Emerging Challenge of Management

1. Globalization:

             Today’s economy is globalized in which geographical boundaries of a country have only political relevance: economic relevance has extended beyond this. Globalization of business is helpful in earning profit but at the same time, it creates many challenges for management. Therefore, management practices which are relevant for a company in its place of origin may not be relevant for its operation in other country.

2. Social Responsibility:

            Social responsibility of a business is defined as the obligation of business executives as decision makers to take decision and action which offer not only consumer satisfaction but also citizen satisfaction and welfare. In recent years, due to environmental degradation and inferior quality of goods, public awareness has forced management to act in socially responsible manner. This aspect is now duly incorporated in the corporate mission as well as in the formulation of plans and policies.

3. Technological Development:

            With the technological revolution at present day, the man kind is surrounded with vast amount of data available. There is bulk collection of data and field in such a way that it is available readily when needed for planning, decision-making, and control. Moreover, the management should cope with the ever changing new innovation in the technical field. Management Information System (MIS) became helpful to management in undertaking managerial functions effectively and efficiently.

4. Quality Consciousness

            Quality assurance becomes one of the important aspects in the modern business activities. Increasing concern of customers and consumers’ association put pressure on the organization to improve the quality of goods and services they produce. Quality is a major factor of competition among the organizations now a day. It serves as a base to increase the consumers favor towards the firm. Thus quality management is one of the major challenges of modern management.

5. Change Management:

            Change is law of nature. It is required to manage change properly otherwise it will either be left behind or be swept away by the forces of change. Management of change may be defined as a conscious and concerted effort initiative by those who are in charge of the organization to assess the impact and influence and to formulate dynamic action plan to maintain equilibrium between controllable and uncontrollable forces. The forces of change exert a powerful influence over behavior of management and limit the scope of management.

6. Knowledge Management:

            With the expansion of technologies, knowledge management (KM) has come to assume greater significance. KM can be defined as a systematic way of leveraging information and expertise to improve organizational innovation, responsiveness, productivity, and competency. It is the information acquired by the business process and stored in a common place to be shared by different other processes. Thus it is continuous activities involving acquiring, creating packaging, distributing, applying, and maintaining knowledge. 

7. Work Force Diversity:

            Earlier work force considered to be illiterate and all management activities used to be geared to meet the job demands and expectations based on the illiteracy of worker. Today they are more educated, skill oriented comparatively younger and have high expectations.  Beside this, management has to handle the worker with different socio-cultural background. Thus it is new challenge for management to manage diverse work force of their organization.

8. Workers’ Empowerment:

            The job requirement of present day organization requires more educated and skilled manpower. As a result, difference in the role of manager and operatives narrowed day by day.  Techniques like MBO have ensured workers participation in the planning and decision-making process. Managers have to now perform the role of facilitator rather then boss.