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Challenges of Human Resources Management 1
Challenges of Human Resources Management 1
Challenges of Human Resources Management 1
Humanbeingsarethemostimportantresourceinanorganization.Afirmssuccessdepends
onthecapabilitiesofitsmembers.Mostproblems,challenges,opportunitiesandfrustrations
inanorganizationarepeoplerelated.Humanresourcesarethelifebloodofanorganization.
Despitetheapplicationoftechnologyinmodernbusinessmanagement,humanresourcesare
stillrelevantandmostadaptiveresourcesoftheorganization.ThestrategicvaluesofHR
stemfromthefactthatapartfromotherresourcesemployedinthecourseofproduction(land,
capital,technologyetc.)whicharepassive,humanresourcesareendowedwithdiscretionary
decisionmaking power and thus have competitive advantage over the other resources.
Besides,HRcombinesotherresourcesintherightmixtoformulateappropriatestrategiesfor
theaccomplishmentofthedesiredobjectivesoftheenterprise.ThisessentialattributeofHR
assisttheenterprisetomakerightfuldecisionsandrespondeffectivelytothethreatsand
opportunitieswithintheenvironmentoftheorganization.Thustheenterprisedependshighly
onitsHRforsuccessandsurvival.Thisdependencecontinuouslyisincreasingconsidering
the complex and turbulent nature of the business environment of this century. The
managementofHRiscomplexandproblematicbecausetheindividualsasworkershardly
adapt or voluntarily embrace the objectives of the organization. As individuals, the
employeeshaveneeds,aspirations,motivations,desiresandinterestswhichinfluencetheir
behavior at work but unfortunately these objectives are sometimes in conflict with the
corporate objectives of the enterprise. In reconciling this conflicting interests Human
ResourcesManagementandPlanningareusefultoolsemployedinharmonizingtheneedsof
theemployeeswiththegoalsandobjectivesoftheorganizationonacontinuousbasis.Ina
nutshell,theprimarytaskofHRMistoensurethattheorganizationHRareutilizedand
managedeffectively.HRpractitionersaresaddledwiththeresponsibilityofdesigningand
implementingpoliciesandprogrammersthatwillenhancehumanabilitiesandimprovethe
organizationsoveralleffectiveness.Empiricalstudieshaveshownthatpoorhumanrelations
atwork,neglectofstaffwelfareprogrammerandlackofmotivationareoftenthefactorsthat
causeindustrialstrifeanddecliningproductivityintheworksetting.
ThemoderndayentrepreneursrecognizethattheHRarevitalelementintheorganizationand
concomitantlyacknowledgetheroletheHRpractitionersplayindevelopingthesevaluable
resources.ToacquireandretainHRintheorganization,theHRpractitionersinbriefperform
fourcriticalroles:
i.
Createandimplementpolicies,whichshouldbeinwritingandcommunicatedto
ii.
allemployeesthroughcircularsortheemployeehandbook.
Offeradviceandcounseltheemployeesonmattersborderingonproductivity,
safetyatwork,careerpathormanagement,morale,honestyandintegrity,human
iii.
relationsetc.
Provision of services that assist Line Managers in performing their jobs or
serving the organizational units i.e. recruitment, selection and placement,
compensation management, training and development, staff welfare programs,
iv.
industrialandlaborrelations,researchandplanning.
ControlofHRprogrammerandlaiddownproceduresi.e.tomonitorandensure
thatHRpoliciesandguidelinesareimplementedreligiouslyortotheletterse.g.
grievancehandlinganddisciplinaryprocedures,FederalCharacterprinciplesor
Quotasystem,fairnessofappraisalexercise,grantingofloansetc.
