Human Resource Management

Challenges of Human Resource Management

Challenges of Human Resource Management

Challenges of Human Resource Management

Human Resource Management is the process of managing people in an organization in a systematic and organized manner. The main goal of Human Resource management maximizes the productivity by enhancing the efficiency of employees in an organization.

Human resource management operates in an open environment. So, it is affected by internal and external changes in the environmental forces. It operates in a dynamic environment; hence, the change may create opportunities as well as threats to the organization. To manage efficiently and accomplish the goals of an organization, Human Resource Management is composed of various interrelated activities.

The main issue behind human resource management challenges is the emerging trends in the organizational environment and policies/procedures to encounter such issues to achieve organizational objectives. The primary concern of it is how to deal with people in the organization. Due to this ever-changing socio-economic, technological and political condition, the HR managers shall have to face more problems in the future in the management of the workforce.

These challenges can be studied under three dimensions as follows:

(1) Environmental Challenges

Environmental challenges refer to forces and institutions that are beyond the access of management. They are related to the external forces that exist in the outside environment of an organization and can influence the performance of the management of the organization. These forces are external to the organization and beyond the control of management. Hence, the managers face difficulties in managing such environmental issues. These can be regarded as threats to management & should be handled in a proactive manner. Environmental challenges consist of the following factors:

  • Globalization Movement
  • Change in Economic Outlook
  • Change in Political Environment
  • Change in Socio-cultural Environment
  • Change in Technological Environment.

(2) Organizational Challenges

Organizational challenges are internal to the firm, often they are the by-product of environmental challenges. Although these challenges are evolved as a byproduct of the environmental challenges these can be controlled by the management of the organization too much extent. The management has control over these issues and can be managed by efficient management. Moreover, under organizational challenges, we review the components of the specific environment of the company. When the workforce of an organization is effectively used in combination with other factors of production, the opportunities of the environment are availed and the threats are eliminated. It consists of the following aspects:

  • Work Force Diversity
  • Organizational Objectives
  • Downsizing
  • Business Process Re-engineering
  • Decentralization
  • Management Of Human Relation
  • Computerized Information System.

(3) Individual Challenges

These forces are related to the personal aspect of the organization. The decisions related to the specific individual employees are included in the individual challenges for the HRM. It includes all the complexities that are raised due to organizational interaction with people. The organizational issues are also affected by the fact that how employees are treated within the organizations. These are similar to the organizational challenges but are primarily concerned with the individual. Some of its components are as follows:

  • Brain Drain
  • Individual Norms And Values
  • The mobility of Professional personnel between organizations
  • Aspirations of Employees.


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