CONTEMPORARY ISSUES

FACED BY MANAGERS

MUHAMMAD SHAROWER UDDIN

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 TABLE OF CONTENTS

Introduction...............................................................3
Culture.......................................................................3
The Three contemporary issues..................................3
Methodologies based on internet..............................3
The Social Impact of Re-engineering Economics.........3
The Globalization of Service Outsourcing...................3
Conclusion..................................................................3
References.................................................................3

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Introduction

Now a days the word ‘Globalization’ is used a lot. If anyone search for the word ‘Globalisation’
Google turns up 14,800,000 links. during I write these essay. Despite the fact that the word is used
so frequently, it is rarely defined clearly.

Globalization is defined by several authors in several different ways. William K. Tabb(2004) has
defined globalisation as an outcome of advancement of transportation, communication and
information technologies.

As a sense of socio culture , we can distinguish globalization as a global village where all the
countries around the globe has come together to help each other in a more sustainable way with
friendship, mutual understanding and personal exchange.

On the other hand according to G. Rocher , Internationalisation is exchange between nation as the
form of economics, politics and culture. The relations can be comforting or controversial, balancing
or aggressive .In the other way we can say it is the organisation of world on the basis of its fast
paced spread of the business. Such as example to open a new branch to another country or setting
up an industry to a foreign country is known as internationalisation.

Not all countries can take the butter of globalization because some countries are not productive
enough or their product is not as good as to compete in foreign market. So they are lacking behind.
They are loosing their market as well.

The 21st century managers are facing a lot of challenges while operating business in a world where
they are having business interest in other countries. There are several contemporary issues
managers has to take into consideration before entering to a foreign business. Those issues are –

 Culture issues
 Difference in languages
 Retention/Satisfaction/Moral challenge
 Develop and assist those employees who was in foreign assignments

Without the right tools and knowledge it will be extremely difficult for a manager to work in a
globalized world.

Culture

Culture is very important for a manager which should be practiced before entering any foreign
business. Culture can build up a good relationship with a manager and his future employee ,most of
them may be from different cultures .It can build up or break a relationship and could put a company
in millions of losses. Before doing business managers should consider the cultural electives, cultural
imperatives and cultural exclusive of another country. They should have a full idea about what they
are consists of. Things that one must do to keep offending others are known as cultural imperatives.
Things one may participate but not mandatory is known as Cultural electives. The business deal

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which one is trying to get close through is very much helped by cultural electives. There are things
which managers should not interfere in any circumstances is cultural exclusive. Managers also
should have idea of management styles of other countries where they are going to operate which
includes codes of business and accomplishments.

The Three contemporary issues

‘’ In our business environment today, whether private or public, the dominant driving influences are
economical, political and technological”(Green and Ciccotello , 1997)

Our predecessor managers never faced or envisioned the phenomena known as technology which
we are witnessing.

Technology is playing a vital role by causing a swing in the centre of commerce and industry world
and has formed a communal bang in regards to the model of the way of our civilization lives.
Because of the existence of internet this influence in the field of management and Leadership is
crucial. Now a days internet is in the fingertips of each and everyone, it is very common to every
business and even household but once it was thought only for the unique source to the public. Now
business transaction is occurring by sitting thousands miles apart. Definitive confidence is set upon
the capability of strings of hi-tech energy. Many experts care saying that internet should be
regulated by the government because of its high risk of securities.

Methodologies based on internet

The explosion of the Internet created challenges for corporate America that explored areas beyond
the use of Email and file transfers. According to Woods and Scully organizations had no choice but to
reorganize, re-engineer and adapt to the new world of technology as its’ major driver in order to
stay competitive. Some businesses no longer required a physical establishment with the introduction
of E-commerce. Some companies however are both Internet based and have physical
establishments, better known as “click and brick.” For the businesses that no longer required
physical businesses, jobs were eliminated increasing the rate of unemployment but at the same time
drawing out those with specific technological niches. 

The acceptance of the Internet in business proved to be a driver for competition. Other businesses
were forced to adapt their organizations to the use of the Internet requiring re-engineering of their
organizational structure. According to Bill Gates it is necessary for leaders in organizations to adapt
the practices of technology allowing the trickledown effect to take place with subordinates following
the examples of their leaders. This adaptation of the Internet business practice would begin with
Email use among members of the organization beginning with the leader. According to Gates
companies should use electronic protocol as opposed to any type of paper correspondence with
regard to communication (Gates, William 1999) to stay abreast of technology, thus operating more
efficiently, and cost effectively and maintaining the technological edge. Gates’ suggestion is that
organizations should eliminate the use of paper correspondence and use their company Intranet as a

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primary source of communication and dissemination of information. This method has certainly
proven to be more effective as well as efficient particularly with large businesses. 

In general internet has changed the world of doing business has . Decision makers that have adopted
technology are the ones that set new business models redefining business and linking business to
consumers ( Wurster , Thomas 1999). In “Blown to Bits”, Wurster contends that the ability to
connect consumers with businesses by way of the Internet and large amounts of information totally
alters how strategies must be modeled by businesses, as opposed to the old paradigm of seeking to
balance the reach of the mass and the richness of information. According to Wurster this theory is
now blown to bits thanks to the Internet. This is now an information-driven economy, and with the
existence of the Internet, access to this information definitely dictates engagement of business with
economic laws of supply and demand. 

The Social Impact of Re-engineering Economics 

The current impact of the tragedy that occurred on September 11, 2001 has forced practically every
organization in America into a position of reorganization and re-engineering. There are many
displaced workers today as  a result of the economic impact of this tragedy. 