Eachoftheabovefunctionsisacomplexflowofactivitiesanditunderscores
HRmanagementfunctionsasintegralpartoftheoverallcorporateplansofthe
enterprise. It follows therefore, that HR management function is a joint
responsibilityforallmanagerswithintheenterprise.Thepaceofglobalizationis
increasingcontinuouslyintermsofmarketsforgoodsandservices,investment
opportunitiesacrossbordersamongstothers.Enterprisesfacecompetitionfrom
all fronts. Human resource management is not left out in this transformation
crusadeasithasobligationtomovealongwiththechangingdemandsofthe
globalizationprocess.Oneoftheobjectivesistoshowthateffectivemanagers
should constantly be aware of the changes taking place in domestic (home
country) environment, as well as around the globe (international and foreign
environments)onHRissuesanddevelopments.Bysodoing,theycanscantheir
environment on an ongoing basis, and when they detect opportunities and/or
threats,theycantransformtheirorganizationtoseizetheopportunitiesand/or
combatorneutralizethethreatsasthecasemaybe(C.Anyin.Ph.D,2011).Human
ResourcesManagementisoneofthetoughestdutiesofamanagersincehumans
differ in terms of attitudes, values, aspirations, motivations, assumptions,
1.Economicandtechnologicalchange
2.Globalizationofbusiness
3.Workforceavailabilityandqualityconcerns
4.Demographicsanddiversityissues
5.Organizationalrestructuring
Theenvironmentfacedbyhumanresourceischallengingone;changesareoccurringrapidly
acrossawiderangeofissues(ShahiRazAkhtar,2012).Itappearsthatthemostprevalent
challengesfacingHRmanagementareasfollows:
GlobalizationAtapoliticalandeconomiclevel
Globalizationistheprocessofdenationalizationofmarkets,politicsandlegalsystemsi.e.the
useofthesocalledglobaleconomy.Globalizationreferstoanextensionbeyondnational
bordersofthesamemarketforcesthathaveoperatedforcenturiesatalllevelsofhuman
economicactivity(villagemarkets,urbanindustries,orfinancialcenters).Itmeansthatworld
tradeandfinancialmarketsarebecomingmoreintegrated.Growinginternationalizationof
business has its impact on HRM in terms of problems of unfamiliar laws, languages,
practices,competitions,attitudes,managementstyles,workethicsetc.HRmanagershavea
challengetodealwithmorefunctions,moreheterogeneousfunctionsandmoreinvolvement
inemployeespersonallife.
Workforce Diversity According to Thomas (1992), dimensions of workplace diversity
include,butarenotlimitedto:age,ethnicity,ancestry,gender,physicalabilities/qualities,
race,sexualorientation,educationalbackground,geographiclocation,income,maritalstatus,
militaryexperience,religiousbeliefs,parentalstatus,andworkexperience.Theroleofthe
HumanResourceManagerisevolvingwiththechangeincompetitivemarketenvironment
andtherealizationthatHumanResourceManagementmustplayamorestrategicroleinthe
successofanorganization.Organizationsthatdonotputtheiremphasisonattractingand
retaining talents may find themselves in dire consequences, as their competitors may be
outplayingtheminthestrategicemploymentoftheirhumanresources.Withtheincreasein
competition,locallyorglobally,organizationsmustbecomemoreadaptable,resilient,agile,
and customerfocused to succeed. And within this change in environment, the HR
professionalhastoevolvetobecomeastrategicpartner,anemployeesponsororadvocate,
andachangementorwithintheorganization.Inordertosucceed,HRmustbeabusiness
drivenfunctionwithathoroughunderstandingoftheorganizationsbigpictureandbeableto
influencekeydecisionsandpolicies.Ingeneral,thefocusoftodaysHRManagerison
strategic personnel retention and talents development. HR professionals will be coaches,
counselors,mentors,andsuccessionplannerstohelpmotivateorganizationsmembersand
theirloyalty.TheHRmanagerwillalsopromoteandfightforvalues,ethics,beliefs,and
spiritualitywithintheirorganizations,especiallyinthemanagementofworkplacediversity.
Thefuturesuccessofanyorganizationsreliesontheabilitytomanageadiversebodyof
talentthatcanbringinnovativeideas,perspectivesandviewstotheirwork.Thechallenge
andproblemsfacedofworkplacediversitycanbeturnedintoastrategicorganizationalasset
ifanorganizationisabletocapitalizeonthismeltingpotofdiversetalents.Withthemixture
oftalentsofdiverseculturalbackgrounds,genders,agesandlifestyles,anorganizationcan
respondtobusinessopportunitiesmorerapidlyandcreatively,especiallyintheglobalarena,
whichmustbeoneoftheimportantorganizationalgoalstobeattained.Moreimportantly,if
theorganizationalenvironmentdoesnotsupportdiversitybroadly,oneriskslosingtalentto
competitors.Thisisespeciallytrueformultinationalcompanies(MNCs)whohaveoperations
onaglobalscaleandemploypeopleofdifferentcountries,ethicalandculturalbackgrounds.
