methods from the 20th century are no longer effective for managers to behave rationally and make effective business decisions. In the paper, the example of organizations for foreign trade in arms and military equipment shows what problems and obstacles they face and how they must solve and overcome them. Armaments and military equipment are specific products and business principles (supply, demand, procurement, transparency) characteristic of cars, equipment, machinery, textiles or agricultural products cannot be applied to them. The specificity of trade in arms and military equipment lies in the extremely emphasized security aspect, defined legal business frameworks, confidential information, closed channels of communication, and personal contacts. This activity carries certain political, economic, and especially security risks, which makes the job of managers in organizations difficult. Since the duration of crises and uncertainties cannot be accurately determined, managers are required to be inventive and have a sense of foresight and responsibility for the realization of set business goals. Any delay has negative consequences for the organization, so managers must responsibly look at the external and internal environment of the organization (employees, relationships and contacts, legal regulations, barriers, and obstacles).