Keeping pace technologically requires extensive research and strategic analysis of the potential value of acquiring innovations. By. This trend affords the food industry opportunities to create products that meet this social desire; as a result, candy manufacturers may want want to consider diversification. On the surface, this consensus sounds like a good thing. The Mystery Remains CORPORATE GOVERNANCE MGM 4136 CURRENT ISSUES IN MANAGEMENT JULY 2015. Thursday, May 3, 2018. Therefore, staying competitive requires the creation of an effectively diverse workplace. Building an environment of ethical transparency is a challenge that managers face. Linguistic differences, while certainly a challenge, are tangible and straightforward. In the U.S., a strong handshake and self-introduction is a polite start to a meeting. ), while forecasting is more critical for the users/consumers of these industries on the business level. Discover our cutting-edge journal today! Managers must understand a company’s competitive advantage and build a strategy that takes into account the competitive landscape. Recognizing the potential technologies available to optimize internal efficiency is a powerful asset in management. Explain the inherent value diversity generates in the competitive landscape and the challenges globalization presents. Understanding each of these influencing factors is the first step to addressing them properly. Communication is at the heart of diversity management, but not necessarily for obvious reasons. 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. The last factor in PESTEL concerns legal elements, which can also be tied to the political framework. Get access to more than a decade of story archives. 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. Issues might be previously defined risks, or not. 5 Current Challenges To Operations Management blog header 5 Current Challenges To Operations Management. These companies were hurt by “disruptive innovations” such as the MP3 player and Netflix. Edited by: Nerija Banaitiene. Explain the role of management in setting strategic governance policies that conform to ethical and legal standards. Operation managers face competition from the company across the street, as well as, from across the country and across the world. Managers must also be particularly aware of the current criticisms of a highly global society, particularly as it pertains to ethical and environmental considerations. 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. 2. 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. Current Trends and Issues in Operations Management Introduction Operation management is a wide discipline which deals with the management of organization functions effectively. Few jobs, or even careers, are for life now with the average time spent in a job … In the United States, workers are imbued with very specific rights regarding the risks they take, the hours they work, the breaks they deserve, and the benefits they are provided. Understanding the varying laws and regulations in a given region of operation is critical to avoiding unnecessary legal costs. The impact of business upon the environment is a growing concern, and companies must consider both the social and political segments of PESTEL in conjunction with environmental factors. Because it covers so many aspects of the sports industry, many ethical issues arise. Groupthink is when many people within the same organization begin to adopt similar perspectives, usually to simplify meetings and minimize discord. 2. What you want to avoid is a form of collective project amnesia where issues come up and never get resolved. enhanced mitigation and disaster management based upon the scientific method. In general terms, globalization is the international integration of intercultural ideas, perspectives, products/services, culture, and technology. An example of differentiation might be cereal. Social factors could loosely be defined as a demographic analysis, where specific groups display preferences or tendencies that can be leveraged or that can threaten a given incumbent. Economic factors are metrics that measure and assess the health of a given economic microcosm within the entire global economy. When working over 40 hours a week, hourly employees are entitled to overtime pay. Critics of globalization cite the way in which it motivates an international culture over established domestic ones, as well as the negative environmental effects that result from business expansion. Consumers and governments both penalize companies who have a large adverse affect on the environment (or reward those who have a positive impact ). Managers are the responsible parties in ensuring these are delivered to the employees in an equitable and legal way. 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. Change is an invariable fixture of the universe. Learning new languages or translating materials is a reasonably effective approach to addressing these difficulties. Implementing new technology requires retraining staff and eliminating the natural friction that results from making operational changes. 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. 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. Groupthink will often result in the assimilation of dissenting perspectives. Etiquette for receiving a business card in China requires accepting it with both hands and taking a full moment to read it. Encompassing a macro-environmental perspective, these factors can be effectively summarized with the acronym PESTEL. Globalization Process: This chart illustrates the complementary localizing and internationalizing responsibilities of a globalizing organization. 1. PESTEL stands for the political, economic, social, technological, environmental, and legal influences a businesses encounters as it pursues its objectives. The social movement of living “green” is another example of this kind of macro-environmental opportunity or potential threat. When working in dangerous conditions, employees are entitled to protective gear and training. Uncertainty in the global economy, uncertainty in the credit markets, uncertainty in how new regulations will affect business, uncertainty about what competitors are doing, and uncertainty about how new technology will affect the business—these are just the start of a never-ending list. 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. When a customer sees the sports drink and chooses it over the cola, the cola has lost a sale to an internal competitor. Effective communication is so hard be… Businesses also compete internally, an intrinsically complex issue. This is a significant challenge, necessitating consideration for different tastes and branding strategies during the implementation process. There are four key issues that all project managers must resolve when managing projects, issues focused on ensuring project success, preventing project failures, enhancing project team competencies, and cultivating effective project managers. Globalization has resulted in enormous cross-cultural relationships, along with high percentages of domestic diversity. In panel B, both companies’ products have the same value, but Company I’s product has lower cost. Economic factors are metrics which measure and assess the health of a given economic region or environment. High quality is the antithesis of low cost; instead of efficiency, the strategy focuses on effectiveness, creating the best possible product to capture market share. Globalization101.org defines globalization as: a process of interaction and integration among the people, companies, and governments of different nations. 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