EXCUTIVE SUMMARY

This research paper is completely focused on the problems of human resources

management and its impact on organizational performance. This paper gives insight
why human resource management decisions are likely to have an important and
unique influence on organizational performance. The objective of this research is to
explore and identify the problems faced by Human Resource Management in
achieving organizational effectiveness. In this research paper we discuss that how
and why Human Resources Management is responsible for making the organization
productive and prospering the workforce. The purpose of this study therefore is to
assess whether human resource management practices, particularly recruitment and
selection, Staff performance appraisal, compensation, and training and development
practices influence its performance? Qualitative research methodology has been
carried out to understand the problems of Human Resources Management. Primary
and secondary data have been used gather information. Personal interviews and
questionnaire used to collect primary data. The research analysis was analysed
based on the response of the interviewees and responses of the questionnaire. The
findings of this research paper is that management might be able to increase the
level of commitment in the organization by improving satisfaction with
compensation, policies, and work conditions. Companies should involve their employ
as they are viewed as an indispensable source of competitive advantage. One way to
increase the job satisfaction at the workplace is expanding the interactions level with
employees in staff meetings and discussions of their issues. It will influence
commitment and will help theorganisation to enhance their productivity.
 CHAPTER I
INTRODUCTION
Human resource management (HRM or HR) is the strategic approach to the effective
and efficient management of people in a company or organization such that they
help their business gain a competitive advantage. It is designed to maximize
employee performance in service of an employer's strategic objectives. Human
resource management is primarily concerned with the management of people within
organizations, focusing on policies and systems. HR departments are responsible for
overseeing employee-benefits design, employee recruitment, training and
development, performance appraisal, and reward management, such as managing
pay and employeebenefits systems. HR also concerns itself with organizational
change and industrial relations, or the balancing of organizational practices with
requirements arising from collective bargaining and governmental laws. The overall
purpose of human resources (HR) is to ensure that the organization is able to achieve
success through people. HR professionals manage the human capital of an
organization and focus on implementing policies and processes. They can specialize
in finding, recruiting, selecting, training, and developing employees, as well as
maintaining employee relations or benefits. Training and development professionals
ensure that employees are trained and have continuous development. This is done
through training programs, performance evaluations, and reward programs.
Employee relations deals with the concerns of employees when policies are broken,
such as cases involving harassment or discrimination. Managing employee benefits
includes developing compensation structures, parental leave programs, discounts,
and other benefits for employees. On the other side of the field are HR generalists or
business partners. These HR professionals could work in all areas or be labour
relations representatives working with unionized employees. HR is a product of the
human relations movement of the early 20th Century, when researchers began
documenting ways of creating business value through the strategic management of
the workforce. It was initially dominated by transactional work, such as payroll and
benefits administration, but due to globalization, company consolidation,
technological advances, and further research, HR as of 2015 focuses on strategic
initiatives like mergers and acquisitions, talent management, succession planning,
industrial and labor relations, and diversity and inclusion. In the current global work
environment, most companies focus on lowering employee turnover and on
retaining the talent and knowledge held by their workforce. New hiring not only
entails a high cost but also increases the risk of a new employee not being able to
adequately replace the position of the previous employee. HR departments strive to
offer benefits that will appeal to workers, thus reducing the risk of losing employee
commitment and psychological ownership. There are half a million HR practitioners
in the United States and millions more worldwide. The Chief HR Officer or HR
Director is the highest ranking HR executive in most companies. He or she typically
reports directly to the chief executive officer and works with the Board of Directors
on CEO succession. Within companies, HR positions generally fall into one of two
categories: generalist and specialist. Generalists support employees directly with
their questions, grievances, and work on a range of projects within the organization.
They "may handle all aspects of human resources work, and thus require an
extensive range of knowledge. The responsibilities of human resources generalists
can vary widely, depending on their employer's needs." Specialists, conversely, work
in a specific HR function. Some practitioners will spend an entire career as either a
generalist or a specialist while others will obtain experiences from each and choose a
path later. The position of HR manager has been chosen as one of the best jobs in
the US, with a #4 ranking by CNN Money in 2006 and a #20 ranking by the same
organization in 2009, due to its pay, personal satisfaction, job security, future
growth, and benefit to society. Human resource consulting is a related career path
where individuals may work as advisers to companies and complete tasks
outsourced from companies. In 2007, there were 950 HR consultancies globally,
constituting a US$18.4 billion market. The top five revenue generating firms were
Mercer, Ernst & Young, Deloitte, Watson Wyatt (now part of Towers Watson), Aon
(now merged with Hewitt), and PwC consulting. For 2010, HR consulting was ranked
the #43 best job in America by CNN Money. Some individuals with PhDs in HR and
related fields, such as industrial and organizational psychology and management, are
professors who teach HR principles at colleges and universities. They are most often
found in Colleges of Business in departments of HR or Management. Many
professors conduct research on topics that fall within the HR domain, such as
financial compensation, recruitment, and training.
1.2 Effects Of Human Resources Management On Organisational Perormance

