As you learn of a problem, you can move forward to the next steps to manage the problem. So you know that there are big mistakes that can be made. Politics play a role in business, as there is a balance between free markets and systems of control. The need being filled is sustenance: people need to eat. In its simplest form, corporate ethics is a legal matter. Assimilation should be a shared responsibility, not simply assumed by those in the minority group. This has resulted in large scale interdependence between countries, as specialization (arguably the root cause of globalization) allows for specific regions to leverage their natural resources and abilities to efficiently produce specific products/services with which to trade for another country’s specialization. The figure highlights the primary responsibilities of corporate managers; the upper left corner—accountability—is of particular significance. Majorities in businesses creating a homogeneous culture is also a substantial threat, as company culture is a direct product of the participants (employees). 5 Current Challenges To Operations Management blog header 5 Current Challenges To Operations Management. When working over 40 hours a week, hourly employees are entitled to overtime pay. This evolving outlook on a diverse workplace has ultimately resulted in the recognition and implementation of diversity management and intercultural understandings within organizations, creating stronger and more ethical business practices. Get access to more than a decade of story archives. Following this, recipients place the card face up on the table in front of them during the meeting, referring to it when necessary. Set priorities - Take time to understand what needs to be done, which steps need to be handled first, and how the issue will be managed. In panel A, both companies’ products have the same cost, but Company I’s product has higher value. Groupthink is when many people within the same organization begin to adopt similar perspectives, usually to simplify meetings and minimize discord. Low-cost suppliers find ways to optimize their production and distribution to offer consumers the lowest possible price on one bottle of water. In the U.S., a strong handshake and self-introduction is a polite start to a meeting. There are five steps to managing a public relations issue: 1. As globalization creates higher potential value in approaching diverse markets and demographics, understanding how to manage a diverse community internally is a priority for management. Managing employees responsibly and putting their well-being first is an important step in this process, as is considering the wider implications of opening a new factory that pollutes or selling a highly unhealthy food product. Quality competitive strategies, while related to branding, provide a particular level of quality to capture a specific income or interest demographic. Heath defines the issues management function in the following way: “Issues management is a process for establishing a platform of fact, value, and policy to guide organizational performance while deciding on the content of messages used to communicate with target publics.” Heath (1997), p. 45. 2. Globalization101.org defines globalization as: a process of interaction and integration among the people, companies, and governments of different nations. Sports management is a term that encompasses professional sports, collegiate sports, recreational sports, and health and fitness. 2. Managers must also be particularly aware of the current criticisms of a highly global society, particularly as it pertains to ethical and environmental considerations. Therefore, staying competitive requires the creation of an effectively diverse workplace. It is driven by a reduction in trade barriers, advancements in information technology, and transportation technology. People, goods, capital and … It explores how management accounting (and its research) has developed over time and the future of strategic Economist Milton Friedman makes an insightful observation when he states “…the only entities who can have responsibilities are individuals…A business cannot have responsibilities.” Though this sounds like common sense, it is a fact often overlooked that the only parties capable of acting ethically are those in charge. enhanced mitigation and disaster management based upon the scientific method. As a manager, this means developing a globally aware perspective that lends itself well to the specific geographic needs, values, and customs in which the business operates. Assess opportunities and threats within the context of external factors using the PESTEL framework. However, as the global economy requires businesses to understand varying perspectives, it also necessitates the cultivation of these diverse perspectives internally. Without differences in perspective, companies have little room to expand into new demographics or innovate new solutions. The Mystery Remains CORPORATE GOVERNANCE MGM 4136 CURRENT ISSUES IN MANAGEMENT JULY 2015. Get access to our searchable data center of TOP LISTS. The most substantial threat these communicative barriers and homogeneous tendencies create could loosely be defined as groupthink. In panel C, Company I’s product has both higher value and lower cost (this is the rarest situation). This opportunity, if not properly utilized, becomes a threat as the competition grows more effective at leveraging diversity to create synergy. Environmental concerns are of large importance as well, as the constant energy utilization required for this interchange pollutes the environment and uses high quantities of valuable energy-creating resources. ), while forecasting is more critical for the users/consumers of these industries on the business level. Avoiding the risks of competitive factors demands a strong understanding of operational efficiency (low cost), quality production, differentiation, and competitive advantage —or who you target and whether or not you have a cost or quality advantage (see figure below). As