The Management Challenges Faced Commerce Essay

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The research paper is focused on the management challenges faced within an organisation. This paper reflects about the substantial changes brought within the theories and styles of leadership and management. To be successfully competitive within the crucial competitive business world, an organisation must be adaptive to changes. The leaders and managers of the organisation must be informative about how to manage and lead the people within the organisation. In leading the workforce, there are various management challenges experienced by the leaders and managers of an organisation. Within the globalisation, the organisations are emerging with solutions to face the crucial challenges of management.

INTRODUCTION

The attainment of objectives and goals within the organizational and business activities through the use of effective resources is termed as management (Winch 2010, pp.467). The key factors that entail in management in context to controlling of an organization are leading, planning, organising and staffing (Daly et.al 2004, pp.346). The organizations are viewed in the perspective of systems. To achieve productive results within the system through human action can also be termed as management (Allan andStankey 2009, pp.286). An enterprise is managed within the help of directors and managers who are authoritative of managing and taking decisions. Within the time, crucial challenges have been faced by the management of many organizations (Johnson 1992, pp.82).

In the era of 21st century, some common challenges faced within the management and leadership are global economic downturn, the backdrop of financial uncertainty and technological change (Ruiz and Carlton 2003, pp.978). The aspects of the working world are changing, and such changes must be adaptive by the management and the leadership approaches. According to a research, the managers of the United Kingdom tend to fail in successfully meeting the management challenges in the modern business world (Armstrong and Stephens 2005, pp.278). The managers lack of adequate training, essential skills, support and development. The United Kingdom is suffering on both social and economic scale due to ineffective managers and leaders within the organizations (Dransfield 1998, pp.97). The biggest loss for an organization could result from the poor leaders (Daft 2011, pp.212). Poor decisions made by the poor leaders effect the organization financially.

The paper tends to explore the various issues and challenges pertaining to the management of the contemporary organizations. The basic need for change evolved from the increased awareness and the globalization of the era. The purpose of the paper is to explore the kinds of challenges posed to the managers which may be unique to the older managerial practices. Further, the focus would be on the strategies and practices that would address the mentioned challenges. In particular, the discussion would be on the need for globalization and the challenges posed by the internationalization of the businesses. The conclusion is drawn from a discussion of the potential opportunities available for further research that would go beyond the mentioned propositions which would be inspired by the following analysis.

THE MANAGEMENT AND LEADERSHIP CHALLENGES

In the modern business world, wide range of challenges is faced by the organization's managers and leaders (Morris 1997, pp.187). The most crucial challenges are the knowledge economy, changing workforce, sustainability of business, going global, productivity and the pace of change (Costanza 1991, pp.121). In an era of greater workplace diversity, the managers and the leaders within the organization must be capable of dealing with the diversified workforce (Best 2010, pp.37). The management challenges faced within the changing workforce are misguidance and mistrust of hierarchal systems, preference of collaborating to engage in competition, the millennial and emerging new generation of employees (Bullivant 2010, pp.85). The managers must not focus of managing and leading the millennial in an effective manner but also to encourage participation in the context of responsibilities towards management and leadership (Chang 2005, pp.65). Where the competitive currency is innovative and informative, most of the developed economies have shifted to knowledge based and service economy.

The main essence of a successful organization is its human capital (Gupta et.al 2010, pp.98). The most common issue that emerges with the United Kingdom leaders and managers is that they fail in creating the business environment and culture that can build the required networks for utilizing and transferring of information, supports and endeavours innovation and risk-taking behaviour and values leaning (Ramroth2006, pp.251). Gaining an advantage of having a value chain throughout the world by a small organization is known as globalisation (Coakes 2003, pp.81). The organization that prevails in globalisation carries of offshore operations and an extensive supply chain. The cross cultural competencies are vastly required by the leaders and managers to lead and manage across the different political, cultures and geographical systems of different countries (Blythe and Zimmerman 2005, pp.230). The threat of global warming is commonly faced by the non-profit organizations, charities, corporations, public sector organisations and the government in today's world (Freeman 2010, pp.190). A sustainable approach must be adopted by organizations to successfully achieve their objectives and goals (Mcnabb 2005, pp.90). The workforce must be effective enough to lead and manage the sustainable enterprises.