Human Resources Management in any organisation is created with the sole purpose
of establishing a strong tie between the organisation and the employee. An
organisation uses the human resources management to help their employees in
developing their skills. These skills are then further used to contribute to the
organisational development. Here are some points that tells us some impacts.

● By offering the employees benefits for staying with the firm, positive behaviour is
encouraged. Human resources management analyse and reward those employees
who have been strongly supporting the company in its policies. However, the flip
side is also true as those employees who are not so focused receive fewer rewards
for that.

● These days flexibility in the workplace is of utmost importance. With a different

kind of employees joining the workforce rising it is crucial that the firm offers them
packages and benefits which are suited as per their interests. In such flexible
workplaces, employees are able to adapt their working style according to their
lifestyle needs.

● It is the duty of a manager to motivate juniors in a positive manner. Doing that

increases the motivation level of workers and thus also improves the kind of output
they provide. It is a known fact that employees of firms having strong HRM policies
in place tend to perform better. PROBLEMS OF HUMAN RESOURCES MANAGEMENT
Managing people in the present context is not an easy task as it is mired in many
problems. The competitive challenges include globalization, technology, managing
change, retaining human capital, responding to market forces and cost containment.
The competitive challenges are compounded by concerns for employees influenced
by diversity, age, gender issues, job security, educational levels, employee rights,
privacy issues, work attitudes and family problems.
1.3 The Idea Behind Human Resource Management

The introduction of the concept of Human Resources Management came to light in

the 1980`s. This trend was ushered in after an intense term in which the application
of scientific methods was used to solving the problem of obtaining maximum
efficiency in industrial work. Human Resource Management was used to break the
trend or belief that man is a man and not a robot. It is important to know that for
several decades organizations have increased interest in organizational effectiveness
irrespective of the field of business. This interest makes every firm active when
dealing with Human Resource Management in having maximum organizational
effectiveness. Human resource management has sought to become an essential
element of organizational effectiveness through the adoption of various new
disciplines.

Thus, we can ask, what is human resources management? What do they take into
consideration and how are they integrated? What is the importance of human
resource management? What are the main theories and how do they work? What
are the links between the human resources management and organizational
effectiveness? In order to answer to all these questions, a precise definition of
human resources management will be provided as well as a look into different
approaches built by theorists, and in conclusion, the limits between the models and
their application will be ironed out depending on the specific environment. Human
resources management is essential to all and it must be developed with a relevant
purpose to achieve organizational effectiveness. Understanding that human capital is
the main source of competitive advantage is the work of Hu-man resources
management.

Taking into consideration that a human being is not a robot, gives it gratification,
training, education, encouragement, motivation, reward and recommendation;
human resources aim to optimize human capital, get organization efficiency and take
care of relationship between the management of the company and this type of
capital, this relationship is having several possible meanings in most cases. In order
to get organizational effectiveness, companies have to develop human resource
systems to achieving both horizontal and vertical integrations. Horizontal integration
is one of the focal points to consider when a company wants effectiveness and to
reach the planned company`s goals. However, horizontal integration is considered
not to be the most important factor leading to achieving the company`s goals.
Vertical integration focuses more on the relationship between human resources, the
strategy and tactics to reach the organizational goals

Human resource management is the area of administrative focus dealing with an

organization`s employees. In most cases, human resource management is the term
used to describe formal systems devised for the management of people within an
organization. Essentially, the purpose of human resource management is to
maximize the productivity of an organization by optimizing the effectiveness of its
employees. As Edward L. Gubman observed in the Journal of Business Strategy, ´´The
basic mission of human resources will always be to acquire, develop, and retain
talent; align the workforce with the business; and be an excellent contributor to the
business. Those three challenges will never change. ´´This proclamation is unlikely to
change in any fundamental way, despite the ever-increasing pace of change in the
business world.