global economics now supersede domestic economics for many businesses, companies must consider a number of opportunities and threats when expanding into new regions or identifying optimal areas for production, sales, or corporate headquarters. Consumers and governments both penalize companies who have a large adverse affect on the environment (or reward those who have a positive impact ). This hegemony can create tension between different groups, ultimately resulting in the smaller groups moving towards the culture of the larger ones to close the dissonance, a practice called assimilation. Keeping pace technologically requires extensive research and strategic analysis of the potential value of acquiring innovations. That is not to say that management has not responded; it has, in two ways: 1. Organizations are faced with a variety of external factors that provide potential opportunities and threats for short-term and long-term success in any given environment. Cost vs. quality: Companies generally achieve either a cost or a quality advantage (very rarely, both). A global economy is, in many ways, enforcing a global culture. No “grand theories” like those we have discussed previously in this module have emerged to address these new challenges. Overlooking these cultural differences can result in miscommunication that may go unrecognized. Pepsi makes both colas and sports drinks, all of which sit on the shelf next to one another. Economic factors are metrics that measure and assess the health of a given economic microcosm within the entire global economy. Though this is only a simplified and small analysis of a complicated issue, it succinctly describes how corporate management saw each echelon of leadership ignore the core responsibility of ensuring ethical standards in lieu of capital gains. From a managerial perspective, the global workplace implies an enormous amount of diversity management. Yes, confrontations—those messy people issues—are probably the single most troubling challenge of the manager job for many people. Companies also compete internally, either developing naturally competitive products or battling for funding based upon unit success. Effective managers in diverse situations have a highly developed degree of cultural competence that empowers them to use careful observation skills to determine what gestures, phrases, customs and values would be most appropriate in a given circumstance. The opportunity cost is precisely these different viewpoints. Issues in Management: Articles from SAGE Business Researcher offers a new collection of timely readings that delve into the latest issues and controversies in management, such as the changing nature of work, the gig economy, and team management in a digital age. Groupthink will often result in the assimilation of dissenting perspectives. At its most basic, ethical behavior can first be derived via the laws, rules, and regulations of the country in which a business operates. For example, bottled-water producers are directly involved in such a framework and thus adopt two basic competitive strategies: low-cost and branding. This dissonance is exacerbated by the global economy, which sees businesses operating within communities towards which they have no dependence or direct sensitivity. Combining BTM with research and development will ensure managers are properly equipped to tackle the challenges of modern-day innovations, leveraging these capabilities to differentiate from the competition and derive stronger margins. Finally the idea of equality became a societal norm that recognizes both the importance and the value of diversity. For example, Dasani brand water costs more than generic store brand water, despite being essentially the same product. High Staff Turnover. For example, in the United States, consumers are becoming more health-conscious. Being mindful of the potential opportunities in a global economy, along with knowledge of how to localize and sidestep the negatives in an international marketplace, can capture large value for effective managers. Benefit Shortfall. You have to connect on an individual level and inspire people to move from “I” to “we.” And you have to build trust by ensuring your verbal communication and your non-verbal actions reinforce each other. Five issues facing business management today, Be Our Guest: A Hotel, Hospitality & Meeting Guide, LSU Football 2020 Commemorative Championship Edition, Franciscan Missionaries of Our Lady University | FranU. Management Yum Brands’ CEO Orders Fast-Food Growth To Go Yum Brands’ David Gibbs discusses a post-pandemic future with multiple drive-through lanes and less dine-in business. Branding, on the other hand, aims to convince the consumer that a higher price point is worth paying based upon the company’s name, reputation, or other distinguishing characteristic. This is important for two reasons: Developing new technologies in-house is particularly relevant to industries on the cutting edge (e.g., semiconductors, green energy initiatives, TVs, etc. We don’t yet have the answers to most of these questions. Politics play a role in business, as there is a balance between free markets and systems of control. Issue management in a project begins with a plan that defines activities and business rules to manage and control issues that arise d… Managers must understand that some processes can be performed universally and internationally, while others must be done in a localized fashion to adhere to each specific region’s tastes and customs. Managers must understand all of these competitive strategies and align them with their perceived strategic advantage to stay competitive. Hot topics: key issues affecting management & leadership in the modern workplace The potential to uncover new competitive advantages through internal development, The capacity to forecast up-and-coming technologies to construct an investment road map that always keeps the competition a technological step behind. Managers now focus on specific aspects of organizational management: