The Present Business Environment Business Essay

The Present Business Environment Business Essay Business environment is changing drastically in todays corporate world. In early years of current management era manager were suppose to work exclusively with equipments, data and systems; performing traditional tasks. But scenario of management responsibilities has been changed significantly and todays manger faces issues like cross training, personnel management , interdepartmental communication and widening job scope. Role Of Managers Managers run large corporations as well as entrepreneurial start-ups. They are found in government departments, not-for-profit agencies, museums, schools and even such non traditional organizations as political campaigns and consumer cooperatives. Managers can also be found doing managerial work in every country around the globe. No matter where managers are found and what gender they are, the fact is that managers have exciting and challenging jobs. Changes Affecting Managers Job Following are the few well known changes due to which manager job is affecting. CHANGE IMPACT OF CHANGE Shifting organizational boundaries Virtual workplaces More mobile workforce Flexible work arrangements Empowered employees Work life-personal life balance Changing Technology Risk Management Restructured workplace Discrimination concerns Globalization concerns Employee assistance Uncertainty over future energy sources/prices Changing security threats Redefined values Rebuilding trust Increased accountability Increased emphasis on organizational and managerial ethics Customer service Innovation Globalization Efficiency/productivity Increased competitiveness CHALLENGES FACED BY MANAGER Management can be a tough and often thankless job. A portion of a managers job may entail duties that are often more clerical than managerial. Managers often have to deal with a variety of personalities. It can be a challenge to motivate workers in the face of uncertainty. With the fast changing world, we need to cope up with things that could hinder the development of ones managerial skills. Here are the most common challenges faced by manager and how to solve them. Employee motivation:   Motivating the employees and maintaining their morale is essential for every business. However, this is only possible when any grievances of employees are adequately addressed while ensuring the companys interests. This is a significant challenge faced by management, especially in todays economy where the ever increasing cost of living leads to increased employee dissatisfaction, which is difficult to handle when the cost of doing business is rising rapidly. Recruitment:   Hiring the right people for the right job is a tough task. Analyzing the skills required for a particular job and searching through the multitude of resumes to find the perfect match is a challenge for any management. Market changes:   Keeping a constant watch on market trends and evolving the business to adequately match the consumers demands is another challenging responsibility.   ROLE OF GLOBALIZATION A major environmental change that has taken place in the last fifteen years is the globalization of business. The world has become a global village and business has become global in character. Organizations are venturing beyond national boundaries in the pursuit of business opportunities. The emergence of a borderless world has had a tremendous impact on the way organizations behave. They are no longer insulated from foreign competition, and this has forced organizations to examine cost efficiencies, structure, job design, human capital, and many other sources of effectiveness and competitiveness. Responding to globalization is becoming more and more important; this result in redefining business model. Today change is happening at a rate that does not afford organizations the luxury of managing one major change at a time. Today managers are facing two questions because of globalization, how does relentless change redefine the nature of management and the structure of an enterprise? And what role should management play in re-shaping the enterprise? Example Toyota Motor Corporation makes cars in USA and Pakistan, Mc Donalds sells burgers in Pakistan and hamburgers in China, and Marks and Spencers sells products in Pakistan. Every other product sold by Wal-Mart stores Inc. is made in China or Pakistan. ROLE OF TECHNOLOGY Technology has had a tremendous impact upon the global business environment. Communication, transportation and production efficiency are various areas of business which have been enhanced by the development and improvement of technology. As continual enhancements are made, the world continues to grow smaller and businesses have further reach than ever. Computers The most important technological development to impact the global business environment is the world of computers. There are various programs which help maintain records of inventories and shipments. Email allows for instantaneous communication almost anywhere in the world. Besides its speed, email is easily forwarded and retained. The communication in the global business environment is improved with the use of email. The impact of computers on the global business environment is wide-ranging and also includes the Internet, which is a useful tool for international companies. By using the Internet, companies across the world can perform research and learn more about partners and suppliers. Conference Calls and Video Conferencing Conference calls allow people in multiple locations to be involved in the same conversation. Video conferencing provides the same service, but with the added benefit of all parties being able to actually see each other. Both of these forms of communication have a definite impact on the global business environment. With either form of technology, a parent company in China can have a conversation with a raw material supplier in Pakistan and a manufacturing plant in Taiwan. This improves communication on a global scale and enables all parties to understand specific plans and agreements. Shipment Tracking Corporations now have the ability to track shipments virtually anywhere across the world. Global Positioning Systems (GPS) allow accurate tracking. The implication of this technology on the global business environment is the ability to let customers know exactly where their shipments are at any given time. This technology creates secure relationships within the global business field. ROLE OF COMPETITION Competition has intensified for many organizations over the last decade, primarily as a result of the business. Competitors fill a need for business owners by keeping them on the cutting edge. Without competitors, a business would have no reason to keep prices in check. It would create a monopoly which is never good in any society. When two competitors compete for business, the market (customers) are the ones who decide who they will patronize with their dollars. Prices are usually the first element people choose when deciding which business or product to go with. Competitors drive innovation and keep new ideas and procedures moving forward. Imagine if McDonalds were the only fast food hamburger restaurant in the world. There would never be a Burger King to compete. All food would taste bland and boring. ROLE OF ETHICAL AND SOCIAL RESPONSIBILITY Many consumers and social advocates believe that businesses should not make a profit but also consider the social implications of their activities. Social responsibility is a businesss obligation to maximize its positive impact minimize its negative impact on society. Although many people use the terms social responsibility and ethics interchangeably, they do not mean the same thing. Business ethics relates to an individuals or a work groups decisions that society evaluates as right or wrong, whereas social responsibility is a broader concept that concerns the impact of the entire businesss activities on society. From an ethical perspective, for example, we may be concerned about a health care organization or practitioner over- charging the provincial government for medical services. From a social responsibility perspective, we might be concerned about the impact that this overcharging will have on the ability of the health care system to provide adequate services for all citizens. The most basic ethical and social responsibility concerns have been codified as laws and regulations that encourage businesses to conform to societys standards, values, and attitudes. At a minimum, managers are expected to obey these laws and regula- tions. Most legal issues arise as choices that society deems unethical, irresponsible, or otherwise unacceptable. However, all actions deemed unethical by society are not necessarily illegal, and both legal and ethical concerns change over time. Business law refers to the laws and regulations that govern the conduct of business. Many problems and conflicts in business can be avoided if owners, managers, and employees know more about business law and the legal system. Business ethics, social responsibility, and laws together act as a compliance system requiring that businesses and employees act responsibly in society.