Edward E. Lawler III (2014) emphasizes that what makes organizations effectiveness
is how theyorganize staff and manage their human capital. Modern organizations are
dependent on complex systems and the knowledge of their employees. He also
mentioned that if human resource can identify key talent areas and man-aging
critical talent, it has opened the door to being a major strategic player, with respect
to organizational effectiveness.

Organizational effectiveness is hard to measure as there is no unified definition of

the organizational effectiveness. Each company has to design its own measures and
has to define the desired target values. The organizational effectiveness is essential
for the triumph of the recent organization.

Human resource management decisions are likely to have an important and unique
influence on organizational performance. In spite of all the differences in scholars’
opinion, there are few points that are included in all the various definitions and they
include number of employees, the size of the company, also the sector of the
organization in question. The importance of managing human resource capital in
achieving organization effectiveness has enticed most organizations to invest human
resource management and this will have a great positive effect on the company and
entire economy.
 CHAPTER II
LITERATURE REVIEW

Analysis of literature forms a vital as well as a crucial part of researches. No research

study is taken to be as thorough if a broad literature review is not made by the
researcher in his or her research study. The elementary motive of undertaking this
task is to find the research breach between studies done so far and also to decide
exactly the topic of research and to get a perception into the research theme
selected for study. In this sense this implementation becomes a kind of exploratory
research. The role of an HR of a company is to maximize the employee productivity
and protecting the company from any issues that may arise within the workforce.
But during the work HR face a lot of problems and we are here to analyse and
evaluate those problems and will find the impact of same on the organisation.

By The Times of India (22nd February 2022)

Machine learning and Artificial Intelligence: A futuristic approach to employee

engagement - Employee engagement trends transform as the generations change in
the workforce. Consequently, the tools or solutions to engage and retain employees
and measure and enhance their engagement levels are also changing. As per some of
the recent research reports, a set of four generations constitute the workforce in
today’s highly competitive and digitized times:

● The old-school Baby Boomers and Gen X believe in hard work and loyalty towards
their employers. They consider face-to-face conversations as the most efficient way
of communication. They focus on their job roles and remain committed to their
companies if given the right growth opportunities.

● Gen Y or Millennials, the current workforce, harness the technological

developments coming their way. They prioritize a sense of belonging and
compassion in their organization. They want to feel recognized and valued and
strengthen relations with their employers and co-workers. Moreover, they show
interest in exploring new digital engagement tools alongside their senior leaders.

● As per a study by Dell Technologies, Gen Z is excited about technology’s role in

future organizational systems and processes. They aspire to work with cutting-edge
technology. They look forward to how digital technology could prospectively
revolutionize how employees work and how employers engage with them. When
equipped with advanced technological tools, they tend to show high engagement
and involvement in their jobs.
By The Business Times(14th March 2022)

Performance management must change for hybrid work to work - AS WE transit to

an endemic phase with Covid-19 and its variants, companies are now moving from a
heightened fight-or-flight state to tackling some of the fundamental shifts that the
pandemic has brought to the global workforce.

Hybrid work is here to stay. A study by The Adecco Group among 8,000 office-based
workers found that 74 per cent would like a mix of office-based and remote work in
the future, and 79 per cent of C-suite leaders believe that business will benefit from
allowing increased flexibility. These attitudes are shaping the way that companies
will structure their workplaces, performance management and employee experience
management.In our discussions with chief human resource officers and chief
executives from the private and public sectors, an interesting thread emerged - that
performance management is what will make hybrid work work for us. Here are four
takeaways.

