Factors Contributing to the Challenges of Managing People, How Managers Can Overcome the Challenges - Essay Example

Management (Insert Name of the Student) (Insert Name of the Instructor) (Insert Name of the Course) (Insert Code of the Course) (Insert Submission Date) Introduction Managing people is at the heart of every organisation. Effective managers are those that are able to balance employee expectations and that of the company. The world is moving from an industry-oriented economy to a knowledge-based economy. There are more mergers and acquisitions than in the last century and employees are seeking employment opportunities in foreign countries. Complex management hierarchical structures are being abandoned and flat structures adopted. Technology has made it easier for people to carry out duties without necessarily being present at the workplace. These are some of the reasons managing people has become such a constant issue in modern workplaces. This paper explore factors contributing to the challenges of managing people at the workplace, relevance of previous theories in understanding these challenges, ways in which managers can overcome such challenges, and reasons why this information is important for managers. Factors contributing to the challenges of managing people Changing employee expectations The current workforce is comprised of various generations whose values and expectations at the workplace are completely diverse. There are those who entered work in the 1950’s and 1960’s known as veterans who are currently at the helm of most organisations. These employees tend to be very loyal to their organisations. The boomers aged between 40-60 value career growths. The generation Y between 25-40 years on the other hand are more concerned about the balance between work and life issues (Buhler, 2010, p. 8). Managing such diverse expectations is quite a challenge and especially the generation Y who form the bulk of the organisation. Bibby (2001, p. 30) in a study about the perceptions of a good job by generation Y found out that 86% want a job they have a passion for, 76% want one where they can get an accomplishment feeling, 63% want a friendly workforce, and 59% want one where there is corporate social responsibility. Only 57% consider job security and 66% pay as their motivation in seeking a good job. The employees currently are looking for more fulfilment in their personal life as opposed to traditional pay. Money and promotion is no longer the prime motivation factor and this poses a challenge to the management of seeking new ways to motivate their employees (Cartwright & Holmes, 2006, p. 200). McDonald (2011, P. 802) asserts that this may be attributed to growing up with stressed out boomer parents. Hierarchical structural change Traditionally there has been a tall vertical structure with multiple layers of structure between managerial levels. However, in the modern era there is a tendency to adapt a flatter or horizontal managerial structure. As McDonalds (2011, p. 800) points out, the traditional hierarchy had a well-defined job structure and description from top management to the lowest level employee. Traditionally managers held the power as opposed to the current flat structure that is more concerned about employer-employee relations than authority. There is less competition and the rise of intra-organisational networking. Subordinates no longer have to send information up the corporate managerial structure and wait for weeks before they get feedback. They can now walk into the CEO’s office and expect direct feedback instead (Allen, 2011). This means that the managers have less power in the organisation and group work is encouraged to individual work. This also means that the management faces the challenge of finding effective communication avenues without appearing too bossy and at the same time maintain their authority. On the other hand, employees are not equally motivated. There are those who will hide under the group’s shadow by avoiding personal responsibility. The management has to have regular motivation drills to ensure cohesion in the workforce (Aquinas, 2009, p. 221). Technology The trend towards a virtual environment is creating a challenge in two ways. One, the employee no longer has to be present to perform a task because they can carry out the task at the comfort of their home and then telecommunicate. Secondly, the information age is shifting focus from low-value addition in physical work to more value addition in knowledge work (McDonald, 2011, p. 798). The virtual environment created by digitalisation no longer requires one to be physically present at the workplace as traditional hard copy mail get replaced by e-mail, landline phones by mobile phones, on-line video chat programs such as Skype (Mackenzie, 2010, p. 529). Technology is slowly eroding the traditional face-face communication between managers and the employees. Mackenzie (2010, p. 530) asserts that business communication through traditional means is quite a challenge but it is even more challenging when you cannot meet physically. Handy (1995, p. 40) questions the possibility of trusting an individual whom you are separated by geography. Though it is possible to see each other via video chats, it becomes increasingly difficult to maintain group cohesion. A virtual environment may also make the employee feel irrelevant in the institution (Mackenzie, 2010, p. 531). Martin (2012, p. 325) asserts that technology reduces