Current Challenges

Today, the concept of management is influenced by what happens in the world and society. There are several challenges that exceptional managers need to be attentive to in the 21st century. These challenges include the following:

• Managing a competitive advantage: As managers plan to be more efficient and effective than their competition, being exceptionally responsive by offering an innovative and high-quality product or service is a necessity. Given the global market, customers can choose our competition if we do not offer them a significantly different option.
• Managing diversity: In past generations, it was not common for women and other minorities to go to college. Today, the U.S. workforce is increasingly female, as well as more racially and ethnically diverse. Are there still inequalities in the workplace? Are women and minorities being prevented from moving up the management ladder? This concept is referred to as the glass ceiling. Even though almost half the workforce today consists of women (49%), studies show that only a very small percentage hold top management positions. For example, women currently hold 21 CEO positions (4.2%) at Fortune 500 companies. Also, women earn 78 cents for every dollar that men earn. Additionally, African Americans make up 22% of the workforce, or the largest minority group, while Hispanics (13%) and Asians (5%) make up the next-largest groups (Shropshire, 2015). It is important that a business provide equal opportunity and effectively manage diversity. 
• Managing in a global environment: The political environment in many countries has been changing, which has allowed for an expansion in international trade. This globalization, along with technological innovations, has created what might be called a single global marketplace. In order to survive in this increasingly competitive environment, businesses have had to take radical steps. Restructuring or downsizing by getting rid of positions within the firm has been a current trend. Outsourcing—having another company (usually a foreign firm) perform certain activities that traditionally were done in house—is another popular way to reduce costs.
• Managing using technology: The internet, e-commerce, cloud computing, smartphones, and opportunities for videoconferencing have changed the way business is done. The effect is felt by both employees and customers. Firms need to be agile in offering all stakeholders opportunities to interact and purchase products/services using technology, which allows sharing of data.
• Managing ethics: While technology allows for many great aspects of doing business, it also allows unethical opportunities (like hacking and stealing data) to exist. Technology also allows for worldwide distribution of unethical acts. Think of the 2015 Ashley Madison hacking, which uncovered 32 million people who may have had extramarital affairs, or the 2013 hacking of Target stores, where the breach cost Target $10 million. Managers must be concerned with the ethical actions of both their employees and those outside the firm who may be trying to breach systems (CNN Wires, 2015).
• Managing for sustainability: Companies need to create products that service all stakeholders; this is often called the triple bottom line, as it focuses on people, the planet, and profits. Many companies today offer not only financial reports but also sustainability reports to share what they are doing with respect to these areas. See an example of these reports at Harley Davidson, the motorcycle manufacturer.
• Managing for meaningfulness: Do happy employees make productive employees? Is it absolute drudgery to manage others? Both managers and their employees want to thrive and contribute to the organization. Empowerment provides existing employees with additional responsibilities and tasks, something that is inevitable after downsizing. However, giving employees autonomy along with empowerment can serve many and allow for personal growth and development. Creating opportunities to link oneself and one's purpose to the goals of the organization may allow for meaningfulness to be found.

Many of these challenges will be discussed at more length throughout the course. Consider these issues as you respond to discussion boards and as you prepare to interview your leader towards the end of the class.