Remote working has shed light on how workplace performance management and
evaluation had previously been premised on visibility and presence when we were
all working from the office.What has resulted is an unconscious bias and fear among
employees, concerned that they may be disadvantaged in their performance reviews
or short-changed on promotion and progression opportunities compared to more
visible co-workers physically in the office and these fears are not unfounded because
the "see and be seen" model is also a trap that senior management admit they fall
into.

A rewiring in leaders must occur - to not grade performance based on a team or

individual's visibility (we'll get into what performance measurement should look like
for hybrid work shortly) and it's crucial they move out of this so the rest of the
organisation doesn't bear the brunt of this onedimensional mindset

By The FE News(18th April 2022)

How Workflow helps your Organization Connect Tools and Teams to Drive
Productivity – A competitive workflow contains effective features and work tools
that help organizations accomplish their business process. Workflow tools are simple
information systems that allow businesses to build and optimize their processes. The
tools help users build an efficient workflow management system compatible with
current and future needs. The primary aim of workflow tools is to ease business
operations, save time and increase productivity.

Executive teams, departments, or stakeholders need the tools to hasten the business
process, eliminate errors and increase revenue. Workflow tools allow businesses to
save time by removing redundant tasks that utilize more time and resources.
Employees can create time for other tasks and help the business achieve more.
2.2 Problems/Challenges Faced By Human Resource Management

In spite of the outrageous contribution of human resource management towards

organizational effectiveness in working life, such as developing good relations,
conflict management, building of culture and values in the organization there have
been several challenges organizations are facing regarding the management of the
human resource capital in achieving organization effectiveness. There are various
constrains that hinder the success of managing human resource capital from the
organizational setting in Finland. These problem includes building teams in an
organization, building an organizational culture, people engagement and
development, human resources effectiveness measurement, organizational
effectiveness, compensation, staffing: recruitment and availability of skilled local
labor, succession planning, learning and development. There are challenges faced by
HRM. One of our major challenges is giving our employees the right incentives. Also,
there are some external factors that exist in the outside of the organization that
hinder the performance of the company. To mention other factors that HRM faces
are industrial and employee relations, work diversity, retention and succession plan,
recruitment process and availability of experienced workers and technology. The
managing director, mentioned that it essential in a work place to have good
relationships between the employees and to make sure that they are assured that
there is a future for them in the company. He also noted that according to law in
industry, diversity in the organization must be well maintained and there must be a
logical arrangement to put this in place. It is essential to know that challenges of
human resource management are numerous based on my understanding,
experience and expertise. We have faced numerous challenges and to mention a
few, the challenges are often driven by competitive factors that exist in an industry
that require a response of positive practices to remain competitive.

When considering recruiting, the recruitment of workers for the job is always
painstaking while retaining them in this ever-changing world of today is a major
challenge. Employment can pose another problem which makes recruiting top
talents a huge task. When there is job advertisement many people submit their
application but sometimes the best credentials are not going to be the best recruit.
For example, one hundred applicants applying for ten positions, selecting the best
ten from the hundred will definitely be a huge task to the HRM department because
more resources and time would be consumed in the process of verifying the
credentials.

Furthermore, after the company has screened and the best candidates have been
chosen, retaining them for longer period on the job is also a challenge faced by HRM.
Money, time and other resources will be spent on the new employee for training and
development. Hence, losing them to other companies will have an adverse effect on
the organization. Developing the workforce is a major challenge for human resource
management because the ways to do when develop the employees are constantly
changing and many people are afraid of the change. Nevertheless, the change is a
constant thing that happens to people, so adopting new skills and ideas can be
challenging for some employee, this will then have an effect on the HRM. Since the
well being and happiness of the employees will make them perform and work
effectively, making sure all the employees are happy, satisfied and fit for their task
are challenges faced by HRM, this requires that all employee records must be well
kept. When it comes to cost, the value of money used to produce or deliver a service
is a challenge for HRM. Every manager want operate in a costless mode. However,
the managers are continually reducing costs of all types, including the daily work
hours of the employees, operations and money spent on equipment.

