The Problems Facing Business Managers of Todays Economy - Essay Example

Management Issue Paper This paper attempts to present in an objective and neutral way the problems facing business managers of today’s economy. As one begins to plan his business, he has to be alert of the challenges he is possibly to face along the way. Some challenges may be controllable, and others may be complex to handle. The best way to deal with obstacles like these is by getting prepared with the information needed, then finding ways to turn the situation into an opportunity by drawing on support from other people or finding a unique solution. What everybody can probably consent on is that there are several outstanding issues facing business managers today, irrespective of whether they are running on a multinational organization or a one man plus company (Christiansen 172). Companies today place multiple demands on leaders, requiring them to make difficult decisions, impart vision and initiate change. Managers should be adaptable and flexible to handle these demands. Several business companies have one challenge seen to be the main one in business, for example, leadership. Leadership Strongest teams comprise of a variety of workplace personality types from leaders, doers, thinkers and nurtures. Whilst no one category is enhanced than the other, a team works best when mutual respect and genuine, balance for different working styles are present, and it takes a spontaneous and a strong leader to make all these personalities work acceptably together (Christiansen 174). There is no doubt that leadership methods too vary extremely, and some of the successful business leaders of the world’s niceness, go unnoted, for example, Thomas Edison, Steve Jobs and Henry Ford. The good news during a recession, however, is that, according to Daniel Goleman, a psychologist, those managers most likely to triumph during difficult times are those with empathy, tough social skills, and those with the ability to inspire skyscraping performance in others. Goleman’s conclusions to three main qualities to success came after his studies of understanding leaders (Christiansen 182). The three qualities are social awareness, emotional self-control and empathy. A survey among FTS350 organizations by the CBI issued in November 2011 discovered that of the 122 corporate managers who took part, 70 percent said that their confidence level in the economic viewpoint had fallen in the recent 3 months; however, only 30 percent of them believe that their company’s projects have deteriorated. Fifty-seven percent thought their prospects had remained the same and 11 percent that they have improved (Christiansen 190). The solution to such leaders is social awareness and empathy. Leaders need these to recognize that their partners may feel anxious by these doubtful times. Communication is a substantial part to the way out. They need to put into consideration that, holding regular update meetings with their team where they converse company targets and outcome, and progress on different proposals, larger organizations should consider making regular posts to the company intranet (Christiansen 194). Below are some of the other challenges faced by business managers of today’s economy. Lack of management skills In most medium and small enterprises, lack of management skills is difficult to deal with, as the size of the senior management team becomes necessarily limited. Such areas of weakness could be in human resource, marketing, finance or any part where the present management does not have the knowledge or the time to tackle the issues (Merlyn & Parkinson 43). The solution to this problem is by resolving the weak areas, and then arrives to a plan that deals with those challenges. Assigning the responsibility to an existing manager to observe the obvious pitfalls, to employing a consultant or a part-time person, can serve as a solution to this matter. Lack of capital This is the most often-critical challenge that a successful leader or manager faces as its precise success creates this, and it becomes a vicious circle quickly. Without a diligent money flow management and/or increasing of more capital, together with debt, the business habitually becomes constrained by capital as it develops (Merlyn & Parkinson 387). Often the income in one operating cycle is not enough to fund the working capital essential for the subsequent operating cycle. Many competent managers cannot overcome the hindrances in their businesses cycle of money flow, and fail to understand why other lenders and bankers often cannot give the finances, as the manager regularly lacks the security to support the debt. The solution is regularly easier than nearly all entrepreneurs realize. It starts with a plan to see what cash needs a manager requires and when his cash needs arise (Merlyn & Parkinson 54). The manager has the authority to handle the cash and focus on its management techniques likely to be successful in his business. Organizational direction Management members within the organization are characteristically the decision makers, and as such, they decide on the direction of the organization. The management can either provide the impetus for change and drive innovation within the organization or maintain the status quo. Organizing resources and planning is the work of the managers (Merlyn & Parkinson 4). They determine the direction of the organization must take to achieve success and must take the decisions required to make that happen. Solution Modern business world’s managers normally use tactical management to tackle most of the serious issues facing today’s management. Planned management is a purposeful decision-making method used to identify organizational direction and execute the necessary procedures and policies to move the organization to the desired direction (Milgram, Spector & Treger 325). The strategic management process begins with a concise and comprehensive mission proclamation that concludes on a definite trend, followed by the processes implementation designed to align the daily activities of the corporation with its mission. Hiring the right people No matter how much employees are, managers get occasional turnover, and if their organizations are successful then they will find out that their headcount and budget will grow as they assign themselves more and more responsibility (Tucker 62). Either way, they will have to hire more employees. Hiring is easy but hiring the ideal employee is extremely difficult. The solution to this is to get an understanding of an employee’s actual performance at the duty/duties assigned to him-not just how the employee does his interviews. Conclusion Management is complicated, and it requires motivation and skill, but mainly, it necessitates commitment needed to overcome all these challenges. Works Cited Christiansen, J. A. Competitive Innovation Management: Techniques to Improve Innovation Performance. Basingstoke: Palgrave Macmillan, 2000. Print. LASTErnst & Young, Merlyn V., Parkinson J. Development Effectiveness: Strategies for IS Organizational Transition. Hoboken: John Wiley & Sons, 1994. Print. Milgram L., Spector A., Treger M. Managing Smart: 325 High-Performance Tips Every Manager Must Know. London: Routledge, 1999. Print. Tucker, D. E. Using the Power of Purpose: How to Overcome Bureaucracy and Achieve Extraordinary Business Success! Bloomington: AuthorHouse, 2008. Print. Read More