MNG10713 Assessment 2(1).docx

CHALLENGES FACED BY HRM 9
ASSESSMENT 2
HUMAN RESOURCE MANAGEMENT
CHALLENGES FACED BY HRM IN CONTEMPORARY BUSINESS ENVIRONMENT
ABSTRACT
The essay analyzes the present challenges faced by the Human resource departments and their future impact. It also suggests measures and competencies required to manage these challenges in future. The work illustrates various issues faced by HRs in present and future time, and elaborates each aspect in an effective manner.
Keywords: Issues, Challenges, HR, competencies.
INTRODUCTION
Nowadays due to technology development and globalisation the working environment in the global market is changing at a rapid pace. The changes can be studied as: external environment, internal environment and global competitive scenario. The present and future challenges at corporate work places can be illustrated at three levels: Challenges for the government, Challenges for the business and Challenges for individual employees. The governments may be concerned about limited available resources and growing population in addition to policy related issues. Business can face the challenges like local and global competition, and other policies dependent legal requirements. The challenges for individual employees may include career, job security, and skills. However, broadly we can identify that major challenges before HR and Companies are Change Management, Development of effective leadership, measurement of HR effectiveness, Organisational effectiveness, Compensation, Staffing of talented employees, Succession planning, Learning and development, Staff retention, and associated costs of benefits for employees (Villanova University,2018).
Change Management
Globalisation has increased the interconnections and interdependencies. The work force in the organizations also belongs to diverse cultural backgrounds, different languages, and different countries. It requires effective diversity management to utilize the skills and potential of available population. Managers need leadership qualities to prevent any chances of conflicts and crisis in the Company. He must have ability to influence the diverse groups of people towards attaining the oganisational goals (Biro,2012). Common traits like honesty, motivation, self confidence, cognitive skills and knowledge about business are hugely relevant for the employees and their managers to achieve the desired targets of the company. They also affect the working environment of the Company. In future, the employees will require open discussions about their performance, their targets achievement, training and improvements. The HR team should be more transparent for the employees in terms of appraisals and increments. The training about soft skills (like behavior) and Company regulations must be imparted to encourage positive work culture in the Company. Any differentiation on the basis of caste, skin colour, gender, ethnicity, and language must not be tolerated. It will improve the chances of equal opportunities for every employee and will develop a positive environment within the Company (AMA,2018).
Change management must consider human rights, and all the relevant issues affecting the employees. All the unfair practices must be eradicated, consumer issues and market issues must also be dealt effectively.
The Organisations have to change with time due to changing and developing technology, shifting market trends, economic downturns, white collar crime, increasing business competition, and changes in government laws and regulations. When the organizations adopt new ideas, if they fail to change with the changed ideas, they also fail. For effective change management, the HR must be aware of different types of business pressures in the competitive world. The Company can bring change to products, services, processes, leading to innovations in implementation and outcome. Moreover the change can be in behavior, culture, training and development, attitude or mindset (Virmani,2000).
Development of Effective Leadership
Developing future leaders will be another major challenge for HRM. Due to presence of various opportunities for top performers in the market, they increasingly switch their jobs. Hence, it is a tough task for the human resource departments to retain the existing talented work force.
The global market is subject to change so the managers require effective leadership skills to control unexpected events in business and manage crisis. HRM must involve innovative methods to maintain competitive advantage. The HRM processes are aimed to achieve high performance from employees through human resource planning, recruitment, decruitment, selection, orientation and training, performance appreciation, career development...