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Table of Contents
Introduction.................................................................................................................................................2
Aim..............................................................................................................................................................2
Current HRM issues:....................................................................................................................................2
 Technology Advancements:.............................................................................................................2
 Legal Ethics:.....................................................................................................................................3
 Development of Leadership:............................................................................................................3
 Training and Development:.............................................................................................................3
 Maintaining Balance between Employees and Management:.........................................................3
 Diverse Team Building:....................................................................................................................3
 Employee Turnover:........................................................................................................................4
Literature Review:.......................................................................................................................................4
Recommendations:.....................................................................................................................................5
Conclusion:..................................................................................................................................................6
References:..................................................................................................................................................6

Introduction
The process of human resource management (HRM) is to select and recruit employees. It
provides training and development, provides orientations, appraises the employee's performance,
provides benefits, decides compensations, and build strong relations with workers and the trade
unions. HRM plays an important role in maximizing the organization’s performance. It links
human resource functions with the goals of the organization to enhance the performance. HRM
plays an effective role in stabilizing organizations for continuous change. It also influences the
organizational culture in the premises of business along with establishing procedures, standards,
and guidance of the company that motivates the employees to learn and adopt the defined
practices and behaviors within the organization premises. HRM act as a counselor or mediator to
sort conflicts and differences. They take the right actions to resolve the issues. The department
organizes meetings, seminars, and gatherings to build a good working environment among
employees and it also hires qualified candidates and provide training to them and motivate them
for sills, education and awards them with benefits and compensations (Abu-Nahel et al., 2020).
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Aim
The main aim of this study is to analyze the current human resource management problems that
are faced by organizations. The study will be explained with a detailed literature review and
recommendations.

Current HRM issues:

In the 21st century, as the IT sector is progressing very fast, the policies and progress of human
resource management are facing severe changes. The challenges that are raised in human
resource management now a day are very much different from those that were raised some years
ago.

 Technology Advancements:
Information technology is playing a role as a transforming instrument for architecting the
firms and business processes. The advancement in technology has provided many
advantages like efficiency, cost reduction, etc. the effect of the latest technology on the
qualification skill level of desired labor is an open issue in the analysis of the economy.
Although technology has many advantages it is reducing the employment level and skills
of workers. The restructuring effect seems to arise from job insecurity as well as from
overloaded work. Restructuring means the delayering of organizational structure which
will lead to thousands of job elimination. The restructuring includes salary freezing,
budget cuts, hiring contract-based employees, etc (Armstrong, 2006).

 Legal Ethics:
The stringent workers market and legislation enforcement on employment protection is a
good idea by which job reduction can be slowed down. The demographics factors like
education, age, earning, occupation, and race are the reasons behind job security issues.
The analysis is made that this is happening mainly due to flexible turn in the labor market
for many years. It is also contributing to the heightening vulnerability sense between
employees in the new economy. The view of workers is job security perceiving as
subjective feelings regarding future job security about their siltation of employment.

 Development of Leadership:
It is one of the major challenges of human resource management. Leadership
development has to be a strategic initiative. Human resource management is expected to
come up with effective tools, important structures, points of view, and processes to do
good selection and train future leaders for the companies. According to a report, it is
identified that the leadership development is a critical strategic initiative across the globe
that ensures about retaining of right employees, that the organizational culture will
support duties from within gain position of the market, and the future leadership roles
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will be taken by well-equipped managers so that the firm will be viable for a long period
of time.

 Training and Development:

The investment in training and development of newly hired recruits or employees of the
company is another issue that is being faced by human resource management. Many
businesses are facing difficulty in locating the resources for development and training
programs. The front line employees or top-level management works harder usually don't
have much time to attend these types of training and courses. It is because human
resource management does not explain to them that this course does not require a large
amount of money or time (Otoo, 2019).

 Maintaining Balance between Employees and Management:

Human resource management has a great responsibility to maintain a balance among the
interest of employees and management. Profit, sincerity, loyalty, commitment, and
cooperation are the different factors that are expected by management from employees
while security, safety, wages, and a good amount of salaries with career development,
participative working, and healthy work environment are those factors that are expected
from the management by the employees. So it is a little hard for human resource
management to maintain a balance among employees and management.

