e-commerce as part of management tools and easing of technology transfer. Challenges in managing enterprise-wide production environments. • Revolution of Information Technology – supported by a new world infrastructure of data communications and telecommunications i. . • Increasing demand for knowledge-worker in the knowledge driven organizations. • Security Issues with wide usage of internet platform in business transactions.e.MANAGEMENT CHALLENGES IN THE NEW MILLENNIA (21ST CENTURY) • Impact of Globalization .leads to strategic challenges of mixed cultures and languages in the business environment. use of internet. • Managing Across Borders – the ability of an organisation to survive and succeed in the 21st century transnational workforce and borderless business environment. wireless.

. The defining characteristic of these knowledge workers is the level of their formal education. and to some degree training. will be the central concern of a knowledge society. He argues that knowledge has become the central. According to him.The Knowledge-Worker “These new industries differ from the traditional 'modern' industry in that they will employ predominantly knowledge workers rather than manual workers. the largest working group will become what he calls knowledge workers. key resource that knows no geography. Thus education and development.” ~ Peter Drucker in The Age of Discontinuity (1969) Peter Drucker predicted that the major changes in society would be brought about by information.

freedom of speech…etc • Global Challenges – impact of globalisation and cross-border work culture.e. • Workforce Diversity . • Social Responsibility – The issues of privacy and confidentially. Multilingualism. • Ecological Issues – Oil exploitation and land rights. • Ethical Issues – Understanding the new ethical issues emerged from changes in the social and political landscape and from the development of new technologies.Cultural Awareness/Acceptance (i. climate vulnerability and ecotourism. Individual Differences) . accessibility to technology issues. mining in Africa. property right and ownership issues.Organizations must have a structure that help to unleash the power of their professionals and to capture the opportunities of today's economy. Ethnic Minorities.The Key to Organisation Survival & Prospering in the 21st Century • Corporate Strategy . food security.

1046 1405 629 • -1415 -2461 Male Female Total Source: ONS. – Leisure facilities. crèche facilities (day care). shops. eateries. 1971-2005 (UK) • Change from fixed contracts to more negotiated relationships Large rise in part-time and temporary workers Full time 000s 5 Part time Self-employed • 4173 4 3 2 1 0 -1 -2 -3 1381 776 2792 • Employees demand greater flexibility and work/life balance Office structures are moving towards „club‟ environments – Space for meeting. DTI projections . Henley Centre. PCC 2001.Changes in Workplace Environment Change in Employment Status. etc. dry-cleaning. brainstorming.

or other technologies. such as wireless broadband. cellular / mobile.ORGANISATION CHALLENGES IN MANAGING BUSINESS IN THE NEW MILLENNIA (21ST CENTURY) • Enterprise Mobility: is commonly defined as the process of extending business applications / solutions through the use of wireless technology. which can be wireless LAN (WLAN). .

to create an organisations which support • Improve organisation management (leadership): Eliminating internal competition. training and empowering employees to act on the scene and communicate critical problems without delay and to get rapid organisational response. alignment of measurement and reward systems.ORGANISATION CHALLENGES IN MANAGING BUSINESS IN THE NEW MILLENNIA (21ST CENTURY) • Maintain and contribute to a sustainable socioeconomic environment: recycle waste and control pollution in the physical environment. • Importance of "human capital“: the workers in their cooperative endeavors. .

com .Consumers‟ Trend in the 21st Century Disposable incomes have doubled since 1971 38% would take a pay cut for less stress More affluent Quality of life More educated 35% of 24 year olds are graduates 40% of the population over 50 by 2010 Older More feminised 40% of workforce are women Over half of adults are ‘unhappy with their standard of living’ Less happy More fragmented households Only 1 in 3 households contain a ‘nuclear’ family Fewer children 1 in 4 women born in 1972 will not have children Adapted from: www.henleycentre.

and outsourcing as business strategies and hence. globalization and modern technology have prompted organizations to consider downsizing. • Working under these “conditions” will lead to higher pressure that is burden on professionals within an organisation. high degree of flexibility and availability .those are important key factors that characterize and coin the dynamic work environment of the 21st century. • International competition. making the work environment more competitive than ever before.STRESSFUL ENVIRONMENT • Working on parallel projects. tight schedules and deadlines. increasing global competition. demanding customers and clients. high workload. . no matter if the individual is employed or self-employed. restructuring.

. workers/professionals need to be flexible and able to adjust to the changing conditions.INDIVIDUAL & LEADERSHIP CHALLENGES To bear the pressure and face the challenges.

as well as the digital generation • Sustainability .responding to a changing economy • Diversity .managing an older workforce.managing an extended workforce. etc • Globalisation .leading an internet-based environment • The developing world .protecting today's environment and addressing consumers' needs • Virtual leadership . .INDIVIDUAL & LEADERSHIP CHALLENGES • Generational leadership . and social responsibility. mature workers.leading a workforce comprising ethnic minorities.

• With the unemployment rate standing at 4. • Dealing with a diverse workforce and will find a way to direct these workers toward a common purpose. The pool of such people is running dry.1%. • Change of workplace to „club‟ environment requires HR professionals to have extra skills in determining the design and layout of offices and meeting areas. • Using best practices to create an environment that attracts people and makes them want to stay. will combine to give employees more autonomy over when they work.Implication to HR & Challenges in 21st Century • HR must understand the cultures around the world and think of itself and operate as a business globally. "the type of worker being sought in the new millennium are more skilled or higher educated than in the past. . • Putting together programs that help employees find the right balance between home and work. as well as the change in the traditional workweek and how jobs are defined. • Technology. • Effective handling of company downsizing and retrenched workers.

corporate competency. redefined values. standalone function to a broad. • Human resources is being transformed from a specialized.SUMMARY • New and faster technology. and shifting customer demands are changing the way businesses operate in the twenty-first century. services. • Importance of Global Leadership in the 21st century . • The delivery of goods. and spare parts will be done by ecommerce organizations. • HR policies and program initiatives will have to be responsive to market conditions and global business structures. the population is aging. • In the majority of developed countries.