[CONTEMPORARY ISSUES ON BUSINESS

MANAGEMENT]
Contents
INTRODUCTION................................................................................................................................3

CONTEMPORARY ISSUES IN BUSINESS AND MANAGEMENT..........................................................4

STRATEGIC PLANNING VS TACTICAL PLANNING..............................................................................5

EVALUATION OF MANAGEMENT MODEL THAT AFFECT MANAGEMENT PRACTICE AT

MICROSOFT......................................................................................................................................5

Critical evaluation of the Model..................................................................................................7

LEADERSHIP MODEL AND ITS USEFULNESS IN DECISION MAKING.................................................8

CONTEMPORARY ISSUES IN PLANNING FOR BUSINESS..................................................................9

ETHICAL DILEMMAS – MICROSOFT...............................................................................................10

CORPORATE SOCIAL RESPONSIBILITY OF MICROSOFT..................................................................10

MICROSOFT STAKEHOLDER MANAGEMENT AND ANALYSIS.........................................................12

THE STAKEHOLDER MAPPING OF MICROSOFT..........................................................................14

CONCLUSION.................................................................................................................................16

REFERENCES...................................................................................................................................17
INTRODUCTION
The purpose of the assignment is to analyze the ways of thinking and address different aspects
and issues in contemporary management. The critical evaluation of contemporary issues in
organization is essential from the view point of stakeholder. The report addresses the aspect of
CSR sustainability in context to Microsoft (Crane et al., 2019).

In today’s competitive scenario, new technologies are emerging everyday with the rapid growth
and development of industries. The biggest challenge that is faced by the company is to build
effective and efficient manager in order to mobilize tacit knowledge and potential use of
innovation at workplace. Moreover, the report focuses on burning issues in the field of
leadership and modern business (Bereskin et al., 2018).

Microsoft is a multinational corporation in America. The company is engaged in development

of computer software, personal computer, consumer electronics and such other items. The
mission statement of the organization is concerned with empowering people and organization
through utilization of the computing product of the company. Microsoft was founded by Bill
gates in 1975 and is known to be best leader of the software products such as Microsoft
operating system, Internet explorer and such other software (Lins et al., 2017).
CONTEMPORARY ISSUES IN BUSINESS AND MANAGEMENT
Managerial challenges

In today’s competitive environment, organization like Microsoft has to deal with people from
different cultures and behaviors. The workforce diversity is a major challenge before the
business managers at Microsoft (Levy, 2016).

Moreover, the business manager can use aspect to diversity to improve the decision making as
well as improving the overall performance of the team. A diverse set of workforce in Microsoft
ensures provision of better customer service at the global level (Liepiņa et al., 2014). Therefore,
managers at Microsoft must properly manage the workforce diversity for enhancing the
creativity and dealing with the challenges of team dynamics.

Workplace issues & challenges

There are many workplace issues such as employee’s Rights, Unionism and changing
expectation of the employees with respect to the change in demographics (DeszJardins and
McCall, 2014). Therefore, business manager at Microsoft need to take extra precaution to
ensure protection of the employees rights and better management of the workplace issues.

Organizational challenges

There are various challenges faced by the business manager at Microsoft at organizational level.
The increasing level of competition requires manager to implement reengineering programs
and philosophy of Total Quality management. The element of reengineering requires manager
to rethink and redesign the whole process in order to create value for the customers.

Another challenge faced by the Microsoft is to cope up with the rapid changes and
developments in technology and innovations. Besides this, coping with the aspect of
temporariness is essential in order to overcome resistance to change (Liepiņa et al., 2014).
Global challenges

The business of Microsoft is expanded at the global level and business manager requires coping
up with different laws, ethics, styles and management practices. Therefore, manager needs to
adopt proactive approach in order to face the challenges at the global level.

Environmental challenges

The external environment is dynamic in nature and requires continuous adaptation process by
the organization. Therefore, business managers require being responsive towards various
environmental challenges (DeszJardins and McCall, 2014).