the feeling of community and alienates emotional bonding. In addition, virtual interaction may not always be the best because it is reliant on connectivity. Poor internet connection may delay important decisions for reasons that are beyond their control such as server breakdown. The internet also poses the disruption of work challenge. Bad connections via Skype for example may make the employee shout as he tries to be heard on the other end and thus disrupting others. The manager expects the employee to respond to company email, phone calls, answer Twitter, and Facebook chats directed at the company and still work on his core responsibility (Allen 2011). It also poses the threat of employees engaging in friendly chats rather than concentrating on their work. Technology adoption enhances efficiency in production while reducing lead-time and wastages. However, its adoption also leads to laying-off workers. There is friction created between the management and the employees once talks of adopting new technology emerge (Mitala & Pennathur, 2004, p. 296). Managing such a workforce can be very difficult. New technology also means the training of workers and is dependent on the worker’s level of motivation. Mitala & Pennathur (2004, p. 302) point out that the American industry workforce is facing deskilling and is not able to assert its competitiveness in the global market. Globalisation Globalisation has brought forth company mergers and acquisitions in the wake of increasing global competition. Such changes lead to company restructures that more often lead to downsizing of the workforce. These changes cause anxiety and job uncertainty in employees, as they are not aware of their job security (Cartwright & Holmes, 2006, p. 199). Globalisation is also characterised by free access to varied information and rapid expansion of the service sector with increase in outsourcing labour. Cartwright & Holmes (2006, p.200) estimate that 80% of the European employers use casual labourers. The increase in the number of non-permanent workers means that the management have minimal control over their workforce because they may leave at their own pleasure. Liberalisation of the economy due to globalisation has also enabled most firms to become multi nationals. This has increased the number of expatriates deployed in foreign markets. This means that the human resource managers have to learn new management methods as what works in their countries may fail in other countries. Expatriate managers working in a New Guinea firm realised that there was an increased number of accidents caused by drivers of large tractors. After investigation, they found out that the drivers used to chew a local nut known as betel. They attributed the chewing to the accidents relating it to antidepressants. Consequently, they banned chewing of the nut during work hours and introduced coffee at loading stations to replace the nut. The managers were later to realise that the local chewed the nut for the same stimulant effect coffee had on the expatriates (Dowling, Festing & Engle, 2008, p. 12). This example shows the challenges that managers get due to globalisation. Ways in which managers can work to overcome the challenges The first step in managing people in a cross-cultural environment as influenced by globalisation is acknowledging the differences and similarities in the cultures. The managers should then try to understand the different cultures for example through training. They should aim to have a global mindset that enables them to adapt effectively to other cultures different from their own (Lane et al. 2009, p. 6). A global mindset does not only understand multiple cultures but also shows a willingness to change one’s way of thinking and doing things. The managers then need to engage in more human resource activities than they would in their home country such as international relocation and orientation and foreign language translation (Dowling, Festing & Engle, 2008, p. 5). Lastly, they should engage more in the lives of the impetrates to help them absolve into the company with ease. Nestle S.A a global food company expects its managers to move into new markets every three to four years to gain a global mindset. The managers at the head office speak at least three foreign languages. Such efforts ensure that they are able to manage the over 80 nationalities represented at the company (McDonald, 2011, p. 803). To manage the laying-off of workers caused by technology, managers need to identify the limitations of technology of technology and that of humans. Technology applications should therefore be adapted to cover up the limitations in such a way that technology complements human activities rather than compete (Mitala & Pennathur, 2004, p. 304). Managers should also train their current employees to adapt to the new technology rather than lay the off and employ competent ones. Managers will also need to adapt Just-In-Time systems where information is available at the exact time as required. Faster internet connectivity will enable this to happen. Managers should also allow virtual environments to exist rather than suppress them. A case study of Oticon-a hearing aid manufacturer reveals this. The company has deployed hi-tech movable work trolleys for desks that enable the employees to form groups by pushing their trolleys around as necessitated by group assignments. They can then easily disband the group by pushing them back to their designated workstations. This