Risks are events that may occur during the normal operations, whether they are foreseen or not, and which result in the loss of resources. It is the function of management to adequately analyze the risk scenario and be prepared…
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This experience is of immense help to the management studies and the hospitality industry, particularly in these days of great emphasis on globalization and expanding service industry.
From the days of human existence as food gatherers to the present day global enterprises, mankind faced risks. It is appropriate to say that risk and enterprise go hand in hand. Fortunately, the science of risk management has also been expanding based on the experiences on one hand, and the compelling laws that define an enterprise’s responsibility in the event of a disaster.
Industrial revolution and expanding markets gave rise to increased use of machinery as well as laborers in the production processes, thus multiplying risks. The character and expanse of risks are changing from individuals to communities, from human beings to natural environment, from local areas to global spread and much more. From the relatively simple industrial accidents to the massive disasters such as the nuclear power plants at The Three Mile Islands and the Chernobyl plant, the Bhopal Gas Tragedy, the Exxon-Valdez/BP-Gulf of Mexico oil spills we have witnessed the changing face of enterprise risks. Significant developments in the form of globalization is leading to another kind of risk viz., the financial risk that spreads across the globe in quick time as was witnessed during the Asian crisis of the late 90s and the global meltdown in the past two years. With the emergence of the Internet and information technology, newer kind of risks includes systemic problems, fraud, and privacy issues.
The term risk could mean deviating from the normal course of a particular structure, activity or establishment, as the case maybe, which means it is probable that something could happen and this is within a range, which is from 0 to 100 percent probability. In other words, it
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Under these new rules and procedures, the working environments and their constituent departments are no more individual entities; rather a collective system exists where each member department falls under the umbrella of the organization. These entities are not just limited to the inside ambiance of the organization, rather involves all those elements and factors who have a say and contribution towards the final outcome.
Thus, sustainability concentrates upon the problems related to the present day corporate environment without making any compromise on the problems that could appear in future in the wake of the strategic change adopted by the organization on the one hand, and in the aftermath of alterations in the political, environmental, social, technological, legal and economic fields on the other.
Risk management also encompasses determining the responses for those risks and constantly monitoring the progress. This is a proactive approach since it does not wait for the risks to occur before an action decision is implemented but rather predicts, quantify and acts in advance.
In order to meet these, managers must be well equipped with a range of abilities and skills to ride the wave of organizational development successfully. Underlined below are these key aspects.
Roles refer to an organized set of behaviors. The roles of a manager are diverse and can mainly be classified as interpersonal roles, informational roles and decisional roles (Mintzberg, 1973).
When employees feel personally involved in the formulation and implementation of organization goals, they will get motivated and improve their work efficiency and output. This, in turn, leads to organizational success. Performance evaluation system
Organizations and enterprises are heavily investing in the modern management information systems for the purpose of increasing output, attaining competitive advantage over competitors and establishing effective management and control strategies. Microsoft Dynamics GP
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