 Diverse Team Building:

The improvement and enhancement of connectivity will make the world a better place.
The challenge which is facing by human resource management is managing the
employees that come from diverse backgrounds and have different experiences and ideas.
The connectivity and to make a bond among those workers is a tough situation for HR.
there is now a responsibility for human resource management to develop a corporate
work environment which is beneficial and welcoming for every individual. The inclusive
team building is necessary because it brings fresh perspectives to the organization and it
also creates a diverse network chain (Podgorodnichenko et al., 2020).

 Employee Turnover:
In the context of human resources, employee turnover is the rate by which they leave the
company or organization. In simple, it tells how long the worker is staying in the
organization. Employee turnover is beneficial when an employee with poor performance
leaves but a high rate of turnover brings a high rate of economic issues as well because
the hiring and training of new workers will require a large amount of cost and time. This
challenge is very difficult to handle because it also affects the productivity of the
company when a highly skilled employee leaves (Stahl et al., 2020).
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Literature Review:
Retrenchment occurs in a business organization due to redundancy and the factors behind this is
the outsourcing of workers, sophisticated technology, surplus workers, relocation of business,
loss in business, restructuring, or merging and acquisition. Becker, (1968) gives a concept
regarding optimal-enforcement which helps in understanding the aftermath retrenchment effects.
The organization should not retrench workers without sustainable effect evaluations. It is also
discussed in the study of human resource accumulation by Baranano, (2001) and human
externalities by Einarsson and Marquis., (1996). Many studies have clearly shown the negative
impacts of employee’s retrenchment on human resource practices of organizations. According to
Das and Ghosh, it is not important that employee's retrenchment occurs when they are not
performing well in the organization but it can also be due to a bankruptcy situation or financial
crisis. After retrenchment, the workload gets increases on the remaining individuals and they
were also not prepared for any kind of change so it results in creating a negative effect in the
environment of the organization. The advancement in technology for improving the productivity
level in an organization leads to the retrenchment of employees. In (2013) Ochieno stated that
the latest technology methods no doubt increases the efficiency of work in an organization but
sometimes it comes up with the employee's retrenchment. According to Mariappanadar, the
approach of the collective mind can be used to obtain the net optimality to minimize
retrenchment practices. In (2013) Wandera suggested that there is a minor role of an employer in
building the performance of workers before the retrenchment and it leads workers not prepared
for the fulfillment of their jobs. It reduces the worker's morale and develops job insecurity in the
company. Many organizations practice the retrenchments of employees as a cutting cost
mechanism (Udin, 2020).

According to Nappinnai and Premavathy the reduction of employees gradually without firing
them is known as attrition, this happens because of retirement or resigns. This method is
unpredictable gradual and uncontrollable which ends up in workload reduction because of the
resignations. Two types of attritions happen in firms. One is known as involuntary attrition
which means firing employees and another involuntary attrition which means the quitting of
employees on their own wish. It is also possible that attrition arises because of good handshake
opportunities or retirement. There are various reasons behind the attrition in organizations which
include fewer opportunities for growth of the career, merge salaries, inferior supervision, talent
underutilization, no freedom of thought, and lack of recognition in the organization. The success
of any organization partly depends on the hiring and retaining of employees with great skill
combinations which are now threatened by job-hopping and a high level of employee attrition. In
(2010), Ho, Downe, and Loke discovered the factors that motivate employee attrition in young
and educated professionals in the service industry of Malaysia and they stated that these young
professionals are motivated by the pull or push factors. As a result of attrition, employers try to
manage daily activities with the help of a limited number of workers. In (2016), Kumar and
Yakhlef proposed that high attrition of employees produced information asymmetry in the
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different departments of an organization. Attrition also arises when workers don't take interest in
contributing to the organization anymore (Yusliza et al., 2019).

