Contemporary Issues on Management

Contemporary Issues on Management

Management is the process of planning, organizing, leading, and controlling the resources and activities of an organization to achieve its goals and objectives. Management is a dynamic and challenging field that faces various issues and problems in the changing and competitive environment.

Contemporary issues on management are the current and emerging topics, trends, and challenges those managers have to deal with in the dynamic and competitive business environment. Some of the contemporary issues on management are conflict management, talent management, corporate governance, corporate social responsibility, innovation, and workplace privacy. These issues require managers to think critically and creatively, and to adopt ethical and sustainable practices. 

Contemporary issues on management also reflect the changing expectations and demands of the stakeholders, such as customers, employees, shareholders, regulators, and society. Therefore, managers need to be aware of and responsive to these issues, and to develop the skills and competencies to manage them effectively and efficiently.

Conflict Management

Conflict management is the process of identifying, analyzing, and resolving or reducing conflict in a positive and cooperative way. Conflict management aims to achieve a win-win outcome for all the parties involved, and to enhance the relationship, communication, and collaboration among them.

There are many definitions of conflict management given by different scholars and experts. Here are some of them:

Thomas and Kilmann: Conflict management is “the process of limiting the negative aspects of conflict while increasing the positive aspects of conflict. The aim of conflict management is to enhance learning and group outcomes, including effectiveness or performance in an organizational setting”.

Folger, Poole, and Stutman: Conflict management is “the variety of activities undertaken to address matters of contention or to keep them from getting worse. Conflict management includes efforts to prevent, contain, resolve, or transform disputes”.

Features of Conflict

Conflict has some distinctive features that make it a unique and complex phenomenon. Some of the features of conflict are:

1. Involvement of Two Parties: Conflict involves at least two parties, who have different or incompatible interests, values, or goals. The parties can be individuals, groups, or organizations, and can have a formal or informal relationship with each other.
2. Creation of Struggle: Conflict creates a struggle or a tension between the parties, who perceive each other as a threat or an obstacle to their desired outcome. The parties try to influence, persuade, or coerce each other to achieve their own interests, values, or goals, and to prevent or hinder the other party from doing so.
3. Outcome of Poor Coordination: Conflict is often the outcome of poor coordination or communication between the parties, who have different or insufficient information, expectations, or assumptions about the situation or the other party. The parties may also have different or conflicting styles, preferences, or approaches to the situation or the communication.
4. Change According to Situation: Conflict is not a static or fixed phenomenon, but a dynamic and variable one. Conflict can change according to the situation, the context, or the environment, which can affect the intensity, duration, or scope of the conflict. Conflict can also change according to the behavior, attitude, or perception of the parties, which can affect the nature, direction, or outcome of the conflict.
5. Positive and Negative Impact: Conflict can have positive and negative impact on the organization and its members. On the positive side, conflict can stimulate creativity, innovation, learning, and improvement, and can enhance the quality, diversity, and effectiveness of the decision-making, problem-solving, and performance. On the negative side, conflict can cause stress, frustration, anger, and dissatisfaction, and can reduce the trust, cooperation, and cohesion of the organization and its members.
6. Unavoidable: Conflict is an inevitable and unavoidable part of the organizational life, as the organization is composed of diverse and interdependent members who have different or competing interests, values, or goals. Conflict cannot be eliminated or ignored, but it can be managed and resolved in a constructive and beneficial way.