operations management, financial management, marketing management, human resourc… If you bring in a new leader, expect a lot of change resistance, especially if … These factors incorporate exchange rates, gross domestic product (GDP), consumer purchasing indices, interest rates, inflation, and a number of other indicators of economic health or direction. On the surface, internal competition involves either direct product substitutes or funding competition (among different business units). Corporate ethics and shareholder desires for profitability are not always aligned, and it is the responsibility of executive management to ensure ethics supersede profitability. That’s why many managers tend to avoid them. Managers must be responsible because businesses as a whole cannot, and this responsibility towards integrity lies at the heart of management. This evolved into a societal change that embraces diversity as both valuable and ethical. An additional, perhaps even more salient issue is the changing earth’s climate that is expected to result in ever-increasing challenges to those charged with mitigation, preparation, planning, and response. Building an environment of ethical transparency is a challenge that managers face. When a customer sees the sports drink and chooses it over the cola, the cola has lost a sale to an internal competitor. BTM can therefore be divided into four elements: While managers are focused upon these four aspects of BTM, they must also keep future growth and technology scaling in mind. Second ranked was patient safety and quality, with government mandates as third (ACHE, 2016). Managers across the board must be aware of the importance of these technological developments, as well as the operational challenges in researching and implementing them. Current Trends and Issues in Operations Management Introduction Operation management is a wide discipline which deals with the management of organization functions effectively. The reason behind the prioritization of technology management is that new, disruptive technology constantly threatens to result in higher efficiency of competitors. Areas like sub-Saharan Africa tend to be more heterogenous than, for instance, states in Europe. Recognizing the potential technologies available to optimize internal efficiency, or to avoid letting a product or service become technologically obsolete, is a large challenge for management. PESTEL Analysis Diagram: This chart illustrates the PESTEL factors an organization faces. Adroit management must also work actively against groupthink, empowering everyone not only to speak but to be brave enough to go against the majority opinion. This can result in a business that creates and promotes a particular culture over other minority cultures, usually unintentionally as a result of numbers. Globalization is the international integration of intercultural ideas, perspectives, products/services, culture, and technology. Varying perspectives and strategies in technology management abound, all revolving around a few simple needs being filled to move the business towards a competitive advantage. Political factors affecting business specifically revolve around taxes, import and export tariffs, environmental and labor laws, potential subsidies, and the stability of a given operational region. Globalization has resulted in enormous cross-cultural relationships, along with high percentages of domestic diversity. Communication is at the heart of diversity management, but not necessarily for obvious reasons. The American College of Healthcare Executives’ (ACHE), annual survey of top issues confronting hospitals, ranked financial challenges as their greatest concern in 2015. Governments levy enormous fines upon companies that pollute beyond given specifications, and consumers are more than willing to switch brands if they perceive that a business is ignoring its environmental responsibilities. (Issues have a funny way of resurfacing when they don’t get resolved.) by Kettering University Online 17 July 2018. Implementing new technology requires retraining staff and eliminating the natural friction that results from making operational changes. Explain the inherent value diversity generates in the competitive landscape and the challenges globalization presents. The concept of operation management introduces the relationship between the operational planning processes and operational basic elements within the organization. Identify potential issues - When you identify a potential issue, you become aware of a current or likely problem based on feedback from customers, employees or vendors. Furthermore, ethics often contrasts with the basic premise of capitalism and the demands of shareholders: profitability. Multinational companies cumulatively employ nearly half of the world’s population, creating a need for managers with a strong international awareness. Leading up to the mortgage-backed security fallout of 2008, banks and investors began to prioritize profitability over ethics. As a result, managers should carefully consider how to best localize products to retain cultural identity in the regions they operate. Business itself cannot be ethical: only the managers and corporate strategists can implement ethics within the framework of the business strategy. This is a significant challenge, necessitating consideration for different tastes and branding strategies during the implementation process. This example illustrates an extremely important point in business: rely on strengths. This chart illustrates the process of moving from an international product to a localized product step by step, making note of the element of production that can be universally applied compared to those that need a localized touch. And then bow following the greeting cultivation of these influencing factors is the intangibles in communication, from in. Terms, globalization is often attributed to rapid technological developments in transportation and communication products battling... 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