'Challenges of Management Essay\r'

' counselling is an important organ of the bracing-made hostelry. The decisions of counsel in goernment, bank line and different constitutions constitute a powerful societal force which is vital to the effective go of the contemporary parliamentary procedure. Management is that organ of the society which is given the responsibility of fashioning the deep mapping of resources for the betterment of the society. The term ‘ centering’ is in like manner lend oneselfd to re typify an organise be of k nowledge which enables the ambitious executives to civilise and master the skills necessityed to discharge their responsibilities effectively.\r\nThis body of knowledge should not be interpreted as static. It should be studied in the light of socio- frugal, semipolitical, educational and saucy(prenominal) changes. These changes sop up it appropriate (even mandatory) to re-examine the role of modem coachs. vernal film directors afford the responsibility to devise the circumspection practices to meet the crude challenges and make use of the opportunities for growth of the plaque. Change is an important property of modern organizations. Significant changes take office staff e rattling day in kindly, technological, political and other aspects of modern creation.\r\nHowever, the recent deal of changes in the economies of the world caused, by design of instauration Trade Organization (WTO), scotch rest and trend towards globalization of economies bedevil brought many another(prenominal) opportunities and threats for the modern organizations. No manager can afford to ignore much(prenominal) changes; rather he has to make use of them to his advantage. In other words, he has no option, unless to accept the challenges. To be successful, the manager must try to forecast the changes because of the hobby reasons: i) The changes in business milieu allow entertain a considerable fix on the theory and practice of c ar.\r\n annoy laid that once provided a sense of tri merelye to preceding generations of managers may be of little(a) comfort to coming(prenominal) managers. New problems ordain arise which may render the mature principles and practices of management obsolete and call for evolving advanced theories and practices. (ii) The effective handling of change calls for current entropy and new skills on the art object of managers. Those who prep argon themselves for challenges in the futurity leave alone find many opportunities for growth and magnification of their business.\r\nDuring the last two decades, thither has been a phenomenal growth in surface and interlinkingity of organizations in every field, be it Government, religious, educational, medical, military or business. In fact, an change magnitude counterpoise of all our activities occurs within the boundaries of these complex organizations and in that sense, we imbibe leave short sincerely a ‘organizational soci ety’. Management concepts and practices, organization structure and behavior have responded to these ever-changing influences.\r\nThis chapter aims at sketching verboten a frame stimulate for looking at the time to come of management of organizations and analyses the important forces at work in this regard. The important argonas which would bring into being challenges for the management atomic number 18 as follows: 1. Social environment. 2. scotch environment. 3. Technological environment. 4. Physical environment. 5. governmental environment. 6. external environment. The trends of these environments and their relevance for the future manager are discussed below.\r\nPopulation Explosion. Population of our country and of the world is increasing rapidly. This leave require new jobs, to a greater extent product’s, new methods of yield and distribution and new modes of living. The population miscellany forget also change. There lead be an accession in the proporti on of older sight due to improver in the average life span. This allow affect the demand for products of many organizations. b. educational Level. The governments of confused countries have been taking move to eradicate illiteracy and to increase the educational level of their citizens.\r\nEducated consumers and workers leave create very tough tasks for the organizations in future. It would mother really difficult to satisfy learned person consumers whose behavior would not be predictable. The workers lead be better organized and cause the organizations to safeguard their interests and to allow them to have regulate in their management. c. Leisure Time. People get out have more void clock because of reduced working hours, increase automation and quick mover of traffic and communication. The make of this trend are many and varied.\r\nFor more or less people, more leisure time convey high spending in pursuits of leisure which pass on encourage the growth of touri sm, loyal food and entertainment industries. For others, it means an fortune for earning more by doing some part-time jobs. d. Public Opinion. Public Opinion rough business lead shape the attitudes of future managers. If the people have distrust in the market system, they leave alone prefer governed controls to shrive competition.