- August 31, 2012
- Posted by: essay
- Category: Free essays
The time of globalization has changed business methods, gave more opportunities and increased competition among companies. In my opinion, the biggest challenge for businesses arising from globalization and changing technologies is the new division of labor ”“ outsourcing, use of multinational workforce and distribution of parts of business to appropriate regions ”“ and the consequent increase of competition and high demands for mobility and quick adjustment to the situation. Nowadays companies that do not react immediately at the changes of the environment and do not think at least several steps ahead of current progress are not likely to succeed. While earlier the businesses had to face challenge only locally or within native country, currently almost in all areas the companies have to compete with their rivals all over the world. In such case, only the large and dominating corporations or smaller companies that are very flexible are able to survive and develop.
In the situation where flexibility and quick reaction to new technologies and ideas are vitally important for business agent, the role of management dramatically increases. Since the main resource of business is still human capital, the adjustment of this resource, proper reorganization and reconsidered management decisions are becoming quite important for any company. Current time is also regarded as “talent crisis” because skilled workers and talented professionals are becoming available for virtually all companies over the world, and to become successful, the company has to offer the best conditions for employees, especially for key people. Managers nowadays have to plan the workforce needs, motivate the existing employees and create room for self-development rather than just fill the empty vacancies as it was before in many companies. In general, the new role of management in the conditions of globalization and changing technologies consists of three trends: dealing with multinational workforce, demographic changes and shortage of skilled workers.