The forces within and outside the organizations have been making the business environment highly complex, increasingly dynamic and vulnerable in recent times. This makes the role of managers in formal enterprises around the world become more and more critical and challenging. The complexity of managerial environment requires understanding of the dynamics of various forces and their impact on the managerial practices. The article seeks to find out the critical issues and major managerial challenges that the managers may face in the new millennium.

Amanager is one who contributes to the organizational goals indirectly, by directing the efforts of others. Success or failure of any enterprise greatly depends on the efficiency of the managers. The managers are expected to discharge their duties effectively and efficiently to attain the goals of the enterprise. The role of the managers in formal enterprises in recent times has undergone tremendous changes. The forces within and outside the enterprises are making the business environment more complex, increasingly dynamic and vulnerable. As a result of which the role of the managers in formal organizations across the globe has become more and more critical and highly challenging.

An earnest attempt is being made in this paper to find out the critical issues and major managerial challenges that managers ought to face across the nations in the new millennium. A good manager recognizes challenges and finds ways to solve them. Less effective managers may not even recognize the real challenges they face. Let's examine some of the critical issues and major challenges that the managers would face in the new millennium.

Managerial Challenge, Business environment, European Economic Community, EEC, Liberalization, Privatization, Globalization, LPG, Organizational culture, Managerial environment, Risk management, South Asian Association of Regional Council, SAARC, Economic policy, Global economy.