5 Big Challenges of Business Management (2022)
For a country, organization, or community, governance has a very important role in operating the organizational apparatus of a collective. In particular, corporate governance is also indispensable in helping all enterprise activities run smoothly and efficiently.
Good corporate governance will create the foundation for long-term development. It is understood as a system of all policies, regulations, and operating principles to serve the company's goals. Corporate governance includes planning and implementation steps, performance measurement, internal control, and information disclosure.
Corporate governance needs a clear strategy for long-term development
Besides uncontrollable external factors such as customer behavior and competitors, corporate governance is a factor that businesses can completely change to achieve significant benefits.
However, on the journey to conquer customers and increase profits, there are many difficulties and challenges that business managers face in the current technological era of continuous innovation.
Before looking at the big management challenges in business, let's learn more about corporate governance in today's article following article.
What Is Corporate Governance?
Corporate governance is a system of regulations, principles, and policies through which an enterprise orients its operations management and controls the company's entire operation.
Corporate governance involves balancing the interests of many stakeholders in the company, such as shareholders, senior executives, financiers, suppliers, customers, government agencies, and the community.
The governance system has many policies and regulations
According to the Institute of Chartered Accountants of England and Wales (ICAEW), the board of directors' responsibilities include setting the company's strategic goals, providing management to carry out those goals, supervising the management of the business, and reporting to shareholders on their managerial role.
“The purpose of corporate governance is to facilitate effective business and management, and to establish values and vision for the long-term success of the company.”
Five Business Management Challenges
Scope Of Responsibility
Corporate administrators or administrators on the Board of Directors are individuals appointed to represent company shareholders. So what are these people responsible for in the business apparatus?
Business leaders and managers in many fields today have to supervise many departments in the company, such as Human Resources, Finance, Marketing, IT, and even Logistics.
Because they are the people who are ultimately responsible and have the highest authority in the organization, whenever there is a problem in the departments, they will be the ones to resolve the dispute to handle the dispute; harmonize relationships; ensure coordination between departments.
Leaders are often the ones with the greatest responsibility
In addition, business managers must regularly make strategic decisions, implement company policies, and plan to accomplish the common goal - maintaining and developing the business.
This challenge requires managers to have extensive knowledge and the ability to come up with reasonable and reasonable solutions.
Always Improve Process To Increase Productivity
For managers in the retail business or the food and beverage (F&B) industry, dealing with dozens or hundreds of branches, stores, and agents is a real challenge. Not only that, in the process of managing operational processes, administrators must always ensure that everything happens under control and operates effectively.
Pressure to improve productivity
When checking what's going on at a certain point of sale, managers are forced to go to each place in the management area and make sure that the store is following the regulations on hygiene and safety, whether or not the store displays products following the standards set by the business and more.
Another problem in the process of operating a business is the errors in the way of handling business from people. This is one of the current issues in business management that can happen in any business environment, big or small.
To overcome this difficulty, many large enterprises have had to apply technology in the production process to reduce errors and improve work processes to improve productivity.
Today, technology solutions are one of the important factors that bring many benefits to businesses, such as:
- help businesses solve problems quickly,
- perfecting an effective sales model,
- Manage business operations and supervise employees
Amazon, the world leader in online retail, is a prime example of the use of technology in all of its operations.
By leveraging specialized information systems in business processes to improve the efficiency of the collection, storage, and analysis of its customer's personal information, Amazon has gained a very competitive advantage.
A popular solution used by Amazon is a software application that links all of the company's stores, suppliers, and global customers while providing a standardized management system for stakeholders to Amazon's business processes.
Amazon's Automated Work Model
In addition, Amazon employees work in a technology-enabled environment, helping to support process improvement and serving them in their day-to-day operations.
Difficulty in Managing Employee Competency
A good business administrator needs to skillfully remind when employees make mistakes or promptly reward them for motivating employees.
However, for companies with many employees, that is often not easy. Therefore, it is necessary to coordinate between the director, department heads, and team leaders.
At the same time, administrators need to design specific evaluation criteria and apply technology software and support tools into the working process to manage employees effectively.
Too Many Reports To Handle
Many people think that when they become a manager, all they do is lead and manage people to achieve the business's goals. But they quickly became frustrated when they discovered that they had to spend most of their time processing and aggregating reports from various departments.
From reporting data, performance, and sales to compiling, reading financial marketing documents, etc., they are one of the main challenges and tasks for managers and corporate governance in many fields today.
Viewing reports is one of the manager's responsibilities
Often, problems arise in work reporting problems related to updating data. If these data are not revised promptly and regularly, business administrators will have to spend a considerable amount of time cross-checking and confirming with multiple parties.
Imagine if you have a huge number of reports. This process will be extremely complicated and time-consuming. To avoid this problem, from the outset, managers need to ask each department to set up important reporting indicators and regularly update them.
Difficulty Allocating Resources
Supposing the important strategies of a business are implemented in the right direction and effectively depends a lot on factors. They involve things such as whether the leadership team is doing a good job of exploiting and using it, whether human resources are used, or whether there is a reasonable division of work.
Reasonable resource allocation
In any business, each department in the company will have different functions, and each employee will have different job duties.
Therefore, managers need to ensure proper division of work and the right work expertise of each individual to maximize the strengths and qualities of each organization member.
In addition to arranging personnel properly, business managers must also find ways to allocate finance and cash flow most effectively.
For a comprehensive digital solution for the above business management problems and challenges, FieldCheck software was born with useful functions to help businesses operate more efficiently.
Fieldcheck Software Solutions
What is the FieldCheck solution?
Replace Traditional Ways
The traditional method of taking notes and writing has now been replaced by mobile applications, helping you work more efficiently and save human resources.
Thanks to the feature of conducting surveys with intuitive questionnaires, data collection will become easier, and the reporting work of administrators is also greatly supported.
SPSS Standards Compliant
FieldCheck's data format is standardized according to SPSS (Statistical Package for the Social Sciences) - a system for analyzing data and running statistical tests, helping users to analyze data easily. Not only that, but our software also supports the download and upload of SPSS.
Support users to analyze data and make reports
Data Analysis
Data will be analyzed efficiently with analysis tools of FieldCheck. The system supports filtering and crosstab analysis applications for better data management.
Administration Tools
FieldCheck provides an all-in-one management toolkit that makes transparent your out-of-market jobs and improves your PDCA.
