Challenges Faced by Managers

Challenge # 1. Globalisation:

Almost all home companies face the challenge of competition with their
international counterparts. Small retailers, big manufacturers, all are competing with the
international products. It has resulted in greater complexities, greater economic and political
risk and uncertainty. The problems of internationalization are faced in the fields of goods and
services, finance, human resource and advertising.

Challenge # 2. Quality and Productivity:

Companies compete with international competitors with respect to quality and productivity of
goods and services. Successful companies have been able to maintain and enhance the quality
of goods and services with fewer resources (productivity). Managers must, therefore, focus on
producing more and better with fewer resources. Quality and productivity are important
determinants of business that affect its success.

Challenge # 3. Ownership:

Another area that concerns managers is ownership. Large foreign investors are buying stocks
of home companies and ownership can be transferred in their hands. Profitability and
productivity, thus, may suffer.

Challenge # 4. Environment:

Environment is changing at a fast rate. Organisations have to change with the competitive
environment to maintain their customers. Managers should develop deep understanding of the
internal and external environmental factors and their application to business operations.

Challenge # 5. Strategy Formulation:

. Strategies keep changing according to environmental changes. Strategic management is a way

of approaching business opportunities and challenges.It keeps managers constantly involved
and promotes healthy interaction between the organisation and the environment. Managers
who frame effective strategies will remain in the market. Strategy formulation, therefore,
requires constant attention of contemporary managers.

Challenge # 6. Ethics and Social Responsibility:

Firms which do not adhere to ethical standards and social responsibilities are not accepted by
the society. It is, therefore, a challenge for managers to define relationships with the social
environment.

Challenge # 8. Change:

Change is a continuous process. If firms want to compete in the complex, dynamic and diverse
environment as they are facing today, where expectations from managers and their
organisations are on an ever increase, they must accept the changes that confront their every
day life. Managers have to continuously respond to change and look to future with hope and
optimism.

Challenge # 9. Empowerment:

Though management is ‘the art of getting things done through others,’ the others/subordinates
will not do things if they have to merely carry out the orders and instructions of managers.
Workers want more information about the organisation to perform and control their jobs.
Communication is a major task of managers today..The basic requirement, therefore, is to
communicate with the external environment and their workforce.

Challenge # 10. Information Technology:

Information is an important part of communication and managers have to be careful in

selecting the amount and type of information (out of the large quantity of information
available) for carrying out the business operations. Lack of control over use of information can
result in lack of control over business operations.

Managers have to carefully collect the right information, use it effectively and ensure that right
information is leaving the organisation to enter the environment.