The top three challenges managers face in todays working environment: Shrinking budgets, Workplace diversity and Unethical behavior.

Running head : Management Challenges

Management Challenges

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Management Challenges

Shrinking budgets

Shrinking budgetary allocation is common in many businesses , which can be caused by external factors such as lack of profit , or internal factors such as a deliberate decision to cut costs . Whichever the cause may be , people tasked with the management of a business should learn how to deal with such eventualities . A choice has to be made and a strategy undertaken in to ensure that the business would not only survive but

even succeed in its venture

Shrinking budgets are nothing more than challenges on the management of scarce resources (Tjosvold Poon , 1998 . Contrary to instinct and common belief , shrinking budgets do not hinder the productivity of an organization . True , shrinking budgets do demand more efficient actions and grounded decisions , but they also push managers into performing better

Tjosvold and Poon note the opinion of researchers on organizational power and politics to the effect that conflicts over scare resources intensify competition (Tjosvold Poon , 1998 ' They also claim that conflict over scarce resources lead to effective distribution of resources

The scarcity of resources brought about by the shrinking budget can be productive because of the demand to step up to a higher level . This breeds a sense of competition in the team , which pushes people to work harder to produce better output (Tjosvold Poon , 1998 . On the other side of this perspective is one that denies the usefulness of competition (Tjosvold Poon , 1998 . This side emphasizes cooperation among members of a management team in to come up with a business plan that manages the effects of the lowered budget (Tjosvold Poon 1998 . Thus , shrinking budget could lead to unity , cooperation relationship development and organizational power theorizing (Tjosvold Poon , 1998 . Thus , taken in the proper perspective , shrinking budgets could actually raise productivity to a higher level (Tjosvold Poon 1998

Workplace Diversity

Diversity is another aspect of business management that has caught the interest of many practitioners and researchers . Generally , the widely held opinion is one in favor of various kinds of diversity in the workplace , such as gender and cultural diversity (Miller ,1999

For example , promoting gender diversity in a business organization is now being considered as an effective way of building good human resources . Women are often seen as a minority in various business firms since they occupy a small percentage in a corporation 's workforce (Miller ,1999 . However , present changes are reversing this trend through the increased hiring of women in business organizations (Miller ,1999

The policy towards increasing the number of women recruits in business and professional organizations is a positive and bold move that is directed towards removing undue discrimination in the professional setting . Provided that the woman applicant possesses the qualifications required by the available position , there is no reason to choose a male employee possessing the same qualifications over a female employee , if such decision is based solely on the applicants ' genders . Thus simultaneous with the recognition of...