creates a sense of community in a digitised work environment (McDonald, 2011, p. 800). Managers can manage flat hierarchical structure through effective communication to the employees. The management needs to foster trust between them and the employees such that both feel at ease to approach each other (Bardia, 2010, p. 30). To build on trust, managers should adapt an open door policy, encourage face-to-face communication, be fair and consistent with the employees, interact with them after work hours, listen and adapt their ideas, show friendliness by sharing personal stories and challenges, set-up a good example about work ethics, set expectations, check performance and communicate any issues arising (Mackenzie, 2010, p. 535). By doing so, the employees are able to respect the authority of the managers in a friendly way rather than the traditional bossy way. W.L Gore and Associates a famous fabric manufacturer adopted a flat managerial structure by addressing four core values; encouraging consultation before making a decision that may affect the organisation in a major way, use of the freedom to develop, making and keeping personal commitments, and practicing fairness at all times. The example of Google Inc. can provide a relevant example to managers in managing the changing expectations of employees especially generation Y. 30 years is the average employment age. They encourage employees to develop new ideas by giving them 20% of the work time to work on individual projects of their choice. They have hired a gourmet chef to provide free staff meals, put up table tennis tables, basketball, and volley ball courts where they encourage employees to cool off. Workers can also move around the company in miniature trains and scooters. The employees hence view the workplace like a home and are motivated to give their best (McDonald, 2011, p. 803). Relevance of previous theories in understanding the challenges Geert Hofstede theory of individualism, collectivism continuum and power distance can help explain globalization and the challenges it exposes managers. Hofstede carried out a study in 60 countries examining the attitude and behaviours of managers and employees. He found out that the behaviours and attitudes of both vary as influenced by different cultures present in their countries (Griffin & Moorehead, 2009, p. 31). Individualism in individuals helps them identify with themselves as opposed to groups or organisations. This reflects in their work environment where rewards such as promotion are for individual skills and competencies. Cultures that identify with collectivism on the other hand, are more loyal to groups and organisations and group work is preferred to individual work. Individualism culture is more evident in the Western culture and collectivism in the Asian culture. Managers working with people from these cultures need to appreciate the differences and change accordingly. Max Weber’s theory on economy and society may help understand the challenges of decline in the traditional hierarchical structure. In his work, Weber advocated bureaucratic principles that involved the traditional vertical hierarchical structure. It was management by rules, job specialisation, and impersonal relationships in the work place (McDonald, 2011, p. 800). This theory produced results then and has been adopted by many firms especially those that have been in existence beyond the last two decades. Failure to adapt integrated managerial systems or slowness in adaptation is the major cause of the managerial challenges. Frederick Taylor in the scientific management approach can explain the challenges managers are facing concerning technology and the changing employee expectations. Taylor advocated for clear-cut boundaries between the managers and the employees and he emphasised individual work and the need to oversee the employee’s work during the performance period. Managers following this theory are facing challenges in adapting to the virtual environment where boundaries are no longer there and it is difficult to oversee their work when they work away from the office (Singh, 2008, p.89). Reasons why this information is important to managers Globalisation and technology are the main driving force for change in modern workplaces and are here to stay. Managers have no option but to adapt to the changes. The information will help managers understand the factors contributing to challenges of the workforce and they can change accordingly. The paper also provides examples of companies that have adapted new managerial changes that are working and therefore other managers can use the information to tailor it according to their needs. Conclusion Globalisation has changed the way people carry out their businesses. Through mergers, acquisitions, and setting up of multinational companies, more employees are finding work placements in foreign countries. They are posing challenges to the employers in managing such dynamic cultures. The hierarchy is changing to flat, as the bureaucracy is broken down to a more efficient friendly approach. The employees expectations have changed from work oriented to a personal fulfilment journey. Managers will therefore have to adapt fast to these changes. References Allen, D 2011, The modern workplace: flat, flexible and wired up, Wetfeet, viewed 28 May 2013, < https://www.wetfeet.com/articles/the-modern-workplace-flat-flexible-and-wired-up>. 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