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HUMAN RESOURCE MANAGEMENT CHALLENGES

Aamer Hussain Saddiq

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What do We Need to Know?

1. Describe the evolution of human resource departments.

2. Define the external challenges that are reshaping the quality of today’s workforce.

3. Identify the internal organizational challenges to human resource management.

4. Describe the international challenges faced by human resource management.

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Historical Foundation

Early Causes and Origins In earlier organizations most work was done in

small groups. However industrial revolution change the nature of work. Expensive facilities steam engines and other innovations required large number of people to work to gather to achieve economies of scale.

In the late 1980 problems caused by industrialization leads to creating the post of welfare secretary. These existed primarily to meet worker needs and to improve conditions for workers.

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Historical Foundation

Scientific Management and Human Needs

Primitive HRDevelopment of selections testHawthorne experiments

Modern InfluencesGovernment interventionLegal forces

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Challenges Faced by Human Resource

Management

HRMChallenges

ExternalChallenges

InternalChallenges

International Challenges

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External Challenges

Technological AdvancementEconomic ChallengesPolitical PressureGovernment Challenges

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External Challenges

Technological Advancement

The ability of a computer or other machine to perform those activities that are normally thought to require intelligence.

Automation (Robots and Mainframe Computers) is another way in which technology affects the field of HR management

HR professionals may have to contend with the increased worker alienation since the job opportunities may shrink along with opportunities for the socialization on the job

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External Challenges

Economic Challenges The way business is conducted has changed rapidly during the past

few years and will continue to do so. Cost of doing business is increasing day by day. Over the course of business cycle, manager and HR department

must adjust to change their organizations business plans. Many companies uses contract labor to satisfy its human resource

needs during the period of peak business activity.

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External Challenges

Government Challenges Federal laws regulating the employee-employer relationship

challenge the methods HR department use Laws such as Occupational Safety and Health act and Civil Rights

Acts make the major demand on HR department.

Political Challenges Political parties influence regarding employees compensation,

rotation, promotion, recruiting and selection also affecting the

HR functions.

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Internal Challenges

UnionsInformation SystemOrganizational Culture and

ConflictsCustomers ExpectationsSuccession Planning

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Internal Challenges

Unions In the HR environment unions represent an actual challenge to

unionized companies and a potential challenge to a company that are not unionized.

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Internal Challenges

Information system Managers and HR department requires large amounts of detailed

information. The acquisition, storage, and the retrieval of information is

significant challenge. Massive information systems challenge the HR department face is

the ability to safeguard privacy of the employee records.

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Internal Challenges

Organizational Culture and Conflicts

Organizational culture is the product of all the organization’s features: its people, its success, and its failures.

The challenge for the HR managers and HR specialist is to adjust proactively to the culture of organization.

Depending on the culture of the organization and the attitudes of the people, HR challenges may arise from conflicts among groups.

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Internal Challenges

Succession Planning It is a process for identifying and developing internal personnel with

the potential to fill key or critical organizational positions.

Customers Expectations Customers expectations are also representing major challenges to

HR department

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International Challenges

Cultural factorsEconomic system Legal and Industrial Relations

factorsPersonal Selection Procedure Training and Development PracticesThe Use of Pay incentives

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International Challenges

Cultural factors Countries differ in their culture-in the basic values their citizens

adhere to, and the ways these values manifest themselves in the nations arts, social programs, politics and the ways of doing the things.

Economic system Differences in the economic system also translate into differences in

HR management policies Countries also differ in labor cost and working hours.

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International Challenges

Legal and Industrial Relations factors

Legal as well as industrial relations the relationship among the worker, unions, and the employers) also vary from country to country.

Personal Selection Procedure

Employers around the world tend to use differ criteria and the methods for selecting employees.

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International Challenges

Training and Development Practices

The amount of training firms provide varies substantially from country to country.

The Use of Pay incentives Countries also varies in their use of pay Incentives.

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Conclusion

Even through HR management confronts a variety of external, internal and international challenges its exist to further the organizations strategy with maximum effectiveness and efficiency in an ethically and socially responsible way. If these challenges are not met, HR management does not achieve its purpose.

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