Sources of Conflict

Conflict is the disagreement or opposition between two or more parties over their interests, values, or goals. Conflict can occur at any level, stage, or aspect of the organization, and can have positive or negative effects on the performance, productivity, and satisfaction of the organization and its members. Therefore, managers need to understand the sources or causes of conflict, and identify the level or type of conflict, in order to manage and resolve conflict effectively and efficiently.

a. Interpersonal Conflict

Interpersonal conflict is the conflict that occurs between two or more individuals who interact with each other in the organization. Interpersonal conflict can arise from various factors, such as:

1. Personal Differences: Personal differences are the differences in the personality, traits, characteristics, or preferences of the individuals, such as age, gender, culture, education, etc. Personal differences can cause conflict when the individuals have incompatible or conflicting styles, approaches, or behaviors, or when they have stereotypes, prejudices, or biases towards each other.
2. Information Deficiency: Information deficiency is the lack or insufficiency of the information or communication between the individuals, such as facts, data, feedback, etc. Information deficiency can cause conflict when the individuals have different or unclear expectations, assumptions, or perceptions about the situation or the other party, or when they have miscommunication, misunderstanding, or misinformation.
3. Goal Differences: Goal differences are the differences in the interests, values, or objectives of the individuals, such as personal, professional, or organizational goals. Goal differences can cause conflict when the individuals have incompatible or competing goals, or when they have different or conflicting priorities, strategies, or outcomes.
4. Lack of Trust: Lack of trust is the absence or deficiency of the confidence, faith, or reliance of the individuals on each other, such as honesty, integrity, or competence. Lack of trust can cause conflict when the individuals have doubts, suspicions, or fears about the intentions, actions, or abilities of the other party, or when they have betrayal, deception, or violation of trust.
5. Harassment: Harassment is the unwanted or unwelcome behavior or action of the individuals towards each other, such as verbal, physical, or sexual harassment. Harassment can cause conflict when the individuals feel offended, threatened, or violated by the other party, or when they have resentment, anger, or hostility towards each other.

b. Intergroup Conflict

Intergroup conflict is the conflict that occurs between two or more groups or teams who interact with each other in the organization. Intergroup conflict can arise from various factors, such as:

1. Competition of Resources: Competition of resources is the rivalry or contention of the groups or teams over the limited or scarce resources of the organization, such as money, time, space, equipment, etc. Competition of resources can cause conflict when the groups or teams have unequal or unfair allocation, distribution, or access of the resources, or when they have different or conflicting needs, demands, or claims of the resources.
2. Task Factors: Task factors are the factors related to the nature, scope, or purpose of the work or task of the groups or teams, such as complexity, interdependence, or urgency. Task factors can cause conflict when the groups or teams have different or unclear roles, responsibilities, or expectations of the work or task, or when they have different or conflicting methods, standards, or outcomes of the work or task.
3. Status Struggle: Status struggle is the struggle or conflict of the groups or teams over their relative position or rank in the organization, such as power, authority, or prestige. Status struggle can cause conflict when the groups or teams have unequal or unfair recognition, reward, or influence in the organization, or when they have different or conflicting aspirations, ambitions, or achievements in the organization.
4. Reward Conflict: Reward conflict is the conflict of the groups or teams over the incentives or benefits of the organization, such as salary, bonus, promotion, etc. Reward conflict can cause conflict when the groups or teams have unequal or unfair evaluation, appraisal, or compensation of their performance, productivity, or contribution in the organization, or when they have different or conflicting criteria, measures, or indicators of their performance, productivity, or contribution in the organization.
5. Organizational Change: Organizational change is the change or transformation of the structure, culture, or policies of the organization, such as innovation, improvement, or adaptation. Organizational change can cause conflict when the groups or teams have different or conflicting reactions, responses, or attitudes towards the change, such as resistance, acceptance, or support, or when they have different or conflicting impacts, effects, or outcomes of the change, such as loss, gain, or opportunity.

Levels/ Types of Conflict

Conflict can occur at different levels or types in the organization, depending on the parties, issues, or contexts involved. Some of the levels or types of conflict are:

a. Intrapersonal Conflict: Intrapersonal conflict is the conflict that occurs within an individual, who has to deal with their own thoughts, feelings, or actions. Intrapersonal conflict can arise from various factors, such as role conflict, role ambiguity, role overload, stress, etc. Intrapersonal conflict can affect the individual’s motivation, performance, or satisfaction in the organization.

