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Emerging Challenges in HRM

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Kunal Madaan

on 28 April 2015

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Transcript of Emerging Challenges in HRM

Emerging Challenges in HRM

Based on Jim Harvey's speech structures
HR managers are facing many challenges in present business scenario like Globalization, workforce diversity, technological advances, changes in political and legal environment and changes in information technology. All these challenges increase the pressure on HR managers to attract, retain and nurture talented employee. HR professional can’t ignore these challenges rather they ought to be in line to design and execute innovative mechanisms of developing skills and competencies of human resources to prepare them to accept the emerging challenges.

Challenges In HRM in Modern Management
Workforce Diversity
Technological Advances
Changes in Political & Legal Environment
Changes in Economic Environment
Revolution in Information Technology
Mobility of Professional Personnel
At a political and economic level, globalization is the process of denationalization of markets, politics and legal systems i.e. the use of the so-called global economy. Globalization refers to an extension beyond national borders of the same market forces that have operated for centuries at all levels of human economic activity (village markets, urban industries, or financial centers). It means that world trade and financial markets are becoming more integrated. Growing internationalization of business has its impact on HRM in terms of problems of unfamiliar laws, languages, practices, competitions, attitudes, management styles, work ethics etc. HR managers have a challenge to deal with more heterogeneous functions and more involvement in employee’s personal life.

Dimensions of workplace diversity include, age, ethnicity, ancestry, gender, physical abilities/qualities, race, sexual orientation, educational background, geographic location, income, marital status, military experience, religious beliefs, parental status, and work experience. The future success of any organizations relies on the ability to manage a diverse body of talent that can bring innovative ideas, perspectives and views to their work. With the mixture of talents of diverse cultural backgrounds, genders, ages and lifestyles, an organization can respond to business opportunities more rapidly and creatively, especially in the global arena, which must be one of the important organizational goals to be attained. More importantly, if the organizational environment does not support diversity broadly, one risks losing talent to competitors.
Thus, a HR manager needs to be mindful and may employ a "Think Global, Act Local" approach in most circumstances. With the nation's strive towards high technology and knowledge-based economy, foreign talents are lured to share their expertise in these areas. Thus, many local HR managers have to undergo cultural-based Human Resource Management training to further their abilities to motivate a group of professionals that are highly qualified but culturally diverse.
Furthermore, the HR professional must assure the local professionals that these foreign talents are not a threat to their career advancement. In many ways, the effectiveness of workplace diversity management is dependent on the skilful balancing act of the HR manager.
Work Force Diversity
Technological advances
There is a challenging task of adapting workplace to rapid technological changes which influence the nature of work and generate obsolescence. Advanced technology has tended to reduce the number of jobs that require little skill and to increase the number of jobs that require considerable skill. There is a shift to new working technology, which we refer to as, moving from touch labor to knowledge work. In this situation, organizations have to change their technology. New technology creates unemployment and on the other hand, there comes scarcity of skilled manpower. Like this, technological change brings difficulties and challenges in organization.
Changes in political and legal environment
Changes in political and legal environment means changes in political parties and rules and regulations due to which new laws come and you have to follow all laws while doing business. Many changes are taking place in the legal and political framework within which the industrial relation system in the country is now functioning. It is the duty of human resource and industrial relations executives to fully examine the implication of these changes and bring about necessary adjustments within the organization so that later, optimum utilization of human resource can be achieved. It is the responsibility of Human Resource manager to anticipate the changes and prepare organization to face them without any breakdown in its normal functioning
Information technology has influenced HRM through human resource information systems (HRIS) that streamlines the processing of data and make employee information more readily available to managers. More recently, there has been and in the future there will be an impact of revolutionary computerized information system in the management. It covers two primary areas:
1. Use of electronic computers in managerial decision making process
2. In future, computerized information system will have increasing impact at the coordinate and strategic levels of organization
Changes in economic environment
This includes examination of the impact of a number of factors on production. Some of the key factors are:
The scarcity of raw materials and other inputs including power and electricity
Encouragement of the culture of consumerism
Increasing consumer awareness
Demand for quality products
Continuing upward trend in the inflationary pressures with decrease in the purchasing power of rupee and its spiraling effects in the ever increasing aspirations of workers for higher wages and other material benefits
Mounting costs on the employee welfare and other benefits

In an inflationary economy, the resources tend to become scarce and the costs of machine, materials and labor multiply. These push up the capital and running costs.
Revolution in Information Technology
Mobility of personnel
One of the interesting facts is the increase in the mobility of various managerial and professional personnel between the organizations. As individual develop greater technical and professional expertise, their services will be in greater demand by organization in the present environment.
1. Cross cultural training of HR personnel so that they understand other cultural people
2. Motivate Professional personnel more and more so that do not change organization more frequently. Financial motivation is not always required you can motivate through non financial motivators like encouragement, training of employee, job satisfaction
3. HR should adopt the change at internet speed i.e. very high speed.
4. Shifting HR strategy with changing economy – strategy of HR should be agile, capable of flexing and adaptive to changes in the economy.
How to overcome these challenges?
5. Technical changes in the workplace often require the implementation of additional training for workers. As training and development is generally the realm of the HR department, this creates yet another challenge for human resource managers. HR must first determine what training is necessary and then implement training measures to ensure all workers can keep up with technical changes. Human resource managers must also determine when it may train existing employees, and when it must search for new workers to fill technical positions within the organization
6. Training of HRIS – Human resource information system should be given to the HR managers or HR professional so that they can overcome Information Technology challenges.
7. Proper performance evaluation system and proper career development plans should be used in the organization to reduce professional mobility.
How to overcome these challenges?
To conclude, it can be said that HR practice is becoming more and more challenging day by day, they have to face lot of problems like retention, attraction of employee, dealing with different cultural people, managing work force diversity, technological and informational change. To overcome these challenges, training (Cross cultural training and technological and informational training) is necessary of HR people. To reduce mobility of professional personnel, HR people have to motivate them from monetary and non monetary techniques. Also, proper performance evaluation system and proper career development plans should be used in the organization to reduce professional mobility.
Personnel VS HRM
Employee Behavior
Manager's task
Job Classification
Employee Devpt.

Employee Relations
Conformity to rules
Best fit
Fixed/Grade based
Hierarchy of Labour
For performance deficiency
Conflict resolution
Seek flexibility
PGO fit
Performance based
Team work
For continuous improvement
Recent Changes in HRM
Team work

Learning organizations


Culture building

Performance based payments

Surplus workforce
Full transcript