Question

Identify and describe a minimum of three major challenges facing today’s and/or tomorrow’s organizations and management? Based on your experience, please provide a minimum of one example for each of these challenges based on personal work experience and/or your knowledge of organizations and society. Be sure to frame your response in the context of the course material and "OB language," using appropriate terminology as covered in the course text.

Answer 1

The business organizations and their management often face challenges in their business operations. The challenges include employee maintenance challenge, cost challenges, and policy implementation challenges.

• Employee maintenance challenge: Employee maintenance challenge is one of the biggest organizational challenges which the management of the organizations faces. The ethical duty of business organizations is to provide sufficient wage and quality treatment to each of the workers properly irrespective of their socio-cultural background. However, the management of organizations often fails to accomplish the employee requirements which becomes challenging for operational objectives. For example- the management of Walmart fails to manage its employees by not providing sufficient employee remuneration.
• Cost challenge: Cost challenge determines the ineffectiveness of management to handle service and production cost. The inability to analyze bargain power and buying capabilities of consumers results in a cost challenge. The management of an organization fails to set up a certain price of a product or service while facing cost challenge. For example- Starbucks is presently facing cost challenges due to its high product price. The price of Starbucks coffee products often goes beyond financial capabilities of low and medium income consumers.
• Policy implementation challenge: Policy implementation challenge is faced by business organizations while management fails to implement the pricing, supply chain, marketing, and sales strategy properly. These challenges arise due to- incapability in adopting updated technology, incapability of analyzing existing resources and inability to maintain organizational culture. For example- Woolworth Inc is presently facing challenges to implementing its supply chain policy due to its inability to analyze its existing resources and incapability to use proper technology for supply chain management.