STRATEGIC PLANNING VS TACTICAL PLANNING

A strategy and tactics both plays an important role for the survival of the firm in the long run. A
tactics is known as action in order to reach the desired end. These are known as business
moves that are adopted by the business to achieve specific results.

A strategy can be defined in terms of game plan that further helps the organization to achieve
its business mission and objectives. It can also be known as blue print of expected image and
destination of an organization (Mancini et al., 2014).

EVALUATION OF MANAGEMENT MODEL THAT AFFECT MANAGEMENT

PRACTICE AT MICROSOFT
Contemporary issues of management can be handled by framing the way of thinking and be
proactive of the future issues that arises as a result of current practices or thinking (Mancini et
al., 2014). The application of Kotter’s 8 Step change management model can help to deal with
the contemporary issues of management and business.
 Figure: Kotter’s 8 step Model

Source: Mancini et al., 2014

Step 1 – creating an urgency

The potential threat to the organization in the near future needs to be identified. The
opportunities need to be examined and discussion to be made over the ongoing issues.
Therefore, business manager must take active steps to involve the key stakeholders and
customers with respect to the issue of change (Mancini et al., 2014).
Step 2- Building of guiding coalition
This step requires commitment of stakeholders and change leaders for ensuring the
effectiveness of the entire process. A coalition team needs to be formed considering people
from various departments at different levels.

Step 3 – Development of Vision and strategy

This requires determining the core values of the organization and achieving the vision through
defining the strategies for realizing the change in the organization.
Step 4 – Communication of vision
In this step, communication of vision is done in powerful and influential manner. Also, the
business manager needs to handle the issues and concern with honesty and loyalty (Mount and
Anderson, 2015).

Step 5 – Removing obstacles

The change process needs to be aligned with the overall vision of the organization. The
 manager need to do continuous check for barriers that resist the change management process
as well as give reward to the people that support change management.
Step 6 – Generate short term wins
The feeling of victory could be achieved by creating a short term target rather than long term
goals (Mount and Anderson, 2015)
Step 7 – Consolidation of Gains
The success stories of individual experience need to be analyzed for achieving continuous
improvements.
Step 8 – Institute change
The business requires incorporating change into organizational culture and extending their
support to the leaders that support change.

Critical evaluation of the Model

Advantages
 Easy to understand and step by step
model
 More involvement of the employees
for the overall success of change
process.
 Emphasize over acceptability for
change.
Disadvantages
 The skip of any of the step of model
can cause problem (Mount and
Anderson, 2015).
 It is time consuming process
 No scope for participation
 May cause stress and dissatisfaction
among the employees.

LEADERSHIP MODEL AND ITS USEFULNESS IN DECISION MAKING

A leadership is defined as the process of influencing individual’s behavior and motivates them
to work enthusiastically for the purpose of achieving pre determined goals of the organization.
A leader of Microsoft plays an important contemporary role in managing the conflicts amongst
the workgroup team (Conger, 2015). There are two contemporary theories of leadership in
order to handle the issues of the business. They are:

Charismatic leadership theory

Transformational theory

Charismatic leadership

A charismatic leader is extraverted and achievement oriented. He has a vision and ready to take
high personal risk. A charismatic leader possesses such quality and plays a great role in
understanding the mood of individuals (Conger, 2015). A leader continuously puts the active
effort n building the group as well as make the distinct image of the group. An individual leader
at Microsoft can develop the aura of charisma through considering optimistic view and thereby
acting as a catalyst for generation of the enthusiasm amongst the followers.

Transformational theory

This is also known at transactional theory that gives power to the leader to perform task that
leads to the achievement of organizational predetermined goals (Müller, 2019). The business
leader at Microsoft possesses power to give the reward or impose penalty with respect to the
performance of the team. This theory provides support to the leader to evaluate the work of
follower and give them adequate training that would ultimately help in enhancing the
productivity to the desired level.

A transformational leader helps the organization in motivating the team through effective
communication which further supports in the achievement of group goals. The leader at
Microsoft focuses on getting the work done through chain of command and always looking for
innovative ideas for the purpose of achieving company’s vision.