Technologicaladvances
There is a challenging task of adapting workplace to rapid technological changes which
influencethenatureofworkandgenerateobsolescenceAdvancedtechnologyhastendedto
reducethenumberofjobsthatrequirelittleskillandtoincreasethenumberofjobsthat
requireconsiderableskill,ashiftwerefertoasmovingfromtouchlabourtoknowledge
work..Thereisnewnewworkingtechnology.Inthissituationorganizationshavetochange
ittechnology.Newtechnologycreatesunemploymentandinotherhand,therecomesscarcity
ofskilledmanpower.Likethis,technologicalchangebringsdifficultiesandchallengesin
organization.
Changesinpoliticalandlegalenvironment
OrganizationalRestructuring
Many organizations have restructured in the past few years in order to become more
competitive.Also,mergersandacquisitionsoffirmsinthesameindustrieshavebeenmade
to ensure global competitiveness. The megamergers in the banking, petroleum, and
telecommunicationsindustrieshavebeenveryvisible,butmergersandacquisitionsoffirms
inmanyotherindustrieshaveincreasedinrecentyears.Aspartoftheorganizationalchanges,
manyorganizationshaverightsizedeitherby
(1)Eliminatinglayersofmanagers,
(2)Closingfacilities,
(3)Mergingwithotherorganizations,or
(4)Outplacingworkers.
Acommontransformationhasbeentoflattenorganizationsbyremovingseverallayersof
managementandtoimproveproductivity,quality,andservicewhilealsoreducingcosts.Asa
result,jobsareredesignedandpeopleaffected.OneofthechallengesthatHRmanagement
faceswithorganizationalrestructuringisdealingwiththehumanconsequencesofchange.
Thehumancostassociatedwithdownsizinghasbeenmuchdiscussedinthepopularpress:a
survivorsmentalityforthosewhoremain,unfulfilledcostsavingsestimates,lossofloyalty,
andmanypeoplelookingfornewjobs.Whereasmanylargefirmshavecutjobsbyreducing
theirworkforces,manysmallerfirmshavecontinuedtocreatejobs.Thisisparticularlytrue
inhightechnologyindustries,suchassoftwaredevelopment.Theseentrepreneurialfirmsare
facedwithgrowth,whiletryingtoattractsufficientworkerswithflexiblecapabilitiesandto
conservefinancialresources.MorediscussiononHRsroleinorganizationalrestructuringsis
focusingonstrategicHRplanning.Consequently,inbothlargeandsmallorganizationsthe
managementofHRactivitiesiscrucial.
MobilityofProfessionalPersonnel
One of the interesting facts will be increase in the mobility of various managerial and
professionalpersonnelbetweentheorganizations.Asindividualdevelopgreatertechnical
and professional expertise, their services will be greater demand by organization in the
environment.
Conclusion
ToconcludethatitcanbesaidthatHRpracticeisbecomingmoreandmorechallengingday
byday,theyhavetofacelotofproblemslikeretention,attractionofemployee,dealingwith
different cultural people, managing work force diversity, technological and informational
changestoovercomewiththesechallengestraining(Crossculturaltrainingandtechnological
andinformationaltraining)isnecessaryofHRpeople.Toreducemobilityofprofessional
personnelHRpeoplehavetomotivatethemfrommonetaryandnonmonetarytechniques.
Properperformanceevaluationsystemandpropercareerdevelopmentplansshouldbeused
in the organization to reduce professional mobility. Following the challenges posed by
globalization, it is hoped that the HR professionals will not only destroy the stereotype
routine methods of doing job but would launch HR full potentials for more positive
contributionstoemployeeswellbeingandorganizationbuilding.
References
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Hudson Institute, entitled Workforce 2020, has highlighted some of the most important
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