In some instance there are jobs but less people with skills require some companies
to pay more for those workers who can use certain skills to get the work done. The
globalization of business practices have focused on integration of global operations
and management rather than trade and investment, which has significantly affected
the management of human resources. Racial and ethnic minorities are another
challenge faced by HRM because the minorities of the population account for a
growing percentage of the overall labor force. Also, in some job types, men
constitute the majority while in some jobs the women are more. At the same time,
the population is aging, resulting in an older labor force. A significant number of the
experienced employees will be retiring soon and this is definitely a challenged to
HRM. Finally, technological advancement has changed the way human resources
management is managed and this chance is a major challenge to the company.

2.3 Functions Of Human Resource Management Towards Organizational

Effectiveness

It is ideal that every company that wants to manage its organization most valuable
asset (employees) must have an efficiently run human resource department which
can provide the company with an excellent framework and the competence to meet
business needs. What are there when it comes to recruiting, human resources
department is charge with the responsible to develop compelling solutions to meet
the workforce trend and demands. They broadcast the job, screen the applicants,
conduct interviews, to source candidates, and organize employment efforts with the
leader responsible for making the final decision of candidates. Apart from the
recruitment and selection process, the human resource department also looks into
compensation and benefits to find ways to attract to the most qualified applicants.
Workplace safety is an essential factor which should not be taken for granted. Under
the Occupational Safety and Health Act of 1970 in Finland, employees have the right
to safe working environment from their employers. It is essential for the human
resource department to support workplace 27

Safety training and likewise maintain federally mandated logs for workplace injury
and fatality reporting. It is also essential to take note of the benefits regarding the
organization employees compensation related issues. The human resource manager
is charge with the responsibility for maintaining the employer-employee relationship
through measuring work satisfaction, employee engagement and resolving
workplace issues. It also ensures that the workers have conducive and milieu
environment for working, free from discrimination and harassment. It is also
essential to develop management response to union organizing campaigns,
negotiation, agreement, collective bargaining and giving detailed explanation of
labor union contract matter. When it comes to compensation and benefits, it is ideal
to have an excellent compensation frame-work and evaluating competitive pay
processes.

Human resource department must develop good compensation plans, align

performance systems with compensation structure and negotiate group health care
benefits. It is also the responsibility of the human resource department to put an eye
on the medical reports of each employee in adherence to confidentiality. A critical
human resource function is to train and develop employees. This includes
orientation, training and professional development. Professional development
training is basically for workers that are eager for promotion or employees who is
curious to achieving individual goals such as finishing university degree or doctorate
degree. Human resource managers must have frequent check or assessments to
know when it is ideal for training. They check the workers performance records to
know where the worker strength lies and tuition support programs are within the
control of human resource department.

One essential element of business operations is complying with the labor and
employment laws. When the labor and employment laws is not followed in
accordance, it might result in workplace complaints based on inappropriate
employment practices, unsafe working environment and all dissatisfaction with the
working conditions that can affect productivity, likewise the profitability. Human
resource department is obliged to know the federal and state employment laws such
as Civic Rights Act, the Labor Standard and many other working rules and
regulations.

As it was discussed in the section above, it is essential for any organization that
wants to have effectiveness to possess good human resource management system.
The world is changing very fast, as 28 are the people. Based on research and
different studies, it is known that there are some common challenges faced by
human resource management when aiming to get organization effectiveness. These
include change management and leadership development. Change management can
be viewed as the ways or techniques used to embrace new processes or system
within an organization. Any companies have fast and new technology which can
create opportunities for firms to perform well, faster, and cost efficiency. It is
important to know that adapting to new technologies can create challenges within
the organization. Teaching every company employee how to use a new machine
might be time consuming. (It is also important that the employees have self studies)
sometimes, some employees find it difficult to adapt to change.

Leadership development reaches out more than what can be taken for granted
because it increases the strength or capacity of personnel to act in leadership post
within the firm or company. It is important to know that leadership positions are the
backbone of any final decision making or execution of an organization`s strategy
through growing the competencies of others, building cooperation and winning
mentality as well as strong team focus. Sometimes leadership positions intend to be
formal, with the corresponding part to take effective actions, decisions and
responsibility, likewise when it is formal, positions are taken with less effective
authority. An example of this can be a member of a team which affects the
engagement of the team, reason and direction; and personnel who will pay
adequate attention and negotiate by the means of influence. Many schools of
thought have come to the conclusion that leadership development is an essential
element of building business success. A case study is a research study made by the
Center for Creative Leadership, which shows that 65 percent of organizations with
effective leadership training or seminars arrived at excellent results as compared to 6
percent of firms without a program CCL (2016 : 10). When leadership development is
done right, it improves everything in the organization like teams, society and the
challenges of the customers.