CONTEMPORARY ISSUES IN PLANNING FOR BUSINESS

Panning is the basic function of management. Every business manager plans for making
changes in the industry, micro environment, macro environment, legal and marketplace
(Müller, 2019). There are some contemporary issues that are faced in the process of planning
by business manager at Microsoft:

Legal issues There are uncertainties attached to the legal environment in 21 st

century. The issues like consumer protection, health care,
intellectual property and such other issues have put the legal
industry under pressure. Therefore, business manager at Microsoft
must be well aware of changes and new developments with respect
to local and federal laws. Thereby it is important to anticipate the
legal changes in advance for the purpose of gaining competitive
advantages (Wachowiak, 2016).
Financing The finance can be raised in the form of debt, investment and other
 forms. The business manager of Microsoft put emphasis on aspects
of financing for the purpose of getting advantage. Therefore,
monitoring of the overall business plan is required for identification
of potential funding source in the lending market.
Marketing The marketing manager of Microsoft faces contemporary challenges
so as to gain competitive edge in the marketing. The analysis of
customer taste and preference helps in strengthening the market
position of Microsoft (Levy, 2016).
Technology issues Technology is rapidly changing in the dynamic environment. The
managers at Microsoft must conduct analysis of trend for speeding
up the process of knowing foreseeable future.
Microsoft can use latest development in technology in order to gain
competitive edge over its competitors

ETHICAL DILEMMAS – MICROSOFT

A ethical dilemma relates to decision making problem and complexities arise due to situational
conflicts. Microsoft faced a ethical dilemma in the year 2019 when the company signed
480million dollar deal with US army (Levy, 2016). According to the developer, the Microsoft was
engaged in the development of weapon which leads to concern for the ethical practices of the
company. According to the Contract entered by the company, they were engaged rapid
development of the single platform that allow soldiers to fight, rehearsal and train themselves
to achieve future advantage. Therefore augmented reality system is basically designed in order
to identify the targets and obstacles and thereby help in minimizing the threat. Therefore, the
use of this technology helps the army in keeping them safer and secure.

CORPORATE SOCIAL RESPONSIBILITY OF MICROSOFT

CSR is a kind of self regulating business model that puts accountability on the corporate to be
socially responsible towards stakeholders and public. The responsibility assumes all kinds of
social, environmental and economic responsibility towards the society. The concept of CSR is
important to both company and consumer (Lins et al., 2017).
Microsoft CSR policies are designed in a manner so as to serve the global needs of the
communities as well as fulfill the responsibilities in the best interest of public. The highlights of
CSR program & initiatives taken by Microsoft are as follows:

 The employees of the Microsoft donate $ 158 million to NGO for effective service of
local communities.
 The Youth spark program was initiated by the company that further provides
opportunities to the youth for development of the employment and entrepreneurship
skills. The program aims to empower 300 million young people around the world.
 Design of training and development program by Microsoft for enriching the skills of
employees. Also, 90 % of the Microsoft eligible for various bonus of the company.
 The company had formal commitment in order to respect the human rights (Chawak &
Dutta, 2014).
 Microsoft spend $ 3 million for the enhancing the abilities of minorities, disabled and
women owned business in the year 2018.
 Around 44 % of consumption of electricity by Microsoft comes from solar, wind and
hy7dro power electricity.
 The installation of Air cooling techniques helps the data centers of the company to save
around 20 -30 percent of the energy consumption (Lins et al., 2017).
 The company aims to neutralize its carbon emission at the global level.
 The company hired around 50 people whose major role is to investigate non
compliances of company’s policies.
 The company has more than 365 non-profit organizations across 92 countries in order to
promote social and health well being across the globe (Crane et al., 2019).
 Adherence to the principles of Global network initiatives.
 The company CSR policy focuses on waste management program by way of reusing and
recycles in many cases.
 The 99 percent of the waste of the company is diverted using compostable tableware
from the landfill using recycling technique.
 The active initiative of carbon offset project helps to save lives of more than 7 million
people across the merging nations (Wachowiak, 2016).
MICROSOFT STAKEHOLDER MANAGEMENT AND ANALYSIS
A stakeholder consist group of people who hold interest in a project and are directly influenced
by business outcomes or operations (Zimmermann et al., 2014). There are internal and external
stakeholders in the Microsoft. Internal stakeholder group consists of employees, customers,
investors, suppliers and communities at large who are directly affected by the business
operations. Besides this, external stakeholder group consists of government, NGO, civil society
and other regulatory authorities that influence the activities and conduct of the business.

