The Changing Nature of the Employment Relationship

Business environment is changing drastically in today’s corporate world. In early years of current management era manager were suppose to work exclusively with equipment’s, data and systems; performing traditional tasks. But scenario of management responsibilities has been changed significantly and today’s manger faces issues like cross training, personnel management, interdepartmental communication and widening job scope. Globalization is shaping and re-shaping business environment, resulting in increase of competitors, demand of new sourcing strategies and facing new markets with new demands.

Irregular flow of information often subject to quantitatively strong fluctuations, controlling the flow of information is necessary otherwise these fluctuations can become detrimental. Information controlling is the analysis, evaluation and importance attached to the data that collected and provided with the data under various criteria. Because day by day managerial job is becoming more and more hectic manager needs to continuously look for new ways to improve speed and quality along with reduction in rising cost.

Rising costs is another problem for the managers. Rising in the cost of services and wages is becoming more and more troublesome for managers. In current environment there is no guarantee of the employee’s being loyal to company, then in that case, to get more money employees ask for higher wages. Also there is requirement to keep the cost of services, provided by company under constant watch. If company starts loosing because of rising service cost then mangers put attention to solve this issue.

As complexity of electronic data processing increases, security often decreases. Not only does this pose problems in the form of breaches, it also has legal ramifications with regard to license. This problem especially faced in IT industries. IT companies buy very expensive software and after some months or years new version comes up, then again managers need to change their strategy along with change in technology. Customers may want to change or upgrade to new technology, then managers has to negotiate for the money and services, this may lead to unsatisfactory customer service.

Mainly following are the main challenges faced by today’s managers;

  1. Responding to Globalization: Various forces of globalization are reshaping the business environment generating new competitors and demanding new sourcing strategies and market. In dynamic market situations it’s very hard for managers to predict any concrete goal and strategy for the business development. Short term strategy may work very well but for long term, goal setting is the problem. Again dynamic market conditions of global economy make the profit prediction shaky. No one is able to predict the variations in the profit and losses, business can make. Responding to globalization is becoming more and more important; this result in redefining business model. Today change is happening at a rate that does not afford organizations the luxury of managing one major change at a time. Today managers are facing two questions because of globalization, how does relentless change redefine the nature of management and the structure of an enterprise? And what role should management play in re-shaping the enterprise?
  2. Managing work force diversity: Because of globalization and open market system for business, management has to face diversity in work force. Now a day’s businesses are spread over different cities in various countries. Thus many times not only gender and age diversity, but cultural diversity becomes essential to manage work force. Basically heterogeneity of people becomes challenge for the managers because of variations in the ethics, motives and working culture.
  3. Improving quality and Productivity: Main problem for the management is to decide, what is to produce, how much is to produce and where is to be produce. Management has to decide either to produce different products or to emphasis on one product. Once deciding this, managers have to make sure that the quality of the product is good. It takes long time for the organization to create a market about the product; but if there is any lacuna in quality and productivity then because of high competition it’s become hard for the product to sustain in market.
  4. Improving customer service: Improving customer service is sometimes managers think they will get around to in time. But that time rarely comes. Changes in the requirements or changes in the taste of customers become hurdle in the improvement of customer service. To solve this issue many times managers try to set up scenarios that challenge employees and cover the full range of customer requests. At times management also keep two scenarios running parallel and asks employee to maintain balance.

Along with above problems managing labor force is again a challenge for managers. Now days there is no unwritten contract of being loyal to an organization, because of this many employees seems to be fired from the organization or they leave the organization for getting good salary job. In the absence of contract between employee and organization, employee may decide to leave an organization in the middle of project work. This is very challenging situations for managers to deal with.

To overcome these challenges managers have to modify the working culture. Managers need to be aware of the skills of their subordinates and people under them. Empowering of employees is the best way to get maximum output from them. People get bore because of routine work, then to get more output managers can make changes or innovations in the working style. Along with the challenges discussed above, managers have to make efforts to understand their employees. If managers are able to gel with their employees then only employee will be happy to work with the manager, and he/she will be ready to face or tackle the challenges faced by managers. By knowing employee managers will be in a position to understand the working capacity of employees and allocate the work accordingly. This will also help for the performance appraisal and to know liking of an employee about the job and the work allocated to him/her.