Challenges of hr prospects free essay sample

Abstract Human resource element works towards the Vision, Mission and Goals of an organization. The three roles of HRM in any organization are transactional, transformational, and transitional. The challenges faced by human resource managers in India are naturally evolving with the ever-transforming scenario in corporate India. Some of the major challenges which HR faces in India today are discussed hereunder. Key words: Challenges, Human Resource, Talent, changes. Introduction Human resources are the life blood of an organization. Despite the application of technology in modern business management, human resources are still relevant and most adaptive resources of the organization. The essential attribute of HR assist the enterprise to make rightful decisions and respond effectively to the threats and opportunities within the environment of the organization. Thus the enterprise depends highly on its HR for success and survival. The management of HR is complex and problematic because the individuals as workers hardly adapt or voluntarily embrace the objectives of the organization. As individuals, the employees have needs, aspirations, motivations, desires and interests which influence their behaviour at work. Human Resources Management and Planning are useful tools employed in harmonizing the needs of the employees with the goals and objectives of the organization on a continuous basis. The Challenges of Human Resource Management in a Globalised Economy The competitive pressures faced by the modern day enterprise for survival and success due to globalization and liberalization will continue to create room for future demand for organisational excellence. The new, global, complex, and often chaotic world of the Multi- national Enterprises requires a new strategic focus and new capabilities from HR just as it does from other management functions. Today’s top 10 Human Resource Management Challenges Due to the fluctuating economy as well as local and global advancements, there are many changes occurring rapidly that affect HR in a wide range of issues. In the Survey of Global HR Challenges: Yesterday, Today and Tomorrow, disclosed the following top 10 human resource management challenges: Challenges % of Companies 1. Change management 48% 2. Leadership development 35% 3. HR effectiveness measurement 27% 4. Organizational effectiveness 25% 5. Compensation 24% 6. Staffing: Recruitment and availability of skilled local labor 24% 7. Succession planning 20% 8. Learning and development 19% 9. Staffing: Retention 16% 10. Benefits costs: Health welfare 13% Facing Modern HR Challenges Head on: The proliferation of technology and changes in the business environment have increased the importance of human resources in the modern world. The major challenges facing human resources arise from this elevation of human resource activities to a core strategic function. Managing Globalization It is important for an HR Manager to study people management practices before implementing new practices which are global in nature. It has become a challenge for the HR to educate its workforce on how globalization can be leveraged and how an individual employee benefits or is affected by it. Instead of thrusting new practices upon them, it is ideal to study the existing practices which are in place. Developing Leadership Skills It is not just about knowledge, experience and expertise it is also about developing the right soft skills to give shape to the future leaders. Since the global economic and industrial scenario is very volatile and dynamic, what is required now is a skill set in the workforce which distinguishes them as team leaders. Finding and Retaining Talent The primary challenge facing human resource is to have the right people ready at the right time at the right place. The human resources of an enterprise, hitherto considered as just another resource such as land or capital, are now the key differentiator among firms, and as such the most critical source of competitive advantage. The increased competitiveness among firms ensures that finding new ways to increase the level of talent in the organization remains the key challenge facing human resources. Retaining existing talent is easier than hiring new employees. Possible interventions include custom-made compensation packages and fringe benefits, job enrichment, autonomy, better working conditions, and more. Ensuring Employee FIT Ways to ensure employee-organization fit include selecting employees based on the ability to do the job hiring employees who value teamwork and who can work with other employees hiring employees whose personal values and outlook match organizational values and culture Firms have 7. 5 percent higher revenue growth, 6. 1 percent higher profit growth, and 17. 1 percent lower turnover compared to firms that do not adopt this strategy. Ensuring Employee Competence The dimensions of HR challenges in this regard include: Understanding the employee’s innate skills and competencies and providing employees with opportunities to apply these skills for the benefit of the organization Skill enhancement of the workforce to promote adaptability, resilience, and agility Adopting a market driven approach. Adopting a Bottom -Line Oriented Approach Another major challenge facing human resources is to integrate its functional activities with the company’s strategic goals. This entails taking a bottom-line oriented approach while making decisions or framing policy. The key role of human resources in overcoming such challenge includes: Devising and implementing various motivational approaches, heralding a shift from performance-oriented pay to results-oriented remuneration or gain-sharing. Changing employee mindset from a process-oriented approach to a customer-oriented approach. Initiatives such as Total Quality Management, Six Sigma, and the like play a major role in this regard. Managing Diversity Managing diversity ranks among the most underestimated challenges confronting human resource. The dimensions of workplace diversity include age, ethnicity, gender, physical abilities, race, sexual orientation, educational background, geographic location, income, marital status, religious beliefs, parental status, and experience. A key challenge facing human resources is to manage and retain such diverse talent. The dimensions of workforce diversity challenge include: Reconciling the corporate culture to accommodate diversity and individual sensitivities Thinking globally and acting locally, by being responsive to the culture of the region, adapting to the societal requirements of host societies, and complying with local labor legislations. Managing Change Change is the only constant in today’s business environment, forcing organizations to keep pace with such changes constantly and rapidly to exploit new opportunities. Change takes the shape of organizational restructuring, mergers and acquisitions, right sizing, implementing outsourcing, providing telecommuting opportunities for employees, and the like. Focused change intervention increases productivity, improves organizational communications, improves process efficiency, improve quality, and raises employee morale. The challenges related to change for human resource management include: Helping employees overcome resistance to change by convincing them about the bigger picture Provide leadership for the change processes Ensuring stability of systems and processes during the change process Equipping employees to deal with the changed realities. Conclusion The role of the HR manager must parallel the needs of the changing organization. Successful organizations are becoming more adaptable, resilient, quick to change directions, and customer-centered. Within this environment, the HR professional must learn how to manage effectively through planning, organizing, leading and controlling the human resource and be knowledgeable of emerging trends in training and employee development. References