Challenges Faced by Contemporary Organizations: An MgMT20144 Essay

This essay delves into the challenges confronting contemporary organizations, focusing on key areas such as cultural differences, international staffing, and intellectual property protection. It highlights how organizations are evolving from rigid structures to team-based models, empowering employees and fostering greater communication. The essay explores the impact of globalization on diversity and multiculturalism, emphasizing the need for organizations to manage these aspects effectively through employee engagement programs and training. It further examines the challenges of international staffing, including compensation, intellectual property, and labor laws, and suggests solutions like in-country legal expertise and diversity training. The essay underscores the importance of addressing these challenges to achieve organizational goals and foster better business outcomes.

CHALLENHGES FACED BY
CONTEMPORARY
ORGANIZATION
NAME OF THE STUDENT
NAME OF THE UNIVERSITY
AUTHOR NOTE

The contemporary organizations
are known to follow
organizational structure, which
is known to follow the rigid top
to down model of traditional
structure is removed in the
favor of teams which are known
to work on projects altogether.
Instead of simply relying on the
senior management only the
contemporary organizations
drives the work process flow out
through designing various types

Instead of simply relying on the
senior management only the
contemporary organizations drives the
work process flow out through
designing various types of models and
empowering the employees. Here the
employees are given more power to
implement changes without the need of
approval of the staff members in the
higher authority. In these types of
business culture the employees are
given or are provided with the
requirements, milestones and goals of
production.

Cultural differences

The main advantage of the
employees in the contemporary
organization is that the
employees are provided the
freedom of developing and
implementing their own decisions
in order to take ownership of the
projects. This freedom thus leads
to an increased productivity,
with greater quality of the work
and the outcome will stick to the
full satisfaction of the
customers engaged with the

With this there is also a
greater level of
communication among the
employees of the company.
According to the author
Collings, Wood & Szamosi
(2018) every employee is
dependent on the success
of the other employee

In the present era of ongoing
globalization, there is an increase in
the range of migration, changes in the
demographics and emerging market
trends which are responsible for the
technological evolution. Therefore it
is very necessary for the organization
to manage the diversity and
multiculturalism which goes far off
the human resource management. The
subject of multiculturalism will lead
the employees to better engage with
the customers.

According to the author Naser & Al
Shobaki (2017) the concept of
multiculturalism and diversity
management is known to encompass
respect, acceptance, recognition and
valuing the individual differences in
the organization. Whereas diversity
is defined as the difference between
the people which is known to include
the dimensions such as race,
ethnicity, gender, sexual
orientation, socioeconomic status,
age, status, religious belief and
ideologies.

The multiculturalism is known to
include various types of strategic
alignment which are followed by the
organization to include and value
each of the employees equally on the
basis of the diverse characters they
represent. This will help the
organization to achieve the
organizational goals and lead to
better business outcomes. Fr this the
organization has to strongly focus on
the policies and various types of
employee engagement programs to fit
various types of people in the
organization.

Few of the inter cultural
differences which
includes in the workplace
are related with their
dress, religious
practices, customs,
social values and noon
verbal behavior.
Therefore this might lead
to face various types of

Inter cultural
differences

Therefore in order to manage
these the organizations needs to
train the staffs accordingly,
they should teach them the
proper use of staff cultural
skills, this will be able to
promote the cultural
celebrations and the employees
will be more flexible. However
it has to be kept in mind that
there should be no employee
discrimination against the
workers from diverse background

With the diverse cultural
differences the organizations in
the present era are known to
face various types of challenges
with their international
staffing approaches will be
discussed over here (Sheldon,
Antony & Car 2017). The
international staffing is a very
necessary piece to the
establishment of expansion
puzzle.

Challenges faced by
organizations
The first challenge which is
faced by them is planning the
appropriate compensation for the
international staffs (Keith,
2019). According to the author
the financial incentives are
something which is used to keep
the international employees
including the expertise
motivated and help them to work

The next challenge which is
faced by the organizations
include the intellectual
property protections of the
company. According to the author
Ogbu, (2017) most of the
organizations are known to face
various types of problems when
determining the difference
between the contractors and the
employees who are from the
international market or
environment.

This is known to affect the intellectual
property protection of the organization.
In most of the cases the work which is
made for the hire laws are mainly
different from a single country with
another (Khan, Pitts & Williams 2016).
Therefore before hiring any employee
from outside it’s is very important to
understand the initial requirements
before determining the employee
potential status. The organization faces
various types of challenge in this
context as because it is against the law
or illegal to engage with into an
exclusive working agreement with the

Therefore it can be said that the
diversity related initiatives can be
fully integrated into the mission and
vision statement of the organization.
The last solution which can be drawn
to this challenge is by providing
employee diversity related training
to decrease the number of issues. The
cultural difference exist in every
workplace in order to reduce it the
organization can offer diversity
training program from which the
company can be benefitted in a number
of ways such as increase in the

Therefore it is recommended that the company
should team up or accompany an in country
legal expert to nail down the specific tasks
which are assigned to the employees in the
organization. Taking various types of
necessary steps can help the organization
prevent various headaches. The next
challenge which is faced by the organization
is with the set of labor laws, which the
company needs to fully understand before
confirming a hire from the international
source. The employee should also see that
the new legal forces present in the new
country are solid before the hiring process.

Thank You