Issues Facing Today’s Organizations
Jessica Kemske
June 3, 2012

Organizations today face many different challenges. Some challenges are based on the nature of operations and some challenges are more common and are faced by most organizations. A couple of the more common challenges would be technological advances and societal views. In my opinion, technological advances are the biggest issue that organizations face today. If we look back even just ten years ago we have come such a long way with technology. Now someone could just pick up an iPad and have a face to face conference with someone on the other side of the world. Most companies, 20 years ago, didn’t even have websites, nowadays that would be considered appalling. Going back twenty years companies were just developing email. Now just about everyone in an organization must have their own computer or at least have access to one. Twenty plus years ago there was no need for such a large information technology department or computer specialists; now there is a high demand. This demand has required companies to either create or hire an outside entity to provide them with “tech-support.” This requirement costs incredibly large sums of money. Companies have to keep up with modern technology in order to offer services that are compatible with societal needs. One of the technological issues is the lifespan of the equipment. Companies must be able to reinvest and keep up with current technology. This can cause a problem financially because the organization has to support and update all of the technology. A lapse in technological advancement with machinery/equipment can cause a lapse in a company’s position in relation to their competitors and may also lead the demise of said company, but also over extending finances to have a constant flow of new wave technology can cause bankruptcy for the company, all of these issues must be handle with care about what to buy and when to buy.
One of the issues with technological advances is the age of the generation using it. Most older people in the workplace have trouble keeping up with modern technology. I know from personal experience, having to train an older person at work on computer programs. It is frustrating for someone my age, which grew up quickly adapting to technology, to train someone a few times on a program because he/she did grasp it the first time. This can be a problem because it takes up one individual’s time whose job it may not be to do the training. This problem can lead to personnel issues and possibly a work-place Darwinism where people will either adapt to survive or fail and be let go.
When an organization uses modern technology, the technology typically cuts the number of hours that need to be worked. This increases profit for the organization because it doesn't need to pay workers to remain on the job site. However, this causes a problem with job losses because the technology completes the tasks that the employee originally did. For example, a company may be able to eliminate a position due to new software, but will probably have to pay a consulting fee for installation and technical support. Factories are another good example. As more robots complete assembly line tasks in an automated way, there's less of a need for physical workers.
Technology has also impacted communication in an organization. Businesses use websites, email, text messages, chatting and other forms of technological communication channels to transfer information to managers, employees and the general public. With more machines taking over, a company will lose its personal relationship with customers or clients. Most people want to communicate with a real person rather than a robot or machine. Employees can have many miscommunications through email or text messages etc. A message can be perceived in the wrong way and cause confusion as opposed to meeting face to face with someone. Emails, text messages and other website communication can be vulnerable to hackers or other individuals who should not have access to certain information. These security issues can create serious legal liabilities.
Societal views is another issue that organizations face today. A big thing currently in society is the notion of “going green”. Companies such as Wal-Mart, Ford, and General Electric have implemented "green" strategies, embracing environmentalism in their marketing and core business operations. This is one way for an organization to stand out from its competitors. It is difficult for many companies to take on socially responsible policies because it is still difficult to show a clear benefit to the bottom line. The big thing right now in society is going “green”. Going green can be a great idea, but the marketing tactics are so consumer-based, focusing on expensive products while offering no education about what going green actually does for the environment. The "green" product always seems to be the most expensive as well.
The big automotive companies have come a long way with the “green” initiative. Most people today are looking to buy fuel efficient vehicles and the hybrids. Almost every automaker now has at least one hybrid vehicle. People want them because they are not only great on gas, but they are not spewing out as many harmful toxins as say a diesel truck. This causes an issue with these companies keeping up with society’s demands. For example, Ford came out with the Fusion hybrid to appeal to “green” customers, but they cannot stop production on the F250 Turbo Diesel because they need to appeal to the consumers that want that particular vehicle as well.
The main reason that companies are resisting “going green” is the whole process of change would be time consuming and expensive. For example, a company may install solar panels, but the money saved from energy reduction may not be enough to offset the conversion costs. The company also needs a lot of space because solar panels take up a large area, especially if it is a large company. Companies located in cities will be at a disadvantage when it comes to placing solar panels because the building will probably be blocked from the sunlight.
Another issue with societal views is a company’s ability to build trust with its customers and clients. With so many big companies such as Enron and WorldCom in recent history with their scandals, it is very hard to companies to be trusted. No trust means a hostile, toxic work environment where productivity and consumption are limited.
In conclusion with current societal views are putting more of an impact on companies to become more “earth-friendly” and more tech-savvy to survive in the modern world. The combination of technology and eco-friendly operations often go hand in hand as companies and organizations are seeking new forms of technology to help aid in operations of becoming green. This can be quite an expensive process and openly resisted by members of an organization who do not accept or fear the change. Ultimately, companies and organizations have to be much smarter than they were in previous decades. An over expenditure on new technologies may cause the organization to go belly-up. A lack to adhere to the current social trend of going green and be ecologically friendly may be exploited by other competitors or cause distrust from consumers. A rapid change in operations and organizational society within a company can be rejected by employees and ultimately fail to become common practice. Organizations need to know how, when, and why to make decisions that will be the best for their survival.