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Challenges Facing Managers in Today’s Marketplace


Effective management is important in the success of any business. Managers have a duty to ensure that their company survives despite challenging economic situations. As a result, the success of companies depends on the nature of management practices incorporated. Therefore, the role played by managers cannot be downplayed. This requires the manager to make careful selection during the employee recruitment process. The resultant effect is that the company will have the quality labor force necessary for its effective operation. Due to changes in the business environment and an increment in the rate of technological innovation, managers are faced with numerous challenges in controlling organizational operations. There are several reasons why managers are becoming exhaustive in their management roles. Some of these challenges are analyzed below.

Corporate culture

Culture in an organization is very important since it determines the behaviors adopted within the organization. In an organization, culture adopts a top-down model in the entire organization. This means that employees embrace and adopt it. As a result, culture develops the employees’ behaviors and attitudes (Haslam, p. 500). Whereas the philosophy and policies of a company are beneficial to the company, culture is also essential in an organization. However, where culture only rewards negative attitudes and behaviors, it becomes disastrous. In such a case the manager requires to overhaul the culture. This becomes tentatively hard as it requires time before the employees can adjust to the new culture. The ultimate effect is that the overall performance of the company is affected. Organizational culture rewards attitudes and behaviors of an organization regardless of whether they are desirable (Fryer, Ellis & Egbu, p. 34).


Effective communication is crucial in the growth of a company. Managers use internal memos, E-mails, or holding meetings with the employees to pass their desired message. The method used to communicate corporate policies is very important. Where managers use the top-down approach in disseminating information within the organization, there are chances of the world being distorted at the tactical level. This unequal distribution of information affects the organization’s performance. Designing a common communication language is also a challenge due to the geographical diversification of the employees. This hinders interaction capacity within the organization and requires career development in order to cope with the challenge.

Decision making

Managers are responsible for making a decision that positively affects the company. These decisions are delegated to the employees for their execution. If the decisions made are not inclusive, that is, they have not adopted a bottom-up approach; the feedback received by the managers is likely to be incomprehensive. This arises from the fact that most of the employees are not involved. Some of the decisions may be only appealing to some employees and oppressive to others


Advancement in communication has improved the way businesses are conducted.

Companies are able to conduct business over the internet and reach many customers online. This has reduced the world into a global village. This has led to managers trying to adapt to the rapidly changing culture of their business partners such as customers in an effort to cope with changing market conditions. Managers are not able to establish specific tastes and preferences since there is no direct contact between the two parties. Globalization has also resulted in product diversity. This has encouraged consumers to choose from a wide variety of products. The effect has been an increment in the rate of competition amongst companies who have to improve the quality of their products and lower prices. The manager has to cope with the increased cost of production and meet the salaries of their employees.

Diverse culture

Managers in an organization manage people of diverse cultures, gender, different age groups, religious background, sex, lesbians, gays amongst others. This entire group has a diverse ideological differences. Formulating a culture that accommodates these demographic differences without generating conflict is quite technical. However, if managed well, they can improve innovation and creativity in approaching the organizational problem by offering diverse perspectives. Workforce diversity is a fact in organizational life (Frey, Ellis & Egbu, p. 70). It is also a key concern for theory and practice in organizational behavior.

Lack of modern skills

With improved technology and differences in the level of education, managers are faced with the challenge of having to improve their own skills in order to remain competitive. Due to their tight work schedule, managers have limited time to develop their own careers. Employees who were hired five years back may find they are less skilled compared with the modern generation. This requires the managers to invest in the employees’ career development so as to equip them with current skills. This should be a continuous process due to the rapid change in technology.

Lack of ethical standards

A technicality in this challenge involves establishing what is ethical and what is unethical. Sometimes unethical behavior is introduced in the organization by the environment in which it exists and whether such unethical behaviors are outlawed. In a diverse environment where employees of different races work together, there is always a conflict of ethnicity (Hollinshead, Nicholls & Tailby, p. 367). For instance, in some sections, women are discriminated against in the workplace. In most cultures and mostly in Asian and African factions, women are mostly meant to be a housewife. While this may be illegal in the United States and hence being regarded unethical, it’s a common practice in Arab countries. Respecting employees’ issues and denouncing discrimination within an organization becomes hard since these issues always conflict with each other. It makes the role of managers rather ambiguous and contradicting.


The role of managers is paramount in business running. Growth in technological advancement has not only changed the conduct of business but also generated challenges on how the business is conducted. Cultural diversity has so far posed the greatest challenge. However, there are several other challenges that hinder the performance of managers. These include organizational culture, mode of communication within the organization, lack of standard ethics among others as outlined in the discussion.


  1. Fryer, Barry, Ellis, Robert and Egbu, Charles. The practice of construction management: people and business’. New York: Wiley-Blackwell, 2004. Print.
  2. Haslam, Alexander. Social identity at work: developing theory for organizational practice. Psychology Press, 2003. Print.
  3. Hollinshead, Graham, Nicholls, Peter and Tailby, Stephanie. Employee relations. Pearson Education, 2002. Print.
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StudyKraken. "Challenges Facing Managers in Today’s Marketplace." December 25, 2021.


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