Modern Challenges for Managers: Explained In Detail

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A company’s external environment is constantly changing. This atmosphere presents a slew of external issues that are hard to manage.

These variables may have a significant influence on how effectively a manager performs.

Modern Challenges for Managers

Companies must adapt swiftly and efficiently to changes in the external environment if they want to survive. We’ll look at three major challenges affecting the job of management: information technology, globalization, and intellectual capital.

Information Technology (IT)

There is a significant change in information technology. Computers, the internet, intranets, teleconferencing, and an endlessly expanding library of programmable solutions are all available to help individuals get things done more efficiently. A decision must be made about which technological tools should be utilized. Many issues have engaged experts to assist them in making an informed hardware and software selection at that time.

Managers must utilize technology in order to do their jobs and get the results they want. The use of IT must be decided upon taking into account the end user as well as the work to be done. Managers must learn how to collaborate with IT specialists in order to choose the most efficient technologies for the job, as well as how best to implement them. Managers must decide on the ideal method for connecting an organization’s system and deciding what network information will be accessible to whom and what types of security are required to safeguard it.

Only if the personnel are properly trained to utilize IT will it be successful. Managers that succeed ensure that staff are connected at the time of technology enrolment and implementation. The computerized challenge that today’s executives confront is likely to continue. Personal computers (PCs) were first developed more than 26 years ago, and the internet was created approximately ten years ago. All of these changes have had a significant impact on the workplace.

The use of this technology has enhanced employees’ job performance. IT savvy executives will have a bright career ahead of them. Some people may be able to work for more than one business without leaving their home office. Managers must remain vigilant to the opportunities and perils that the continuing technological revolution poses to businesses.

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Globalization

Communication technology has brought the whole globe closer together. The rapidity with which technologies such as satellites for information transmission have improved our lives is remarkable. Globalization of business, culture, and economics is aided by the ability and freedom to communicate with anybody, at any time, and from almost anywhere.

The worldwide trade blocks and global trade agreements that have grown as a result of the communication revolution have aided in the development of global trading blocks and international trade agreements.

The trading blocks such as NAFTA, MERCOSUR, ASEAN, and the European Union have all formed in recent decades. It’s hard to believe that countries who were fighting each other during World Wars have now banded together for economic goals. The globalization of markets has made it easier to establish international trade.

The multinational businesses have started relocating their production operations to countries where low-cost, skilled labor is available. This has allowed these firms to lower the product’s manufacturing costs. The Indian market opening up to global businesses has transformed markets. Indian producers are now attempting to boost the quality of their products and offer goods at reasonable prices. In a globalized marketing environment, customers are the most satisfied group.

A business manager must consider the global economy while developing his company’s policies. He must prepare the organization for competing in the future. Managers should develop strategies to compete on price and quality against foreign competitors as consumer preferences expand internationally. The worldwide trend toward globalization is unlikely to alter; the best thing to do now is accept it. Modern managers should be prepared psychologically for future global competition.

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Intellectual Capital

The term “intellectual capital” was coined relatively recently to reflect the fact that modern corporations’ most valuable assets are its employees’ brains, rather than machinery, bricks and mortar.

Thomas Stewart defined intellectual capital as “the intellectual material-knowledge information, intellect property, and experience-that can be utilized to generate wealth.” During the 19th century and early years of the 20th, agriculture was the most common profession. The majority of people were engaged in farming in some way.

During the early decades of the 20th century, people began moving from agriculture to industry. Because of war needs of countries worldwide, Phillip became a manufacturing center during World War II.

The information revolution hit in the latter half of the century. During 1970s, managers discovered that utilizing information technology might help them gain efficiencies and competitive advantage. During this era, service industries grew rapidly.

The introduction of information technology put additional pressure on employees. They had to first understand how this technology worked before being able to apply it effectively. Highly educated workers were required to maximize the use of information technologies. The Knowledge Worker is not the same as F.W. Taylor’s employee. The knowledge worker is expected to come up with innovative and better ways to improve his work and perform it well.

One best technique of doing things was recommended by the supervisor in Taylor’s system, but the knowledge worker is supposed to find his or her own best way of accomplishing tasks. Today’s workers are also expected to keep up with new technological advancements and make use of them. They are obligated to assist in the company’s overall productivity improvement. Such workers are intellectual capital, which is today’s organization’s most essential asset.

Managers must employ methods for collecting and utilizing knowledge generated inside the company. To stay competitive, managers must utilize the expertise of their employees, which has been recorded in their memories. They must employ approaches that optimize the use of workers’ knowledge to benefit the organization.

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