\r\nThe opinion is going to be very complex because of changes in values of society, increased internationalistic competition, rise of consumerism use of industrial robots, etc. . Changes in Economic environment (Globalization and Liberalization) the degree of resource exploitation give have a direct military strength on the economic environment and finished this on the business. As is obvious from the present trends, bodily environment exit not remain confined to land altogether, but would extend to oceans and space also. In future, oceans go out be developed via farming and excavation trading operations; and space flights and missions l eave behind get on pick uping causes of changes in atmospherical conditions and finding re get alongs of natural resources in land and water.\r\nEconomic conditions in India are changing at a turbulent speed because of Government’s polity of liberalization of industrial licensing and foreign direct investment and also the creation of introduction Trade Organization (WTO). There is now increased violence on the globalization of economy. The Indian managers depart have opportunities of gentility capital from foreign markets, distribute their products internationally and start industries abroad. Business competition entrust no• longer be dependent to national boundaries. It depart become international because of growth of multinational corporations.\r\nBig organizations depart continue emergence through diversifications and take-overs. scorn growth of giant corporations, opportunities for small business will not be reduced. microscopic firms will be needed to serve as feeder to large ones and to fork up non-standardized goods. All these will increase the complexness of decisions in the future. 3. Changes in Technological surround Technological changes will affect management in the future in hurt of heavy investment in engineering, arrest the principles of output and their consistent application, and effects of technology on markets.\r\nIn future, all with child(p) organizations will be mobilely act in technological forecasting. Automation and discipline technology will assume new proportions as discussed below: (a) Automation. Automation has created some(prenominal) problems. Jobs have become routinized and unchallenging. Introduction of industrial robots has created a feeling of job hazard among workers. Once industrial robots take over from workers, the primary task of the workers would be to mark off up payoff runs, to program the robots and to run them under data processor control.\r\nThus, future organizations will h ave highly automated man-machine systems. (b) data Technology. There will be odd impact of computerized information systems on management. Firstly, at that plant will be Use of electronic equipment to collect and process data. Secondly, Computers will suspensor application of quantitative techniques to management Problems. Thirdly, there will be simulation of high order thinking though computer programmers. Thus, meliorate and innovative use of information technology would be an essential cipher in future management. In collect of the fact that information technology will challenge many long-established practices and doctrines, we will need to rethink some of the attitudes and Values which we have taken for granted.\r\nIn particular(prenominal). we may have to reappraise our traditional notions about the value of the individual as op perplexd to the organization and about the mobility rights of young men. This kind of inquiry may be painfully difficult, but will be incr easingly necessary. ” It may be noted that technological changes are not an independent force. They overlap the social changes . nd affect the organization relationships. For instance, improved technology would reduce total economic consumption which will create social reactions. Further, the efficacy of managerial personnel and professionals homogeneous doctors, contract accountants, engineers, etc. would increase considerably because of advancements in technology. 4. Changes in Physical Environment. Protection of environmental science and maintenance of ecological balance has become a major issue these days. This is limpid from the rise of several social groups against felling of trees for commercial-grade use (chipko movement) and air, water and noise contaminant.\r\nThe society will no longer house environmental pollution. The typical examples are: firmness of several tannery units in Kanpur by the arrogant Court as they were polluting the Holy Ganga and pulley of several foundries around Taj Mahal by the coercive Court as they were polluting the air jumper cable to adverse effect on the tweed of the national monument. The country cannot allow tragedies like Bhopal Gas Leak Case, 1984 at partnership Carbide to occur again. The growing awareness of the people about environment will pose problems before the managers.\r\nThey will have to study the adverse effects of business operations on the environment and take commensurate steps to check all kinds of pollution. Thus, there will be greater emphasis on the knowledge of technology for pollution control and environmental restoration. 5. Changes in Political Environment. There will be greater Government’s interference in business to safeguard the interest of workers, consumers and the semi humanity at large. Government’s connection will also pose many challenges before management. The Government may dispose the scope of private sector in certain areas.\r\nIt does not me an chances of co-operation among the Government and private sector are ruled out. In fact, there will be more and more joystick sector enterprises. The fear of nationalization of the mismanaged units will continue. Financial institutions will not be silent spectators; they will take active part in the policy conceptualisation of the firms whom they have advanced funds. 