According to Aminudin, the retention of employees needs intrinsic motivation in which the
workers are rewarded based on their performances. The retention of employees is completely
different from the employee attrition scenario because it is the art of an individual's management.
Employee retention is effective in trust-building among the employer and workers; it has the
capability to build synergy between the different departments and it also promotes the
collaborative approach by connecting the emotions of workers in the same workplace. It
advocates efficiency and reduces the worker's turnover rate in HR by multi-tasking. In (2013)
Kehoe and Wright defined retention that it is a combined process of coherent and strategy to find
out the reasons why individuals are preferring to join that specific firm. The key detrimental of
job retention is job dissatisfaction while the policy of good retention always begins with the
process of hiring. Mobley's model describes that for achieving high retention of employees and a
low rate of turnover, the employer must reduce all the reasons which create the possibility of job
dissatisfaction (Zeebaree et al., 2019).

Recommendations:
The organization must have effective strategies for HR to compete in this world. The main focus
that HR must focus on is to overcome the cash and compensation issue. The compensation
should be provided on the employee's experiences. The organization has to struggle for
providing a positive work environment for its employee because it will minimize work stress.
Regular communication and exchange of ideas between employees and management is an
effective method to overcome the issues. Employee retention can be improved by a good level of
coordination and it also improves the effective relationship. The HR of an organization should
track the data of employees from time to time such as staff turnover, attrition, and absenteeism so
they can prepare planning and effective strategies to tackle these situations. The existing
traditional HR policies must be replaced by the latest and improved policies so human resource
management can tackle every issue by utilizing the latest methods. The main problem of job
quitting needs serious attention and this can control by extending the benefits programs of the
employees (Chand and Markova, 2019).

Conclusion:
From the above discussion, it is concluded that the human resource management in the
organization is facing a lot of challenges at present. These challenges are very much different
from the past several years so they require the latest solution and strategies to overcome them.
The main challenges in any organization are employee's job satisfaction and cost maximization
due to job quitting. This can be controlled by providing a positive work environment. The
compensation is another big issue that can be tackled according to the employee's experiences.
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The diverse team of experienced people definitely proved fruitful for the organization and it
leads the organization to a high level of standards. As studied above it is clear that these
challenges are temporary and they can be controlled by adopting the latest methods and updated
strategies. In this manner, any organization can increase its productivity and compete in this
world with any other organization.

References:
Abu-Nahel, Z.O., Alagha, W.H., Al Shobaki, M.J., Abu-Naser, S.S. and El Talla, S.A., 2020.
Human Resource Flexibility and Its Relationship to Improving the Quality of Services.

Armstrong, M., 2006. A handbook of human resource management practice. Kogan Page
Publishers.

Chand, M. and Markova, G., 2019. The European Union's aging population: Challenges for
human resource management. Thunderbird International Business Review, 61(3), pp.519-529.

Otoo, F.N.K., 2019. Human resource management (HRM) practices and organizational
performance. Employee Relations: The International Journal.

Podgorodnichenko, N., Edgar, F. and McAndrew, I., 2020. The role of HRM in developing
sustainable organizations: Contemporary challenges and contradictions. Human Resource
Management Review, 30(3), p.100685.

Stahl, G.K., Brewster, C.J., Collings, D.G. and Hajro, A., 2020. Enhancing the role of human
resource management in corporate sustainability and social responsibility: A multi-stakeholder,
multidimensional approach to HRM. Human Resource Management Review, 30(3), p.100708.

Udin, U., 2020. Renewable Energy and Human Resource Development: Challenges and
Opportunities in Indonesia. International Journal of Energy Economics and Policy, 10(2),
pp.233-237.

Yusliza, M.Y., Norazmi, N.A., Jabbour, C.J.C., Fernando, Y., Fawehinmi, O. and Seles,
B.M.R.P., 2019. Top management commitment, corporate social responsibility and green human
resource management. Benchmarking: An International Journal.

Zeebaree, S.R., Shukur, H.M. and Hussan, B.K., 2019. Human resource management systems for
enterprise organizations: A review. Periodicals of Engineering and Natural Sciences, 7(2),
pp.660-669.