Within the passage of time, the business world has become increasingly competitive (Aiguier et.al 2010, pp.175). In the context of the intensity and pace of working lifestyle, the managers face with a lot of challenges. In accordance to meet the challenges, the stress level increases within the modern working life leaders and managers (Schermerhorn 2010, pp.151). In today's world, leaders and managers must be capable of learning the organisational values and shape them in a sense of identity. The managers must also acknowledge themselves in terms of personal resilience that succeeds them in their careers (Samson and Daft 2011, pp.146). The global competition encounters within the ways of preserving the precious resources to accelerate the pursuit of sustainability and efficiency (Webber 1975, pp.90). A successful global organization is the one that provides its service users and customers with the best deals and share experiences. Through the increasing access to information and willingness to collaborate, good share experiences could be experienced by the customers (Daft et.al 2010, pp.345). In satisfying the customers and service users the organisational value faces an increasing pressure for maximisation (Cole 2004, pp.219). The successful leaders and managers are the one that are focused on increasing the organisational value and eliminating waste even with the minimum available resources.

THE GLOBALIZATION CHALLENGES

The dreadful fact is that organizations have been faced with the biggest challenge which was not present fifty years back that is the problem of globalization. Globalization itself has raised the bar for the requirement of the implementation of the Strategic human resource management; aligning the goals of the business with the human resource. The wild pace of the globalized competitive forces, the rapid advancements in the technology, the rigorous changes in the demographics, and the inconceivable increase in the information technology have led to the creation of a highly dynamic environment in the corporate world which is prone to changing every minute.

A survey conducted in 2011 by the Pricewaterhouse Coopers stated that 66% of the CEOs identified a lack in the required managerial skills as the biggest challenge. The 20th century bought in the biggest revolution of all times that was the evolution of the telecommunications which helped the businesses to transform completely such that they succeeded in outreaching the national boundaries. This transition is said to have completely destroyed the "tyranny of the richness and reach trade-off" as Philip Evans and Thomas Wurster perceive it (Sarlak, 2010).In today's era, learning and performance is seen as an opportunity at work where the advent of technology has helped the businesses to reduce their costs all the while raising the levels of productivity as they have to compete in a globalized marketplace.

One of the most intriguing challenges of the globalization is the inherent disintermediation as the natural aspect. No matter how long the distances, or what the differences, the managers are expected to work with supply chain and colleagues from all around the globe. Globalization has given rise to adaptive mind-setsas it is all about incorporating diversified cultures. The organizational walls form an integrated corporate culture by supplanting the individuality of various national cultures and languages.The managers face the basic challenge of bearing the critical responsibility to provide support for the corporate culture (Steers et al. 2010). It is the duty of the managers to facilitate an effective communication which of course is the outcome of the most effective teamwork across the globe.

There are basically three major challenges (Griffin, 2012) posed by globalization to the organizations which include:

Whenever the global environment of the business changes, the organizations fail to accompany it with a subsequent change in the managerial practices pertaining to its human resource; this leads to the creation of a situation where it becomes the reason for failure despite the utilization of appropriate technical systems

The organizations fail to explore the effectiveness of the human resource management practices which require being linked with the strategic decisions of the business overall. The failure to implement the strategic Human Resource Management in the organization is another big challenge as a consequence of the globalization.

In order to implement and make the effective use of the strategic HRM practices, the management must ensure that the human resource employed has all the competencies required to achieve the sustainable competitive advantage in the globalized era.

THE KNOWLEDGE MANAGEMENT CHALLENGES

One of the major challenges faced by the management of today's organisations is the lack of appropriate knowledge (Plunkett et.al 2008, pp.233). The organisational management must adhere itself to the appropriate knowledge in order to develop, deploy, identify and generate knowledge (Kreitner 2009, pp.115). It is essential for the workforce to gain complete knowledge about the organisation and the type of business it is involved in (Williams 2011, pp.121). Once the knowledge is learnt within the organisation, its manageability must be known so that it could be dispensed to the respective resources and its effect on the overall organisation and market (Daft 2012, pp.86). The communicating, accumulating and sorting of information at a high rate speed is in the context of technology.

THE NEW PARADIGM OF MANAGEMENT

According to research, the major assumptions about management have become obsolete (Griffin 2012, pp.92). Within the competitive era of the business world, the assumptions of management inquired changes in the context of management and the workforce in the organisation (Capon and Hulbert 2007, pp.321. To improve the organizational performance, use of different types of personality theories, ideas of human consciousness and process models are essential (Joia 2002, pp.54).