Prior to September 11th, our business world had already begun to re-engineer due to changes in
technology. With re-engineering the job market is swamped by large numbers of displaced
professionals, some of whom have been replaced by temps at a lower rate of pay or their jobs have
been totally eliminated due to downsizing. Many of the workers that have been laid off have been in
the positions they held for many years which puts them quite possibly in a position of having limited
skills in a particular niche area. These employees are now faced with reinventing themselves through
re-education, quite possibly at their own expense and find themselves re-entering an overly
swamped job market. This leaves the displaced employees with a feeling of distrust for Government,
abandonment and job security anxiety (Bennis, Warren 1985). This leaves many workers in a
negative, depressed, hopeless frame of mind and certainly eliminates any thoughts of corporate
loyalty to workers.
There are several ways of redesigning and re-engineering, however workforce reduction strategy is
equivalent to throwing a grenade into a crowded room, closing the door and eliminating a number
of head count. Activities of this nature are usually offers of early retirement, transfers and
outplacement, golden parachutes, attrition, job banks, buyout packages, and if all else fails, the
extreme solution is layoffs and firing (Huber & Glick 1995). 
Green and Ciccotello’ s argues that the widely held of businesses decided to act in response to this
more unpredictable environment by the approach of reducing their functioning leverage. This is
done by eliminating of a percentage of  full-time salaried employees and reduce the fixed costs such
as possessions and plant equipment as well. They have also argue that it always does not give a
good outcome.

Such as example we can say the experience of Honda Motor Company. In the mid-1980’s a volatile
sales environment leaving Honda in a non-competitive situation and they took the decision to cut
permanent engineering staff in response. After that they were not on the go to compete with other
automobile companies who are designer of automobile, they incurred a huge loss in market share
and profit. Still today they are trying to catchup the lost business.

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If we consider about public sector such as the government the outcome of cutting cost too much
could create big issues. Ciccotello and Green states that cut in trained staff and infrastructure in an
endeavour such as the Defence Department could lessen competence and ultimately even damage
the eagerness and willingness of the department. If any situation arises where there are be no quick-
fix option, either by adding fixed costs, or attempting to create a new staff because it will take time
to build amenities as well as to prepare the necessary people to fill such positions. 

The Globalization of Service Outsourcing

Instead of having full time permenant employee companies around the world are searching for
temporary agencies for outsourcing. Now a days full time employees are not a vital asset for a
company. Rather then companies are treating full time employees as a troublesome, costly
asset.With full time employees, employers have the responsibility of providing costly employee
benefits, whereas with temps this would not be necessary.More and more private farms are getting
interested to use temporary staff and cutting permanent staff. Donna J.S.Peterson, and Norm
O’Meara has suggested that the outsourcing attempts focus more on services provided by
competitive markets for the greatest cost savings. 

“The negative side to terminating full time employees is the repercussions that are reactive to the
termination. There are costly severance payments, threats of lawsuits, as well as the costs
associated with  restructuring ”( Ciccotello and Green 1997).

According to Michael Corbett an outsourcing specialist, outsourcing is a central management tool for
the fundamental re-engineering and re-energizing of America's businesses. If corporations are to
compete successfully in today's global economy, the concept of outsourcing must be embraced.
Corbett feels it is this reality that makes outsourcing an exciting marketplace in the U.S. Simply put
this is buying services from external providers at a reduction in cost. The result of this is a self-
sufficient organization that is being replaced by interdependent organizations focused on core
competencies. With 
this new concept, new classes of business-to-business services emerge as exciting opportunities and
new industries entering these markets and providing services. 

Some argue that with outsourcing the fear of companies dominating based on size is eliminated,
however that doesn’t mean that these companies cannot and will not dominate their competition. It
is stressed however that core competencies are certainly the new areas of competitive advantage. 

In Corbett’s eyes outsourcing does however enable executives in these corporations to focus more
on the “what” and less on the “how” of their specific business. For most corporation executives one
of the most compelling reasons for outsourcing is that much of management’s resources and
attention is diverted from other important issues due to the “how” types issues they would have to
deal with if not outsourcing. Any decisions grid locked in middle management creates financial and
opportunity costs that will eventually effect the future of the company. Corbett refers to Peter

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F. Drucker in 1989 as stating that in-house service and support activities are de facto monopolies and
have little incentive to improve their productivity. There is after all, no competition and outsourcing
may be the only way to achieve this in some arenas. 

Conclusion

We can acquire skills but not values and we have to make knowledge work effective and productive.
We have to organisation the information which we are experiencing ,gathering each and every day.
In the past we had a shortage of information but now it is totally overloaded. We have to transform
those data into information. The productivity of knowledge worker should be increase and those of
manual worker should be trained to be more productive.

References

Ciccotello, Conrad S. Major & Green, Steven G. (1997). Government Executive Magazine, “Industry’s
Downsizing Lessons.” (On-line). Available: http://www.govexec.com/reinvent/downsize/0795mgmt

Corbett, Michael F. (1997). Outsourcing: The US Business Revolution. (On-line). Available:

Gates, William. (1999). “ Business @ The Speed of Thought: Using a Digital Nervous System”. New
York: Warner Books Inc.

Huber, George P. & Glick, William H. (1995) “ Organizational Change and Redesign.” New York:
Oxford University Press.

Kotter, John P. (1990). “A Force for Change: How Leadership Differs From Management.” Free Press. 

Northouse, Peter (1997). “Leadership Theory and Practice”. Thousand Oaks, California: Sage
Publishing.

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