Management
st
Challenges of 21
Century
GROUP 2
Agenda Overview
01 Introduction 05 Performance & Rewards
02 Key Challenges & Issues 06 Relationship b/w
performance & rewards
03 Challenges
07 Conclusion
04 Factors Reshaping
Management Purpose ,
Performance & Reward
Perceptions
Introduction
Management is the process of planning,
organizing, leading, and controlling resources to
achieve organizational goals. In the 21st
century, managers face several challenges and
issues due to economic reforms, globalization,
technological progress, digitalization, and
changing expectations of employees and
society. Effective managers need to balance
profit, people, and planet while ensuring long-
term success.
Key Challenges & Issues
Advancements in
Liberalisation
Information Technology
& Digitalisation
Globalisation Workforce Diversity
Technological Changing Employees’
Advancements Aspirations
Key Challenges & Issues
Productivity and Quality
Empowerment Of
Employees
Balancing of Conflicting
Management Of
Demands of different
Innovation & Change Stakeholders
Promoting Ethical
Behavior
Challenges
Technological Advancements in IT &
Liberalisation Globalisation
Advancements Digitalisation
It refers to reducing government Continuous improvements in
Integration of economies Widespread use of Information
restrictions on trade and
worldwide where businesses machines, tools, and Technology (IT) like cloud
business. It allows private and
operate in multiple countries. processes such as computing, big data, e-commerce,
foreign companies to enter
Open borders across the world automation, robotics, and AI. and digital platforms.
industries that were earlier under
government control. for trade with foreign countries.
Challenge:
Challenge: Challenge: Challenge: Training employees to adopt
Increased competition due to Handling cross-cultural Training employees to adopt new technologies.
entry of private and global differences new technologies. Need for continuous digital
players. Complying with international Managing costs of transformation.
Pressure on managers to laws, taxation, and trade technological upgrades. Handling remote work culture
improve efficiency, innovation, policies. Keeping pace with competitors and online customer
and cost control. Competing with global giants. who adopt faster. interactions.
Eg: The 1991 LPG reforms in India
allowed private banks like HDFC Eg: Walmart entering India through Example: Automobile companies Example: Amazon, Flipkart, and
and ICICI to compete with public Flipkart challenged local retailers shifting from manual assembly lines Zomato rely heavily on digital
sector banks. to upgrade their operations. to robotic automation. platforms for their business.
Challenges
Changing
Empowerment of
Employees' Productivity & Quality
Workforce Diversity Employees
Aspirations
Modern employees want more
Presence of employees from Giving employees more Productivity means efficiency in
than salary—they expect career
different cultures, genders, ages, authority, decision-making using resources; quality means
growth, recognition, work-life
nationalities, and educational power, and responsibility in meeting customer
balance, and mental well-being.
backgrounds. their work. expectations. Both are crucial
in competitive markets.
Challenge: Challenge:
Challenge:
Preventing discrimination and Designing attractive career Challenge:
Reducing costs while
bias. development programs. Balancing empowerment with
maintaining quality.
Managing conflicts due to Providing flexible working accountability.
Adopting techniques like Total
differences in values and conditions. Training employees to take
Quality Management (TQM)
communication styles. Retaining employees in ownership of results.
and Six Sigma.
Ensuring inclusivity and equal competitive markets.
opportunities. Example: Google provides flexible Example: Toyota’s production
Example: Maruti Suzuki introduced
Example: Infosys employs people hours, wellness programs, and system allows workers to stop the
lean manufacturing and quality
from over 50 nationalities, requiring career training to meet employee assembly line if they notice a
circles to improve productivity and
managers to promote cultural aspirations. defect, showing trust in employees’
quality standards.
harmony. judgment.
Challenges
Balancing Conflicting Demands Promoting Ethical
Management of Innovation &
of Different Stakeholders Behavior
Change
Stakeholders include shareholders, employees, customers,
government, and society. Their demands often conflict.