2.4 Theories For Organizational Effectiveness

Over the past decades, research on organizational effectiveness and human resource
management has produced different theories of both organizational effectiveness
and human resource management from diverse perspectives. Human resource
management and organizational effectiveness researches concentrate on the
analyze of the process of achieving excellent performance in the business life and
this consists of the methods, motives and behavior theories of building more
effective organizations. The foundation and the background of these theories are
performance theories which explain the steady process of organizational
effectiveness. Among the theories being considered in this thesis are the Traditional
Human Resource Management Model (S. Gutierrez-Broncano et al), Soft and Hard
Models of Human Resource Management (Catherine TRUSS, 1999) The Matching
Model of Human Resource Management (Fombrun et al 1984), The Harvard Model
of Human Re- source Management (Beer et al, 1984), The Guest Model (David Guest,
1997), The Warwick Model (Hendry and Pettigrew of University of Warwick, early
1990s)

2.5 Traditional Human Resource Management Model

This model of human resource management is considered to be practiced by most

company managers because they rarely explicitly state the models used when
making decisions and managing their companies. It is ideal to say that managers are
limited creating decisions on the basis of the previously incorporated model
(Carolina Machado and J. Paulo Davim 2018, p. 159) the value assigned to the
personnel and the concept of the organization makes the model independent. This
said traditional model is made in a unique way to serve as guidelines to the
managers in order to protect their motives and values. It is important to note that
this model represents the image of the managers and not the image the company
wanted to portray in reality.
Chapter Iii Objective Of The Study

The main objective of this research study is to identity and understand the impact of
Human Resource management on Employee and organizational performance. For
the last ten years, practically every book, article, and speech on the future of human
resources management responsibility in organizations has stressed upon the need
for transformation. It is unanimous that human resource can and should add more
value to corporations. The primary responsibility for providing input, advice,
direction, and execution with respect to organizational effectiveness. It is therefore
essential to undertake this research in order to:

● To determine whether human resources management truly face challenges.

● To find out the roles of human resources management
● To find out what makes organizations effectiveness
● To find out the factors that hinder the success of human resource when exercising
it duties.
● To find the various challenges affecting the human resource capital
● To give suggestions on how to overcome the challenges
● To make recommendations based on the findings of the research
 CHAPTER IV
RESEARCH METHODOLOGY

4.1 Data Gathering

Data collection methods consist of two main categories, that is, the primary data and
the secondary data. Primary data is explained to be the information gathered or
observed directly from first-hand experience, which is used to solve problem under
research. However, the instrument used for collecting the primary data for this
research was through live interviews and questionnaires. secondary data collected
from textbooks, journals, articles, magazines, annual reports and miscellaneous
sources like the internet. In the process of this research, both primary and secondary
data used, it is derived directly from the interviewees. These interviewees were able
to provide perceptions on ´´how and why´´ by reflecting from the personal
experience, encounter, understanding and expertise. The interview was carried out
by me and semi-structured interviews were the main data collection procedure.
Semi-structured interview technique allows the respondents to answer the research
questions in depth and it also give them room to express their views on how they
wanted. An open-ended questionnaire was developed and the interviews lasted
about 20 to 40 minutes and the interviews provide good understanding into the
variable of the model adapted from the literature. The interviewees gave good
responses.

4.2 Importance of the study

The data collected for the study is analysed in a descriptive, more logical and
comprehensive manner. Methods used to analyse the data is Content analysis
method, Narrative analysis and Grounded theory. As the interviewer I wrote down
some vital points and arguments that were revealed from the interviewees in the
process of the interview. The data is compared and contrasted to some of the
literature and the earlier research studies that have taken place. However, it is
essential to note that the research analysis was analysed based on the response of
the interviewees and it is free from subjectivity because a logical pattern was
followed.

4.3 Sample Size

The sample size of the research consisted of 3 respondents, including the top HR
manager, line managers and the employees in the firm. The major reason for
considering these three interviewees was to have a balance of scale of data analysis
and the comparison to attain an excellent result.

