Problems in Management System in Bangladesh and Way to Mitigate Them

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Problems in Management system in Bangladesh and way to mitigate them

Management problem is a fundamental challenge for the country. It is essential to have efficient cost management if we want to see ourselves as an industrialized nation Problems in the management systems are:

1.Problem of managing fund:
The major problem a Business firm faces in its establishment period is the problem for capital or sufficient financing problem. One of the first questions any potential entrepreneur must ask is, "How do I get the money"? The type of the business may be anything but the money necessary for finance is must. Without necessary fuel (money) no ship (Small Business firm) can run As a new Business, there is very few chance to raises the capital from share market. Only personal and family funds and personal loan from the friends are major source. But in this way it is very hard to raise a sufficient amount of capital.

2.Lack of Govt activities:
There is a nonstop echo by the government leaders, ‘Come Sun, Come Rain’; trying to state that there is a constructive and favorable atmosphere for investment in Bangladesh. The authorities are either not working together with the relevant people with adequate response, or they are aware of the reasons for the investors stepping away, however still do not want to resolve problems purposefully with the presumption of ‘ostrich attitude’. ◊Administrative coordination problem– Policies and the implementation processes are not materialized simultaneously because of lack of administrative communication and coordination among the government agencies. This situation results in high business costs and hassles for investors ◊Good governance – Good governance can be defined as a desired condition of management and operations. Good governance along with efficient leadership is achieved by bringing accountability in politics and bureaucracy. Government has to reform its policies and business practices to attain good governance. Good governance can bring about efficient and productive sized government, necessary reformation of legal and judicial system, Fiscal policy and infrastructural reforms, eradication of corruption, bureaucracy and dishonesty, and many more improvements in the country.

Culture and society have become corrupted through sick politics. The bureaucrats and regulatory bodies are steeped in corruption. For business enterprise, corruption works as taxation or lubrication cost. This corruption would not go up to such an extent if there were appropriate and strong legal and regulatory controls and motivational salary levels. Many companies regard bribery as just one of the costs of doing business (‘Lubrication Cost’) and show these payments as legitimate business expenses. 4.Political and Social Instability:

Political and social instability is another big problem. Whether it is a giant company or a Small Business the success of a business is greatly dependant on the political and social stability of a country. Every business firm is dependant on production or purchasing and selling. In Bangladesh our political and social climate is not stable at all. There is a condition of pre-war between the ruling party and the opposition. Always they are face to face with each other. Very often they call ‘Hartal’ and strikes. Such a loss can not be sustained. According to a UNDP research strike has led to 3-4% GDP losses during the 1990s. In the period of 1991-1996, 173 days of ‘Hartal’ were been called in total. It was 140 in 1996-2001 sessions. This creates immense burden on the business firms as the shops often get vandalized during strike violence. 5.Poor law and order situation:

A sound law and order situation help flourish business. But the situation has deteriorated over the years. Recent drive to improve the situation has helped but it has done damage to the business communities’ confidence.

6.Shortage of Power and Utility supply:
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