Major Trends and Challenges of Business in Today’s World

The modern business faces multifarious challenges that were not present in previous decades. These challenges range from employee relations to issues of organizational structure. They are caused by a variety of recent changes in the nature of the workplace. The businesses with the pluck and foresight to meet these challenges head on will be the ones to capture the present and future markets. Those that ignore them, and proceed with business as usual, will be at a competitive disadvantage in the long term. The key is to be able to see the large-scale trends shaping today’s business environment and respond to them appropriately. The following section is an overview of the trends and challenges we face today.

Employee Challenges

Resource Management

More than ever before, a company’s success depends on the quality of its employees. This, in turn, depends on the resources expended by organizations for their employees’ well-being, health, education and multitudinous other things. Adding to this, there has been an increase in the legislation protecting employee rights, a greater regulatory focus on employee participation and empowerment, and a greater focus on a two-way basis of employee management. These are, over all, very good things for employees and businesses alike. However, they also entail a significantly larger share of company resources toward employees. Managerial strategy must be geared toward this new model of employee relations without expending so many resources to dull the company’s competitive edge. This requires a delicate balancing act which can only be accomplished by a new breed of managers skilled in optimizing participatory management styles. A long term strategy of management education as given in business schools after candidates crack CAT exam is required toward achieving this end and dealing with the challenges posed by the modern employee.

Employee Enrichment and Skill Acquisition

The necessity for ongoing employee education jumps out as one of the most salient issues. To remain competitive as technology, markets and skill sets evolve with the changing times, employee roles can no longer be considered static. Employees must now be thought of in terms of their ongoing educational life cycle. It is the management’s responsibility to orchestrate and optimize the educational process. This requires, among other things, a collaborative strategy with human resources and coordination with the strategic focus of the organization. Corporate structure has generally not evolved along these lines, therefore massive revamping is necessary to implement this.

Employee Attrition

Another issue involving employees is the tendency of the modern worker to think of his job as a "stepping stone" and as temporary. This is the fault of both the volatility of the market in recent years and the general shift in the nature of work. This tendency is generally at odds with the traditional model of corporate structure, and specifically at odds with the process of employee development: while it is increasingly necessary for organizations to participate in employee education, the risk of their investment walking out the door to a new job is also higher. It takes extremely savvy hiring practices to minimize this employee turnaround, which requires a sophisticated human resources strategy.

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