Microsoft assumes greater responsibility in terms of developing harmonious and mutual

relationship with its diverse set of internal and external stakeholder (Davis, 2014).

Figure: Stakeholder Group of Microsoft

Source: Wachowiak, 2016

The list of stakeholders in Microsoft as follows:

Investors Investors include stockholders, debenture holders and other security

holders. There rights such right to receive dividend, financial information,
right to vote and other appraisal rights are protected and safeguarded by
 the company. Therefore, timely disclosure of material information is
likely to influence the market price of shares of Microsoft.
Employees Microsoft is actively engaged in development and welfare activities of its
employees. The company focuses on building corporate culture so as to
improve the overall performance of the employees. Moreover, Microsoft
implemented career development programs that further ensure
professional growth and job enrichment opportunities. Microsoft
requires all its employees to attend 5 days mandatory training program
that help in enriching the competencies of the employees.
Customers Customers are the key stakeholders of the Microsoft organization
(Anderson & Anderson, 2018). The company strives to maximize
customer by delivering high quality product at affordable prices. This
further help Microsoft to generate higher sale and revenue.
Communities Microsoft is actively engaged in raising the standard of living of the
people that are living in communities. The company serves its community
by way of CSR activities and programs. Microsoft aim to develop
sustainable society through promoting education, entrepreneurship as
well as environment.
Suppliers Microsoft corporation had established and mutual beneficial relationship
with its suppliers. They are engaged with the suppliers that are
committed to maintain fairness, accountability and transparency in the
business. The team of Microsoft conducts stringent process of
accreditation with the suppliers and thereby authorized them to do the
business with Microsoft (Crane et al., 2019).
Environment Microsoft design effective policies and programs so as to become socially
responsible towards the environment. Furthermore, the adoption of
policies, standards and practices at the workplace helps to serve the
environment in a better manner.

THE STAKEHOLDER MAPPING OF MICROSOFT

Stakeholder analysis is a visual tool that helps in categorizing various stakeholder groups
according to the level of interest and power possessed by them. This analysis helps the business
manager of Microsoft to prioritize the interest, opinion and influences with respect to business.
Therefore, stakeholder mapping helps in realizing the potential value of stakeholder for the
organization (Lawless, 2017).

There are different stakeholder group in Microsoft with different expectations as well as
commitments from the organization. Therefore, business manager must try to resolve the
conflict of opinion of stakeholder for ensuring the smooth running of the business (Davis,
2014).

Figure: Stakeholder Mapping

Source: Davis, 2014

Steps involved in stakeholder mapping

Step 1 – Identify relevant groups of stakeholders within the organization (Lins et al., 2017).

Step 2 – Analyzing and understanding different perspective and interest of stakeholders.

Step 3 - Mapping of stakeholder is a visual tool that helps in determining usefulness of the
stakeholder and thereby visualizing relationship with the objectives.

Step 4 – Ranking of the stakeholder according to the relevance as well identification of the
issues (Zimmermann et al., 2014).
CONCLUSION
The report highlights the contemporary issues faced by the business and management. It also
provides learning on strategic plan and tactic plan. Besides this, Kotter’s 8 step change model is
emphasized for evaluation of management practices at Microsoft (Bereskin et al., 2018).

A leadership model is also useful for effective decision making by the Microsoft. It throws light
on the ethical dilemma faced by the Microsoft in the year 2019. The last part of the report
conducts stakeholder analysis of the Microsoft and mapping of the stakeholder according to the
level of interest and power (Chawak & Dutta, 2014).
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