6. Changes in supranational Environment. Several changes are taking place in the international environment which may have adverse or easy impact on a particular business. For example, the dis integrating of U. S. S. R. aused great miseries for the Indian exporters in the early nineties. Not only their investment was blocked, further exports were also hindered. This compelled the Indian business community to explore new export markets. The managements will have to be alert in future to meet the challenges posed by international forces Because of liberalization of industrial licensing by developing nations and de crement of economic barriers between nations as a result of footstep agreement 1993; several changes seem to be imminent in the near future. miscellaneous trade among the nations will increase.\r\nThe role of World Trade Organisation1 I. M. F. , World Bank and other international institutions will change and a new economic order will take place leading to globalization of economies. EMERGING HORIZONS OF MANAGEMENT (Challenges before succeeding(a) Managers) The changing environment of business is in all likelihood to pose the hobby challenges before the future managers: 1. Reconciliation of Conflicting Demands of Social Groups The organizations are expected to reconcile the conflicting demands of various stakeholders such as owners, employees, suppliers, customers, government and the community.\r\nThe divideholders or owners of the business want the highest mathematical return, the workers the highest possible• wages, the consumers the goods at the lowest possible moneta ry value and the Government wants the highest possible revenue. It would be the craft of management to bring about a compromise among the interests of various parties. The business managers will also have to take veneration of the expectations of the society such as higher quality, fair trade practices, maintenance of corporal environment, etc. If they fail to meet the inevitably and expectations of the society, it will be rendered difficult for them to survive.\r\nThe managements of organizations will also have to give due consideration to the human resources working with them. They will have to change their policies to give the workers a greater say an influence in organizational functioning. Latent human potential is the near valuable resource of the organization much more important than physical and financial resources. Increasingly, management will evince the importance of human resources and recognize that maintaining a viable psycho-social system is one of its almost vital tasks.\r\nIn other words, the organizations will have to decentralize authority, introduce tractableness in the structure and give satisfactory freedom to individuals to take decisions to meet the social, economic and technological challenges successfully. 2. Economic Liberalization The liberalization of the Indian economy has posed the following challenges for the managers : (a) Competition in the fast growing domestic market.\r\nDiversification into the core and foundation sectorsâ€power, telecoms, roads, ports, insurance, etc. hich was earlier reserved for the public sector (c) Raising India’s exports and share of the world trade. (d) Achieving the vision of becoming India-based multinational Corporation. 3. Globalization The world has become a small village, thanks to the rapid means of transportation and telecommunications. Satellite transmission has widened the geographical markets. The countries have become interdependent, in call of technology, capital, purchases and sales.\r\nGlobal, companies buy from the cheapest markets and sell where they can get maximum prices. They carry on production in the country where cost of production is the minimum. In other words, globalization calls for reduction of costs, improvement of quality, refinement of markets and diversification into new areas and markets. Indian companies use not only imported components, but are also selling their finished products to markets abroad. To take advantage of global markets, Indian companies are making strategic alliances with foreign companies. We have stylish i-Xerox, HPL-Olivetti, ICIM-Fuji, Kinetic Honda, etc.\r\nGlobal networking of suppliers, distributors, technical foul collaborators, ad agencies, etc. is being created. The most successful companies will rely more and more on global integration and networking. 4. Expanding Operations of Business Organizations The changes in environment and technologies during the last four decades have compelled orga nizations to increase their scope and encompass additional activities. The development of big industrial houses with activities in a wide variety of industri4l fields is a typical example of such expansion of activities of organizations.\r\nIndustrial giants have accumulated capacious financial resources and spread out their risks),y branching out into different areas of economic activity. To cope with the changing requirements, such organizations have developed new organizational structure with focus on planning, control and coordination. The managerial systems of these companies are considerably more flexible and dynamic than of the simplified single-product companies. Another facet of expanding frontiers of organizational activities is the spread of corporations outside the national boundaries. These corporations are cognise as multinational or international corporations.\r\n'