4.4 Importance of the study

The significance of this study is to examine the challenges of human resources
management towards organizational effectiveness in Vaasa, Finland, to learn how
the challenges have impacted both the organization and its effectiveness. Basically
every day, human resources departments have lots of responsibility with an
organization but this study will explain the challenges and how the system can get
most out of every employee. Research had it that in today`s work environment, it is
essential to have sound and definite knowledge that an organization is as good as its
workers. Many researchers and scholars have said that an organization most
essential asset is its people. Every organization is a dependent on its employees,
therefore the need to make a study of this topic is essential and it will also serve as a
source of literature to industries and various companies involved in the daily
operations of making their organizations effective. Looking into this research, it is
important to know that human resources management is the centre that deals with
almost every aspect of a company`s labor force. This consists of employment,
training, motivation, benefits, performance, evaluation, communication,
engagement, administration, payment, retirement and dismissal or discharge of
every personnel. Furthermore, the study serves as a learning platform for
entrepreneurs, stakeholders, agencies, companies, individuals and students to
realize effectiveness at the work place. The finding will likewise provide some tactics
and strategy for improving the effectiveness in an organization through the help of
human resources management. The study will add to the body of knowledge which
various researchers have had on challenges of human resources management
towards organizational effectiveness in different ways.

4.5 Limitations Of The Study

The research came with the following limitations

● Access to literature: The existing literatures and journals could not really
emphasize organizational effectiveness but mainly concentrated on human
resources management
● Unwillingness of respondents to give in-depth information: Unwillingness of the
respondents to giving in depth answers about the company could not be
undermined because the topic is sensitive.
● Data collection was not a representation of the country as a whole: It is essential
to know that the sample size was based on one company and three employees, so
we cannot generalize the outcome because Finland is a country of population of
around 5.6 million people.
● Inadequate time granted for the interview by the respondents: The time being
granted for interview was limited and the interview could not be prolonged because
of the company meetings.
● Method: The method mainly used was an in-depth interview, as the study has an
exploratory nature but the respondent did not completely feel comfortable
describing the topic to a stranger.
● Challenges of human resources management is a broad topic based on people`s
perspective and the study will focus more on the most crucial element: It is
important to know that people have a lot to discuss regarding human resources
management and organizational effectiveness but the willingness to express their
views was limited because of the main focus of the thesis.

CHAPTER V
DATA ANALYSIS & INTERPRETATION

Q. Are there any challenges faced by human resources management?

⮚ Yes, there are numerous challenges faced by Human Resource Management. One
of our major challenges is giving our employees the right incentives. Also, there are
some external factors that exist in the outside of the organization that hinder the
performance of the company. To mention other factors that HRM faces are
industrial and employee relations, work diversity, retention and succession plan,
recruitment process and availability of experienced workers and technology.

Q.What are the roles of human resources management towards organizational

effectiveness?
⮚ Human resources management has a crucial role in maximizing the overall
performance of the organisation by training and motivating the employees through
various incentives and benefits. It also helps in designing the policies or the
organization that helps in maximizing profit.

Q. What are the factors that hinder the success of human resources management
when aiming to achieve organizational effectiveness?
⮚ Poor human resource management and inadequate availability of good talent, less
consideration towards working environment and training to the employees also
adaptation to innovation and various others changes like political and economic
factors that hinder the success of a company HRM in achieving company
effectiveness.

Q. What are the ways to overcome the challenges of human resources management
in maximizing the organizational performance.
⮚ Following are the ways to overcome the challenges: Introduction: It is essential to
introduce the new hire to every group so as to know where it best fits Change
management: It is good to prepare for change in the management, Healthy
competition: Having a healthy competition can boost the attitude to workers Open
communication: give employee freedom to speak up, give feedback, ideas and
grievances if any Involvement: involve the employees in decision making. Make
them feel part of the company Motivation: One major way to boost organizational
performance is through motivation.