The social discipline of management is continuously changing as it is regardless of the natural laws (Khosrowpour 2000, pp.410). The obsolete assumptions about management could not be implied within today's management situations; therefore, they result as hurdles within the practice of management (Nieuwenhuizen 2008, pp.93). Within the new set of assumptions about management outlines the requirement of balance between the internal and external attention (Linstone 1994, 209). The new assumptions became extensive example for managers; it guided them not only to manage but also to lead people by encouraging the knowledge and strengths of every individual (Drucker 2003, pp.164). The new leadership style entertains openness, consideration for others and recognition of possibilities.

THE CHANGE LEADERSHIP

The practices of balance in management need to be develop by the organisations and its workforce (Ghose andDhar 2000, pp.597). Different kinds of learning and type of theories are adopted by the people and the organisation (Reynolds 2010, pp.236). In the crucial world of business, today, only those organisations are successful that entails the change leaders and encourages change leadership. Employing a learning environment in the organizations is the key to success in the modern era; consistent learning attributes to the effective use of the change leaders in the organization.

THE INFORMATION CHALLENGES

Managing the information in an appropriate manner is one of the major challenges faced by the management of an organisation (Lewis 2007, pp.97). As along with the input of information technology, that is widespread within the organisations (Sarlak 2010, pp.189). The management must learn to organize the management data through threshold phenomenon, direct impartial observation and probability theory.

THE THREE TOP CHALLENGES FACED BY TODAY'S ORGANISATIONS

There are three main challenges faced by the managers and leaders of today within an organisation (Swaim 2010, pp.224). In context to the diversified workforce, it becomes difficult for managers to hire, train and motivate the working individuals within the organisation (Williams 2007, pp.133). Some of the organisations adopted strategic planning through the strategic workforce for forecasting, evaluating and analysing the appropriate talent (Swansburg 2002, pp.130). It is difficult to develop Employer Brand Management (Cooper 2005, pp.113). In the global world of today, the organisations are in dire need to Employer Brand management that provides satisfaction to an employee (Chisholm-Burns et.al 2011, pp.81). It becomes quite stern for managers to fulfil their management responsibilities within the multicultural organisations (Lewis et.al, 1998, pp.72). Various cultures are reflected within an organisation, the managers must be capable of dealing with the cultural differences within the diversified workforce (North and Gueldenberg 2011, pp.137). The cultural difference could effectively be handled with the use of appropriate leadership styles and theories.

In order for the firm to compete in the globalized era, they must learn to survive in the highly dynamic modern world. They require more flexibility, a quick learning and a rapidly evolving culture in their organizations. This is impossible to be achieved without implementing specific training programs that address the issue of globalization. The basic reason for this is to avoid losing the business because of cultural insensitivity issues, retaining the highly diversified staff, enhancing the job satisfaction of the employees, and of course, raising the level of effectiveness while communicating within the organization. Globalization is the key to all the challenges and management must work to overcome this challenge by training their staff so that not only their skills and knowledge is developed, but they are also motivated and their competencies help the business in achieving success in the new era (Schuler 1992).

CONCLUSION

Globalization is the key to all the transformation in the structure and the practices of the organizations. It defines the modern era for the corporations around the globe. The basic changes which have occurred are the consequences of the globalization. The management challenges faced within the changing workforce are misguidance and mistrust of hierarchal systems, preference of collaborating to engage in competition, the millennial and emerging new generation of employees (Maiyaki 2000, pp.115). The biggest loss for an organization could result from the poor leaders (Wells 2003, pp.78). Poor decisions made by the poor leaders effect the organization financially. The successful leaders and managers are the one that are focused on increasing the organisational value and eliminating waste even with the minimum available resources (Vanduinkerkenand Mosley 2011, pp.90).

Within the competitive era of the business world, the assumptions of management inquired changes in the context of management and the workforce in the organisation (Steers et.al 2010, pp.224). The social discipline of management is continuously changing as it is regardless of the natural laws. Different kinds of learning and type of theories are adopted by the people and the organisation (Koontz 2003, pp.125). Adopting a culture of continuous learning is the key to success in the contemporary organizations. Further, the implementation of an effective Strategic Human Resource Management practices is also a challenge for the organizations.The management must learn to organize the management data through threshold phenomenon, direct impartial observation and probability theory.

Faced with a dynamic environment, the businesses must work fiercely to remain competitiveand must focus on continuously improving the systems that manage their human resource and also brings the required changes in the organizations. The core focus of the organizations must be on upgrading the required core competencies of the human resource within the origination as it is a necessary step to counter the potential challenges for the upcoming era. This study is yet incomplete because the changing world of business has a lot more to be explored; but this paper can become the background for further and extensive study in the field of contemporary organizations.

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