Different Contemporary Management Issues Faced By Global Organizations Essay

Different Contemporary Management Issues Faced By Global Organizations - Essay Example The discussion is mainly focused on a particular management issue i.e. the effect of legislation on the current workforce and management. Changing legislation to the organizations and workforce is one of the major issues faced by the human resource management. Besides the federal legislation, each state owns specific employment law and regulations which affect the functionality of human resources. The changes in federal laws generally impact the HR management of large to medium-sized organizations. Human resources managers need to be well-versed with the challenges of these ever-changing employment and workforce legislation to reduce the liabilities of organizations in different aspects of human resources operations. The recent development of minimum wages law is providing some added pressure to different organizations. The US federal minimum wages act was first introduced during the depression of 1933. At that time the federal government increased the minimum wages from 25 cents to $7 per hour. By the year of 2013, the minimum wages for workers in small and medium US industries has increased by $9.47 per hour. Similarly, the federal law has conveyed that the minimum wages of employees in large industries need to be increased to $ 11 per hour by the end of 2015. Though the wage hike has been proved to be beneficial for the employee loyalty and motivation programs, it is also adversely affecting the overall expenses and profit margin of organizations. Various businesses in the US market are facing different challenges due to this rise in the wage structure. The HR management of the Subway franchisees in Seattle is worried about the increase in organizational cost by $250 per week in terms of employee salaries. The strategic managers of Washington Lodging Association are still very confused about the effect of this legislation on the overall business activity of the organization.