Challenges Faced by Organizations

This document discusses the challenges faced by organizations, including ethical issues, cultural diversity, and challenges with innovation. It also explores strategic objectives and approaches to ethical standards.

Running head: MANAGEMENT, PEOPLE AND TEAMS
Challenges Faced by Organizations
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Introduction
The secret of success in an organization is to create organizations that are cognizant of
ethics, concerned of cultural diversification and differences. Additionally, they need to
ascertain that all the people in the organization are in the same thinking in relation
organization’s goals and also be inventive, creative and innovative. Theories suggest that the
relationship between morals, culture, and diversity have both positive and negative impact on
the association. In the review, emphasis will be laid on examining the challenges faced by an
organization, strategic objective, and approaches to ethical standards and in the end, give a
conclusion.
Challenges faced by an organization
In the review of the video presentation, the presenter highlighted the challenges
encountered in the organization and stated them as ethical issues, cultural diversity, and the
challenges with innovation. Ethical issues are big challenges to organizations because their
operations are never in line with the set ethical standards. They breach the norms of ethical
standards. Cultural diversity, on the other hand, arises when employees in the organization
come from different cultural background, which is always not the case. Many organizations
fail to take this aspect into consideration.
Innovation still being new and mostly a handy element, many organizations still face
issues. There are many issues in ensuring that there is creativity and innovation of new ideas
and products for the success of the organization. Moreover, there is a challenge in embracing
the modern innovation that facilitates doing work in the organization and therefore gets
overridden by the fast changing industry trends. Diversification is another essential
component in strategic management and a good organization diversifies. First, diversification
in the sense of making a wider and broader view of doing business rather than getting

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inclined to one perspective and secondly, diversification in terms of bringing in employees
from different diverse cultures.
Strategic Objective
Strategies in an organization are essential for creating competitiveness in the market.
Organizations set up strategic objectives that are in-line with set goals. As per Steiss (2019),
the management objective set up programs and tasks that get translated into strategic
objectives for realization. In the review, the strategic objective of the organization stipulated
in the video are respects of culture, considering ethics in behaviour, ensuring that all
members get involved in the decision making processes.
Respect for culture even though it is not a strategy but plays a role in the
organization’s success. In order to excel in business, respect for culture is essential. First, the
culture of the organization gets respected by embracing it and taking as part of doing
everyday operations. Secondly, culture gets respected when people from different cultural
backgrounds get the same and fair treatment with no segregation in terms of pay, promotion,
and training. Culture is a crucial aspect of progress in an organization; it is prudent that there
is organizational culture. Through the use of culture, people in the organization can have
unity of purpose and work. The culture that is positive means a lot to the organization and the
creation of the positive culture get realized through the inculcation of values. These values
for impact and success have to be realized with all the stakeholders (TED, 2017).
Ethical behaviour calls for an organization and the management to uphold ethical
standards in all of their undertakings. Ethical behaviour does not leave in isolation; it requires
that the business and the stakeholders are both in a balance so that no side is discriminated. In
other words, there is a need for fairness in tasks jurisdictions (Velasquez et al., 2015).
In addition, stakeholder involvement is essential in decision-making. Therefore, the
decision-making process must be all-inclusive so that group decision making which is

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stronger as opposed to individual decision making is attained. This way an organization will
come up with decisions that are in-line with the set objectives and the hence company is
poised for success on its implementation. Another aspect is positive communication which
must be ensured in the organization (Renn, 2015) since employee communication ensures a
way of making work done and this is the critical part of the business. There must be a
supportive environment that is supported by good channels of communication. Additionally,
communication facilitates engagement with the stakeholders as well as the suppliers. Through
communication, the manager is able to get the feedback of all the processes that take place in
the organization. In reality, communication makes all things in an organization run smoothly
(Wamsler, 2017).
Approaches to Ethical Standards
In the modern competitive world, businesses are striving to remain at the top of
business. Despite this positive endeavour, a corporation does not follow ethical
considerations in their business processes. The society today is cognizant of their rights as per
ethical standards and CSR regulations. Owing to this and business competitiveness, the
results are continuous lawsuits. This is not healthy for a business as there is a loss of
reputation and heavy fines. This calls for adherence to health standards and hence ethical
approaches Maschi (2016).
In the review, the presenter examined the following approaches to ethical standards:
utilitarian, right of approach, and justice and fairness approach, the common good approach,
and the virtue approach theories. The two selected approaches are the utilitarian approach and
the right of approach. The utilitarian approach is a strategy that gets employed in ensuring
that there are ethical decisions in an organization. As per Mandal, Ponnambath, & Parija,
(2016), utilitarian stipulates that the best way of overcoming dilemma is to take the
consequences of all actions as a whole. It strengthens the fact that all stakeholders must be

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included in all the process of making decisions and those ethical principles have to be put in
consideration so that there is a balance and not to get biased on one side (Capsim, 2018).
The rights approach strategy, on the other hand, calls that there must be respect to
humanity. According to Maschi (2016), it is because the management of people and as a
leader allows the subordinates to copy the following virtues. The exercise of fair treatment
and equality in decision making is appropriate in ensuring good progress of the organization
in line with ethics principles (Capsim, 2018). Moreover, other additional strategies to be
employed in the organization are the creation of positive organizational culture, the
involvement of all the stakeholders, ensuring positive communication and putting in practice
guidelines (Mandal, Ponnambath, & Parija, (2016).
Conclusion
Organizations face the challenges that relate to ethical issues, cultural diversity, and
challenges with innovation. With the application of set strategic objectives, organizations
will remain successful. In doing this there is a need to ensure there is respect for culture, take
in ethics in behavior, and involve all stakeholders in the decision-making process. The
approaches of ethical standards employed are based on utilitarian approach-where action gets
assessed based on the consequences where all must be equally affected in a positive way and
the rights approach-deals with human dignity in which exercise of human rights is
paramount. In the review, one is able to learn that success in an organization rests on the
alignment of ethical issues to meet set ethical standards, allowing and respecting cultural
diversity and embracing innovation. It is prudent to strive at all times for the better good
while at the same time coming up with actions that have no harm or lessons to the biggest
part of sufferings. As per utilitarian approach, any other thing that is around is taken equally
as important however small it is thus taking care of other habitats that might be culpable to
suffering.

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References
Mandal, J., Ponnambath, D. K., & Parija, S. C. (2016). Utilitarian and deontological ethics in
medicine. Tropical parasitology, 6(1), 5.
Maschi, T. (2016). Applying a human rights approach to social work research and
evaluation. Springer,.
Steiss, A. W. (2019). Strategic management for public and nonprofit organizations.
Routledge.
Capsim, S. (2018). Five Ways To Shape Ethical Decisions. Ethics, 4.
TED Talks (2017, Oct). How diversity makes teams more innovative.
Retrieved from:https://www.ted.com/talks
rocio_lorenzo_want_a_more_innovative_company_hire_more_women (11:06 min)
Velasquez, M., Andre, C., Shanks, T., and Meyer, M. (2015). Thinking Ethically.
Markkula Center for Applied Ethics, Santa Clara University. Retrieved
from https://www.scu.edu/ethics/ethics-resources/ethical-decision-making/thinking-
ethically/
Renn, O. (2015). Stakeholder and public involvement in risk governance. International
Journal of Disaster Risk Science, 6(1), 8-20.
Wamsler, C. (2017). Stakeholder involvement in strategic adaptation planning:
Transdisciplinarity and co-production at stake?. Environmental Science & Policy, 75,
148-157.