b. Interpersonal Conflict: Interpersonal conflict is the conflict that occurs between two or more individuals who interact with each other in the organization. Interpersonal conflict can arise from various factors, such as personal differences, information deficiency, goal differences, lack of trust, harassment, etc. Interpersonal conflict can affect the relationship, communication, or collaboration of the individuals in the organization.

c. Intergroup Conflict: Intergroup conflict is the conflict that occurs between two or more groups or teams who interact with each other in the organization. Intergroup conflict can arise from various factors, such as competition of resources, task factors, status struggle, reward conflict, organizational change, etc. Intergroup conflict can affect the cohesion, performance, or effectiveness of the groups or teams in the organization.

d. Interorganizational Conflict: Interorganizational conflict is the conflict that occurs between two or more organizations who interact with each other in the external environment. Interorganizational conflict can arise from various factors, such as market competition, strategic alliance, merger and acquisition, etc. Interorganizational conflict can affect the reputation, profitability, or sustainability of the organizations in the environment.

Talent management

Talent management is the process of attracting, developing, and retaining high-quality employees who can contribute to the organization’s goals and objectives. Talent management involves a combination of HR processes across the employee life cycle, such as recruitment, onboarding, learning, performance, reward, and succession. Talent management aims to create a motivated, engaged, and productive workforce who will stay with the organization in the long term.

Some definitions of talent management by different authors are:

McKinsey: Talent management is “the way that your organization attracts, retains, and develops its employees (sometimes referred to as “talent” or “human capital”) to give your company an edge."

According to Carpente Mason, "Talent management refers to the anticipation of required human capital for an organization and the planning to meet those needs."

Importance of Talent Management

Talent management is important for both the organization and the employees, as it can have various benefits, such as:

a. Importance for the organization

i. Improves the overall performance : It improves the overall performance and productivity of the organization, as it ensures that the right people are in the right roles, and that they have the skills, knowledge, and motivation to achieve the organizational goals and objectives.

ii. Enhances the competitive advantage: It enhances the competitive advantage and sustainability of the organization, as it enables the organization to attract and retain the best talent in the market, and to foster a culture of innovation, learning, and improvement.

iii. Cost Reduction: It reduces the costs and risks associated with turnover, absenteeism, low morale, and poor quality, as it increases the satisfaction, loyalty, and commitment of the employees, and ensures that they are aligned with the organizational values and ethics.

iv. Strengthens Reputation: It strengthens the employer brand and reputation of the organization, as it demonstrates that the organization cares about its employees, and that it offers them opportunities for growth, development, and recognition.

b. Importance for the employees

i. Improves Career prospects: It improves the career prospects and outcomes of the employees, as it provides them with clear and realistic expectations, feedback, and guidance, and helps them to achieve their personal and professional goals.

ii. Enhances Learning and development: It enhances the learning and development of the employees, as it offers them access to various resources, programs, and interventions, and supports them to acquire new skills, knowledge, and competencies.

iii. Increases employee motivation: It increases the engagement and motivation of the employees, as it creates a positive and supportive work environment, and rewards and recognizes their performance, contribution, and potential.

iv. Promotes employees' well-being: It fosters the well-being and happiness of the employees, as it respects and values their diversity, individuality, and preferences, and allows them to balance their work and life demands.

Quality Management

Quality management is the act of overseeing all activities and tasks that must be accomplished to maintain a desired level of excellence. This includes the determination of a quality policy, creating and implementing quality planning and assurance, and quality control and quality improvement. It is also referred to as total quality management (TQM).

There are many definitions of quality management given by different scholars and experts. Here are some of them:

Thomas and Kilmann: Quality management is “the process of limiting the negative aspects of conflict while increasing the positive aspects of conflict. The aim of quality management is to enhance learning and group outcomes, including effectiveness or performance in an organizational setting” .

Folger, Poole, and Stutman: Quality management is “the variety of activities undertaken to address matters of contention or to keep them from getting worse. Quality management includes efforts to prevent, contain, resolve, or transform disputes” .