Q. Do management and labour union work together in constructive and strategic

manner?
⮚ Not all companies always try to make sure that its employees are satisfied and
give them all the necessary benefits and holiday according to the law. Labour unions
are like cartels and their major aim is to benefits their members. But the labour
union must work in a constructive and strategic manner and this can have an
adverse effect on the success of the company in the long run.
 CHAPTER VI
RECOMMENDATIONS

Based on the findings in this research, it is recommended that:

● Trade union should safeguard the interests at its member as well as help the
management to maximize their productivity.

● The research has shown that a major problem between employees and
management is effective communication.

● It is recommended that HR manager with the help of line managers should carry
out recruiting activities so that people with the appropriate skills, attitudes and
knowledge are hired
 CHAPTER VII
CONCLUSION

Achieving organizational effective is possible when the management knows that the
employees are the representation of the company in front of the customers. When
the employees are satisfied, the company will reach it maximum level. The mood of
one employee in the group will have an adverse effect on the productivity of the
organization. Healthy competition in an organization is essential because it boost
the morale of the workers. The outcome of the research is considered to be
successful because the main objective (What makes organization effective) of the
thesis was achieved and the research question is to know the roles of human
resources management in regards to organizational effectiveness which was
answered.

The key to organizational performance based on this research is the human

resources because it is the representation of the company in every aspect of the day
to day running of business while the roles of human resources management in
regards to organizational effectiveness is making the organization a productive and
prospering workforce. Labour Union works for the interest of its members and they
do not have the same interests as the management. Human resource management
concentrates on matching the needs of the business with the needs and
development of the workers.

Every worker has a role to play in the success of a company, and it should be
valued. Based on the employee respondents, it is evident that they are motivated to
work and they respect the management when their values are respected. The
managing also emphasizes that the management make sure that the employees are
satisfied and the team members are happy with the group on daily basis.
 CHAPTER VIII
BIBLOGRAPHY

● An Introduction to Human Resource Management John Stredwick · 2013

● Human Resource Management: The Key Concepts books ● Chris Rowley, Keith
Jackson · 2011
● Human Resource Management: Issues, Challenges and Opportunities books
● Research Methods for Human Resource Management
● https://www.peoplematters.in/article/performance-management/performance-
managementwhy-keeping-score-is-so-important-andso-hard-28735
● https://hbr.org/2021/02/company-culture-is-everyones-responsibility
● https://hbr.org/2020/07/5-tips-for-communicating-with-employees-during-a-crisis
● https://www.emerald.com/insight/content/doi/10.1108/IJPPM-01-2016-0004/
full/html
● http://bwpeople.businessworld.in/article/Impact-Of-Human-Resource-
Management-OnOrganizational-Functions/27-03-2019- 168499/
● https://human-resources-health.biomedcentral.com/articles/10.1186/1478-4491-
12-35
● https://www.ufhrd.co.uk/wordpress/wp-content/uploads/2008/06/lall-204-
wp.pdf
● http://www.jcreview.com/fulltext/197-1591619163.pdf
● https://www.hrzone.com/community/blogs/jamessheehan/top-10-issues-for-hr-
teams-howto-fix-them
● https://www.efrontlearning.com/blog/2017/11/top-7-human-resource-
challengessolutions.htm
● https://www.businessstudynotes.com/hrm/human-resource-management-
challenges
● www.gisma.com/blog/the-importance-of-human-resource-management ●
www.wikipedia.com
● Personal reports
● Articles
● Newspapers
TABLE OF CONTENT S.NO TOPIC PAGE NO. EXECUTIVE SUMMARY 1 1.1 CHAPTER I
Introduction 2-3 1.2 1.3 Effects of human resource management The idea behind
human resource management 4 5 2.1 CHAPTER II Literatuer Review 6-7 2.2 2.3
Problems faced by human resource management Functions of human resource
management 8-9 10-11 2.4 2.5 Theories for organizational effectiveness Traditional
human resource management model 12 13 3.1 CHAPTER III Objective of the study 14
4.1 CHAPTER IV Research Methodology 15 4.2 4.3 Method of Analysis Sample Size 15
16 4.4 4.5 Importance of the study Limitations of the study 16 17 5.1 CHAPTER V
Data Analysis & Interpretation 18-19 6.1 CHAPTER VI Recommendation 20 7.1
CHAPTER VII Conclusion 21 8.1 CHAPTER VIII Bibliography 22