Challenges of Human Resource Management: “Human Resources is considered as a significant asset for an organization and in the upcoming future, it will also show in the Balance Sheet”.
There are different assets that are vital for an organization such as fixed assets and liquid assets. Out of them, Human Resource is the best and the most valuable asset and adopting policies such as job rotation, performance-linked payment, empowerment, and so on. Being an employee in the field of employee welfare and social security with some additional benefits at the time of retirement such as health coverage, provident fund, pension, etc. is of high risk.
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The vital and significant role of the Human Resource Management team in preparing, obtaining, and maintain manpower for a long time is quite challenging. There are umpteen challenges for human resource department as similar to other departments.
As the social, economic, and technological conditions are changing, it will affect the business in complex ways and have a huge impact in the future too. Not only the business, but the employees are also getting affected by these ever-changing circumstances and the behavior of the human being is complex, but it is also tough to deal with it.
Top Challenges of Human Resource Management
The reactions of the individuals are identical in some of the identical situations. In this way, major challenges are also faced by human resource management professionals in the field of business and compromise with individual behavior. The first and the foremost function of the HR personnel is that they have to give pro-active and inventive responses towards all such challenges and the consequences too.
Here, we have jotted down some of the challenges that are always faced by the Department of Human Resource Management. Let’s begin.
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1. Adapting to Innovation
The technology in an organization works in a manner that the input converted into output with the help of manpower. All the repetitive activities of day to day operations are now done by the robot which is a dramatic change in the working environment. These changes have come into force so fast that there is more need for flexibility in the range of human resources.
2. Compliance with rules and regulations
There are various rules and regulations related to the labour in an organization in the state as well as the center level which swayed the policies and programs of the Human resource department to a great extent. Sometimes, the rules are overlapped by business firms. HR Personnel is abode by rules and regulations of the labour act and need to make changes by accepting all the legislations of the government from time to time.
3. Managing the Diversity of the Workforce
One of the important challenges that human resource management faces the diversity of manpower. It refers to increase the heterogeneity of the employees among different types of manpower such as women, physically handicapped persons, some backward groups, ethnic group and other retired defence personnel.
In today’s technological and globalized era, the main focus of globalization is on the various groups of people from different nations. The diversity in workforce signifies a different group of people from the same nation.
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To exemplify, loads of women have been appointed by the large organizations and industries and they started occupying the middle and higher level of positions in the organization. This is the biggest challenge in itself as compared to the conventional world where the workplace of India’ business firms is male-dominated.
There are significant implications of manpower diversity in an organization for the management. It is required for the manager to shift their approach of dealing with the employees equally to indicate the variations among them and keep following the policies so as to motivate inventiveness, make improvements in the productivity, minimizes the turnover of labour and avoids any sort of discrimination.
In this way, if the workforce is managed in a proper manner, then there will be good communication among employees, better relations and good atmosphere for working in the organization.
4. Meeting ambitions of employees
There is the existence of variation in employees in today’s world and the young generation has more expectations and aspirations as compared to the earlier generations. Today, the workforce has more focus on career and they are very clear about their future lifestyle as well as expectancies they want. In the career orientation, various changes have been observed that are seriously required to meet their over moon expectations.
Youngsters are becoming more and more aware of their high level of needs and the awareness spread among in the future employees more. The appropriate techniques needed to be formulated in order to fulfill the requirements of the employees by the Human Resource Personnel and grow suitable plans for the advancement of their career.
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5. Empower employees
The profile of manpower has been varying in industrial and other business firms. For the timely growth of an organization, it is required to have better, qualified and career-oriented employees so that their urge to do something inventive which will be beneficial for the business also. So, there are differences in the proportion of employees between the technical employees and the blue-collared ones.
A great level of participation is given by these employees to the company’s goal and decision making too. On the contrary, they want more to pave the way to their self-fulfillment. To encourage the employees, the HR department makes changes in the structure of the organization and redesigns it in a manner that the employees have enough freedom to take decisions while doing their jobs to achieve the goals efficiently.
Empowerment leads to providing sufficient information and has full control over the entire scenario of the job and they can do the job in their own way. Ample techniques are used to empower the employees starting from participation to the decision-making to the team of self-managed employees. In the near future, the team structures are followed by the organization and this will help the organization to encourage its employees in a free manner.
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The process of decision-making is necessary to empower the employees, utilize environmental opportunities and serve society as well as customers in a better way.
6. Managing Human Relations
The future of managing human relations is becoming more complicated than it is today. It is very difficult to motivate the young generation as compared to the earlier one. As there are some changes observed in the value system and the educational level is also increasing day by day. Large organizations are concerned about the great level of doubt and it is very common to have no reverence for authority figures.
Better education, as well as conscious workers, will be the future of manpower in an organization as they want to an avenue for self-needs and at the same token, they want to participate in all the associated activities of the workplace. In addition to this, the ratio of advanced and technical employees is more as compared to blue-collared workers and the female employees are increasing in the total manpower of an organization. It is also a problem to cooperate with the women employees in managerial positions at the workplace.
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Most of the workers do not want to get motivated in terms of money as they do have other related expectations that have to meet with the help of a job. However, a vital role is played by the non-monetary benefits in the workforce.
7. Dynamic Policies and Programs
In the near future, the Human Resource Manager will look over all the policies as well as policies for the organization, not only keep an eye over the personnel functions. As similar to that, the department of Human Resource Management is not responsible for managing the manpower but also responsible for the efficient and effective management of people within the premises of the organization.
This will maximize the attention of all managers from the top to the bottom level of positions. HR personnel is vital to play a key role in the better formulation of the people policies, plans and the execution of strategies in the company.
8. Build up of responsive business firm
Human Resource Management contributes towards the proper establishment of a responsive organization and creates an organization as customer-oriented. This can only be created with self-control, commitment as well as motivating the employees. There will be no existence of “Traditional Boss” in the future as they have to work in a team or as an internal consultant.
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9. The dynamic atmosphere for Work
There is a need to adopt the new ethics for work so that it will be helpful for the top-level management to enforcing as well as setting up the standards for quality. Due to a change in work ethics, it is required to redesign the entire scenario for work to give challenges to the employees. To exemplify, there should be an implementation of flexi-time as the timings for start and quit the job will be flexible for all the employees and this will be useful to shift the vision of motivation from external to essential factors.
10. Creating a competitive advantage
The core competencies needed to be developed by the firm and Human Resource personnel play an important role. It is a strength that is required for the development of the organization in the form of human resources, the capability of marketing and technological capability. Competitive advantage is generated if the business is organized by considering all the core competencies.
11. Outsourcing the functions of HRM
Most of the organizations have outsourcing routine HRM functions. Moreover, it emphasizes the strategic HR issues that have an impact on corporate performance as well as the value of shareholders. It includes the functions of the organizations on a daily basis and comprises of outsourcing such as Hiring, selection, job evaluation, compensation, training and so on. Proper outsourcing of these functions would allow the management to pay more attention to the core activities of the business.
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In short, Outsourcing is the way to get services from outside of the organization rather than doing it within the premises. In other words, it is known as Business Process Outsourcing.
Bottom Line
It is vital to know the issues of the Human Resource department so that one can put on accurate policies as well as procedures to deal with the challenges. Keep a better understanding of the benefits of employees, employment laws, development of leadership and other associated areas to stay ahead in the competition.
So it was all about the challenges of Human resource management, if you have any doubt then please comment below.