Components of Quality Management

Quality management involves four main components or processes that are interrelated and interdependent. These are:

a. Quality Planning: Quality planning is the process of identifying the quality standards and requirements for the products, services, or processes of the organization, and developing the plans and procedures to meet them. Quality planning involves setting the quality objectives, defining the quality criteria, selecting the quality methods and tools, and allocating the quality resources and responsibilities.

b. Quality Control: Quality control is the process of monitoring and measuring the quality of the products, services, or processes of the organization, and comparing them with the quality standards and requirements. Quality control involves collecting and analyzing the quality data, identifying and correcting the quality problems, and reporting and documenting the quality results and actions.

c. Quality Assurance: Quality assurance is the process of ensuring that the quality standards and requirements are met and maintained throughout the products, services, or processes of the organization. Quality assurance involves auditing and reviewing the quality activities and outputs, verifying and validating the quality performance and compliance, and improving and enhancing the quality system and culture.

d. Quality Improvement: Quality improvement is the process of continually seeking and implementing ways to increase the quality of the products, services, or processes of the organization. Quality improvement involves identifying and prioritizing the quality opportunities, implementing and evaluating the quality solutions, and learning and sharing the quality best practices and lessons.

Supply Chain Management

Supply chain management is the process of managing the flow of materials, information, and money from the source to the customer. Supply chain management involves the coordination and integration of the activities and functions of the suppliers, manufacturers, distributors, retailers, and customers. Supply chain management aims to optimize the efficiency, effectiveness, and responsiveness of the supply chain, and to create value for the stakeholders.

There are many definitions of supply chain management given by different scholars and experts. Here are some of them:

The Supply-Chain Council: Supply chain management is “the effort involved in producing and delivering a final product from the supplier’s supplier to the customer’s customer” .

Lambert, Stock, and Ellram: Supply chain management is “the integration of business processes from end user through original suppliers that provides products, services, and information that add value for customers” .

Importance of Supply Chain Management

Supply chain management is important for both the organization and the customers, as it can have various benefits, such as:

1. Improve customer service: Supply chain management can improve the customer service by delivering the right products, at the right time, at the right place, at the right quality, and at the right price. Supply chain management can also improve the customer service by providing accurate and timely information, handling customer inquiries and complaints, and offering customized and flexible solutions.

2. Minimize operating cost: Supply chain management can minimize the operating cost by reducing the inventory, transportation, warehousing, and production costs. Supply chain management can also minimize the operating cost by eliminating the waste, inefficiency, and duplication in the supply chain processes and activities.

3. Support strategic plan: Supply chain management can support the strategic plan by aligning the supply chain objectives and capabilities with the organizational goals and strategies. Supply chain management can also support the strategic plan by providing the competitive advantage and differentiation for the organization in the market.

4. Balance demand and supply: Supply chain management can balance the demand and supply by forecasting and planning the demand and supply of the products, services, or processes. Supply chain management can also balance the demand and supply by adjusting and synchronizing the supply chain capacity and flexibility with the demand and supply fluctuations and variations.

5. Increase profitability: Supply chain management can increase the profitability by increasing the revenue and decreasing the cost of the organization. Supply chain management can also increase the profitability by creating and delivering value for the customers and other stakeholders, and by enhancing the customer satisfaction and loyalty.

6. Improve quality: Supply chain management can improve the quality by ensuring the quality standards and requirements are met and maintained throughout the supply chain. Supply chain management can also improve the quality by implementing and monitoring the quality control and assurance measures, and by pursuing and promoting the quality improvement initiatives.

Family Business Management

Family business management is the process of managing the business operation that is owned and controlled by one or more families. Family business management involves the interaction and integration of the family and the business systems, and the consideration of the family interests and goals. Family business management aims to ensure the continuity and succession of the family business, and to balance the family and business needs and expectations.

There are many definitions of family business management given by different scholars and experts. Here are some of them:

Lansberg: Family business management is “the process of designing and implementing policies and practices that foster the long-term well-being of both the family and the business” .

