Critical Changes and Managerial Challenges

Hello Respected Researchers and HR managers, In this section we will discuss about “Critical Changes and Managerial Challenges“. It is very much important for a Researcher as well as HR Concern person/ manager to know the Critical Changes and Managerial Challenges. If researcher or HR Manager could follow the Points accordingly,it would easier to reach the goal. Let’s have a look…


A number of critical changes and challenges present themselves to diverse organizations today.

(1). Globalisation:

Certainly the emergence of a ‘borderless’ world has had a tremendous impact on the way organisations behave. They are no longer insulated from foreign competition, and this has forced organisations to examine cost efficiencies, structure, job design, human capital, and many other sources of effectiveness and competitiveness.

(2). Technology:

We have seen tremendous technological advances in the last decade, and this has had a significant impact on the way organisations behave. The Internet has enabled small, start-up companies to become global organisations (even from one’s home). But, it has intensified competition for many organisations; it has enabled consumers to become more sophisticated and therefore more demanding; it often requires significant capital investments (and the risk of obsolescence is high); and it can be a great source of stress for employees who must continually adapt to new technologies.

(3). Mergers and acquisitions:

The last number of years have been a time of merging and acquiring for many organizations, seeking to increase market share and profitability. But the complexity of these integrations has had a tremendous impact on employees in newly merged organisation; they often have great difficulty adjusting to potentially conflicted cultures. This has contributed to many failed mergers and acquisitions.

(4). Workplace diversity:

The workforce in today’s new economy is much more diverse, as a result of changing demographics. This necessitates a better understanding of needs and values in the workforce, and careful planning in an effort to provide a work environment that is welcoming and comfortable for all employees.

(5). Organisational structure:

In response to increased competition, many organisations have focussed on cost efficiencies and increased effectiveness. Management has argued that the members must ‘get closer to the customer’ and focus almost exclusively on ‘value-added’ services in an effort to distinguish themselves from the competition.

(6). Work-life balance:

There was a time when managers (who were mostly men) would not consider turning down a promotion. But today, many members in organisations do just that, because they place a much greater priority on personal time – time for themselves, travel time, time for their families. Organisations have responded in a number of ways: allowing flexible work hours, providing day care in an effort to allow parents to be close to their children, encouraging at home offices, and providing for extended vacations and paid sabbaticals.

(7). The rate of change:

Some managers have identified the pace of change in today’s environment as their number one management challenge. Historically, change appeared to be the exception, while stability in organisations was the norm. We could plan change and progress using historical performance as our guide. That is no longer possible, and in fact potentially dangerous.

(8). Increased competition:

Competition has intensified for many organisations over the last decade, primarily as a result of the issues discussed above. Globalisation and technology have facilitated entry into some industries by some organisations, and organisations must compete within a much larger arena.

(9). Increased ethical and social responsibility:

Consumers have access to more information now than ever before, and some would argue that they are more knowledgeable in general about the values and behaviour of the organisations in which they invest. Increased competition has provided consumers with more choices in terms of purchasing products or services. As such, many organisations face an increased need to behave ethically and demonstrate appropriate social behaviour. Unfortunately, not all organisations feel compelled to behave in ethical or moral ways. But they risk being exposed for their negligence, by a whistle blower from within the organisation who wishes to expose the wrongdoing.


There may be some more documents on Critical Changes and Managerial Challenges, this article is written by taking the help from Internet and other resources like Books, journals etc.


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