Challenges of HRM

Challenges of Human Resource Management 

Some major Challenges of HRM are as follows:

1) Technological Advancements: Latest technological advancements have resulted in a reduction of those jobs which need less-skilled people and have increased the number of jobs that need more skilled people. This has led to the unfolding of the concept of knowledgeable work from simply work. However, replacement followed by retraining of a few employees is also needed at times.
2) Globalization: It affects various available jobs in terms of their quantity and type. Due to globalization organizations are required to manage complex issues such as people management in different topographical cultures, legal environments, and conditions of business. Various HRM functions like succession planning, recruitment, selection, development, compensation, remuneration, etc. are required to be redesigned to consider the global management differences.

3) Shortage of Skill: It is a very difficult task for every organization to hire and retain talented employees Every organization makes all possible efforts to get the most talented employees of its competitors. HRM should create and execute policies and practices to overcome these challenges by giving performance-related pay, benefits, and effective recruitment techniques.

4) Market Challenges: For fulfilling the needs of the customer in a quicker, desirable, and cost-effective, manner, organizations must incorporate total quality management and business process re-engineering programs. These programs need that HRM must be concerned with modifying work procedures, training, compensation, job design, etc.

5) Changing Power Structures: Reducing the levels of hierarchy has led to the transformation of traditional structures to modem decentralized organizations. This has resulted in the freedom of acquiring relevant information for the concerned employees, especially in knowledge-based organizations thereby reducing the centralization of powers.

Top 10 Human Resource Management Challenges (HRM)

6) Knowledge Management: Knowledge management is gaining importance as the utilization of knowledge is increasing. The challenge for HRM is to build a proper system of knowledge that can be easily accessible to employees, encourage effective development, and could put the right information in front of employees at right time. The knowledge in an organization should be organized in a knowledge management system to address certain business projects, files, tasks, etc.


7) Dynamic Organizational Culture: Developing, transforming, and maintaining an energetic and dynamic work culture is a difficult task due to the increasing focus on competency of human resources Managers also feel that modern methods of HRM are a hindrance in making maximum utilization of human resources.

8) Training Challenges: Formulating training programs that are most suitable according to the organization‘s learning needs, is a major challenge for the business. However, the main issue involved here is whether the training and development programs should be formulated centrally or by considering individual needs.

9) Changed Employee Expectations: The workplace is changing and so are the expectations of the employees. Change in technology, and the environment has resulted in the changing desires and requirements of personnel. Attractions such as job security, remuneration, and housing are no more able to attract, retain and motivate employees. 
Employees now want to have flexible working hours, authority, and status. Now a day’s employees are focused on building their own careers, if they feel that their skills have become stagnant and management is not providing them with new opportunities to move on, they may switch from their workplace. 
This challenge can be overcome by defining their role and responsibilities clearly, offering professional and skill development opportunities, connecting employees with the company’s culture, etc.

10) Changing Workforce Demographics: Today, the workforce in organizations is becoming more diverse and companies are also considering different employee issues and are trying to maximize employee benefits. The evolving values of the workforce are different from the traditional values. Therefore, HRM requires identifying the probable employee issues and making such exchange among the people and the organization which is beneficial for both.


11) Globalisation: It affects various available jobs in terms of their quantity and type. Due to globalization, organizations are required to manage complex issues such as people management in different topographical cultures, legal environments, and conditions of business. Various HRM functions like hiring, development, and remuneration are required to be adapted to consider the global management differences.


12) Technological Advancements: Latest technological advancements have resulted in a reduction of those jobs which need less-skilled people and an increase in the number of jobs that need more skilled people. This has led to the emergence of the concept of knowledge work from “work’. However, replacement followed by retraining of a few employees is also needed at times.


13) Market Challenges: For fulfilling the needs of the customer in a quicker, desirable, and cost-effective, manner, organizations must incorporate total quality management and business process re-engineering programs. These programs need that HRM must be concerned with modifying work procedures, training, compensation, job design, etc.


14) Shortage of Skill: It is a very difficult task for every organization to hire and retain talented employees Every organization makes all possible efforts to get the most talented employees of its competitors. HRM should create and execute policies and practices to overcome this challenge by giving performance-related pay, benefits, and effective recruitment techniques.


15) Knowledge Management: Knowledge management is gaining importance as the utilization of knowledge is increasing. The challenge for HRM is to build a proper system of knowledge management that can encourage effective development and exploitation of knowledge.


16) Changing Power Structures: Reducing the levels of hierarchy has led to the transformation of traditional structures to modem decentralized organizations. This has resulted in the freedom of acquiring relevant information for the concerned employees, especially in knowledge-based organizations thereby reducing the centralization of powers.


17) Training Challenges: Formulating training programs that are most suitable according to the organization’s learning needs, is a major challenge for the business. However, the main issue involved here is whether the training and development programs should be formulated centrally or by considering individual needs.


18) Dynamic Organisational Culture: Developing, transforming, and maintaining an energetic and dynamic work culture is a difficult task due to the increasing focus on competency of human resources Managers also feel that modern methods of HRM are a hindrance in making maximum utilization of human resources.


19) Changing Workforce Demographics: Today, the workforce in organizations is becoming more diverse and companies are also considering different employee issues and are trying to maximize employee benefits. The evolving values of the workforce are different from the traditional values. 

Therefore, HRM requires identifying the probable employee issues and making such exchange among the people and the organization which is beneficial for both.


20) Changed Employee Expectations: Changes in the HR profile have resulted in the changing desires and requirements of personnel. Attractions such as job security, remuneration, and housing are no more able to attract, retain and motivate employees. People now want to be empowered and have a good status. This challenge can be overcome by dealing with privacy issues of employees, preventing sexual exploitation, promoting ethical practices, etc.

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What are the challenges of human resource management
(HRM)?

Human resource management challenges can vary somewhat from one setting to another, but there is a core set of challenges that are likely to apply to just about every type and size of business. The challenges to dealing with changes in operating procedures, employee turnover balance the need to compensate employees appropriately with the need to keep the company financially solvent, and even the need for ongoing employee training processes. Construction and structure are likely to be part of human resources. Those issues need attention and refinement. Without taking the time to identify and tackle the challenges of human resource management, the company’s chances of thriving are greatly reduced. 

Many of the challenges of human resource management are focused on the employees associated with the organization. Within this set of issues, human resources personnel will need to consider the effectiveness of screening and hiring new employees, the mechanisms in place to properly train those new hires and even a benefits package. How to go about structuring is likely to attract qualified candidates. The challenges don’t end once an employee is on board and trained properly; Human resources efforts continue in the form of working on compensation that prevents those valuable employees from seeking opportunities elsewhere, implementing processes that assist with employee evaluation, and in general ensuring that employees Have what it takes to be productive and remain an asset. company.

 

Other types of human resource management challenges are also found in just about any organization. These may focus on how to work with managers, executives, and company owners and executives to ensure that the business is in compliance with all current labour laws that apply in the company’s area of ​​operation. . Depending on how often those laws are updated, educating owners and executives on these changes and working with managers to implement necessary changes to company policies and procedures can be an ongoing effort.

 

Amidst the many challenges of human resource management, business needs to be constantly on the lookout for opportunities to develop future leaders. This may mean being aware of the potential of different employees and working with managers and others to merge additional training. Although sometimes overlooked or viewed as a function that is entirely within the domain of managers, human resources personnel can often see potential in employees that others overlook and by the level of interest and potential employees. Take steps to ascertain the potential achieved. within the company organization. This particular challenge may be hindered or facilitated by general corporate culture, and current management’s willingness to see the wisdom in investing more resources in some employees as a means of preparing for the future.

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