Astrachan and Shanker: Family business management is “the process of managing the family business in a way that preserves and enhances the family’s influence on the business, while maintaining or improving the business’s performance and viability” .

Nature/ Features of Family Business Management

Family business management has some distinctive nature or features that make it different from non-family business management. Some of the nature or features of family business management are:

a. Family Ownership: Family ownership is the ownership of the business by one or more families, who have the legal rights and responsibilities over the business assets and liabilities. Family ownership implies the involvement and commitment of the family members in the business, and the influence and control of the family over the business decisions and strategies.

b. Family Management: Family management is the management of the business by one or more family members, who have the authority and accountability over the business operations and performance. Family management implies the participation and contribution of the family members in the business, and the leadership and direction of the family for the business.

c. Family Control: Family control is the control of the business by one or more families, who have the power and influence over the business governance and culture. Family control implies the coordination and integration of the family and the business systems, and the consideration and alignment of the family and the business interests and goals.

d. Fulfill Family Interest: Fulfill family interest is the fulfillment of the family interest by the business, which is the ultimate purpose and motivation of the family business. Fulfill family interest implies the satisfaction and loyalty of the family members to the business, and the creation and preservation of the family legacy and values through the business.

e. Go Next Generation: Go next generation is the transfer of the business to the next generation of the family, which is the main challenge and opportunity of the family business. Go next generation implies the continuity and succession of the family business, and the balance of the family and business needs and expectations.

Roles/ Importance of Family Business Management

Family business management plays important roles and has significant importance for both the family and the society, as it can have various benefits, such as:

a. Source of Employment: Family business management can provide a source of employment for the family members, who can work in the business and earn income and experience. Family business management can also provide a source of employment for the non-family members, who can work in the business and benefit from the family culture and values.

b. Resource Utilization: Family business management can utilize the resources of the family, such as human capital, financial capital, social capital, or physical capital. Human capital refers to the skills, knowledge, and experience of the family members, who can work in the business and add value to it. Financial capital refers to the money or assets of the family, which can be invested in the business and support its growth and development. Social capital refers to the network or relationships of the family, which can provide access to information, opportunities, or resources for the business. Physical capital refers to the land, buildings, or equipment of the family, which can be used for the business and reduce its costs and risks.

c. Capital Formation: Family business management can contribute to the capital formation of the economy, as it generates income, profits, and savings, which can be reinvested in the business or other productive activities. Family business management can also contribute to the capital formation of the society, as it pays taxes, fees, and donations, which can be used for public goods and services.

d. Society Welfare: Family business management can enhance the society welfare, as it provides products, services, or solutions that meet the needs and demands of the customers and the society. Family business management can also enhance the society welfare, as it follows ethical and sustainable practices that respect the environment and the community.

e. Maximize Government Revenue: Family business management can maximize the government revenue, as it pays taxes, fees, and duties, which can be used for the government budget and expenditure. Family business management can also maximize the government revenue, as it creates and supports other businesses and industries, which can generate more economic activities and tax revenues.

f. Regional Development: Family business management can promote the regional development, as it creates and distributes wealth and income in the local areas, which can improve the living standards and quality of life of the people. Family business management can also promote the regional development, as it preserves and promotes the local culture and identity, which can enhance the social cohesion and diversity of the region.

List of Some Popular family business:

Popular Family Business of Nepal	Popular Family Business of the World
1. Chaudhary Group	1. Walmart (United States)
2. Golchha Organization	2. Berkshire Hathaway (United States)
3. Shanker Group	3. Exor (Italy)
4. IME Group	4. Schwarz Group (Germany)
5. Bhat-Bhateni Group	5. Ford Motor Company (United States)
6. Nimbus Group	6. BMW (Germany)
7. Muktishree Group	7. Koch Industries (United States)
8. Prabhu Group	8. Cargill (United States)
9. Non-Resident Nepali (NRN) Businesses	9. Comcast (United States)
10. Himalayan Distillery	10. Dell Technologies (United States)