Innovation refers to developing new products, Shareholders → maximum profits, Employees → higher
Ethical behavior means conducting
services, or processes. Change management wages & job security, Customers → low prices & high
means adapting to internal and external
quality, Government → taxes & compliance, Society→ business with honesty, fairness, and
ethical and eco-friendly practices social responsibility.
changes.
Challenge:
Challenge: Challenge:
Preventing corruption, fraud, and
Overcoming employee resistance to change. Balancing these demands without harming
unfair trade practices.
Investing in research and development. business growth.
Establishing strong codes of conduct
Keeping pace with competitors’ innovations.
and compliance systems.
Example: Apple continuously innovates with Example: Hindustan Unilever balances profit-making
iPhones and iPads; Nokia failed to adapt and lost with social initiatives like “Swachh Aadat, Swachh
Example: Infosys under Narayana Murthy
its market share. Bharat.”
became a global example of ethical
governance.
Factors Reshaping Management Purpose ,
Performance & Reward Perceptions
Managing Work-
Internationalisation
Life Balance
Digitalisation Managing issues
created by pandemic
Concern for
Changing Profile of
Environmental
Workforce Sustainability
Factors Reshaping Management Purpose , Performance & Reward Perceptions
Businesses are expanding beyond national borders due to globalization.
Internationalisation : Managers must deal with different cultures, languages, laws, and markets.
Example: McDonald’s changes its menu according to country – McAloo Tikki in India
Technology like AI, automation, big data, and e-commerce has changed how businesses
operate.
Digitalisation : Managers must adopt digital tools for decision-making, customer service, and efficiency.
Example: Amazon uses Artificial Intelligence for product recommendations and efficient
supply chain.
Changing Modern workforce is younger, more diverse, and more mobile.
Profile of Employees demand equality, inclusion, career growth, and flexible work.
Example: Infosys hires employees from 50+ nationalities, ensuring cultural inclusion
Workforce :
programs
Factors Reshaping Management Purpose , Performance & Reward Perceptions
Employees face stress due to long hours, remote work, and performance pressure.
Managing Work–Life Managers must design policies for flexible timings, leave policies, and wellness programs.
Balance Example: Google provides on-campus gyms, childcare, and flexible schedules to promote
work-life balance.
COVID-19 disrupted supply chains, created remote work culture, and caused job insecurity.
Managing Issues
Managers had to quickly adopt digital tools like Zoom/Teams, flexible policies, and health
Created by
safety rules.
Pandemic Example: TCS adopted “Work from Anywhere” model to continue operations during the
pandemic.
Businesses are expected to adopt eco-friendly practices to reduce pollution, carbon
Concern for
emissions, and waste.
Environmental
Example: Tesla promotes electric vehicles to reduce dependency on fossil fuels.
Sustainability
Performance & Rewards
Performance
Performance refers to the results and behavior of an employee
while carrying out assigned tasks.
It measures how well an employee meets set standards, targets, or
organizational goals.
Rewards
Rewards are all forms of compensation, benefits, and recognition
employees receive in return for their performance. They may be
financial or non-financial.
Relationship between Performance and
Rewards
Performance is the cause, and reward is the effect.
A well-designed reward system motivates employees to
improve performance.
Rewards without fair performance evaluation → lead to
demotivation.
Performance without recognition → leads to attrition
and dissatisfaction.
Example: Google links employee performance with perks like
free meals, flexible work, and innovation awards – which
improves creativity and retention.
Conclusion
Management in the 21st century goes far beyond profit-making and requires managers to effectively
respond to liberalisation, globalization, technological advancements, digitalisation, workforce diversity, and
ethical responsibilities. A strong link between performance and rewards is essential, as fair and transparent
systems enhance employee motivation, productivity, and retention. The true measure of success lies in being
flexible, innovative, socially responsible, and people-oriented, enabling organizations to achieve
sustainable growth, balance stakeholder demands, and remain competitive in an ever-changing global
environment.
Group Members
Shreya Chanrila
Himanshi Arpita
Thank You
30 September, 2025