© 2016 IJRAR January 2016, Volume 3, Issue 1 www.ijrar.

org (E-ISSN 2348-1269, P- ISSN 2349-5138)

A STUDY ON CHALLENGES IN HUMAN RESOURCE

MANAGEMENT

Abstract

Human Resource Management (HRM) is the term used to describe formal systems
devised for the management of people within an organization. The responsibilities of a
human resource manager fall into three major areas: staffing, employee compensation
and benefits, and defining/designing work. Essentially, the purpose of HRM is to
maximize the productivity of an organization by optimizing the effectiveness of its
employees. This mandate is unlikely to change in any fundamental way, despite the ever-
increasing pace of change in the business world. 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." Human
Resource Management can be a challenge for small business especially, which typically
don’t have an HR department to rely on. They may be limited to one HR person, or this
responsibility may still belong to the CEO. Regardless, small business owners need to
understand the challenges in order to face them so that they are prepared to tackle HR
issues as their company, and workforce, grows. This paper aims at studying the challenges
in HRM, to suggest measures to overcome the challenges and highlight the emerging
challenges in HRM.

Keywords: Human Resource Management,Challenges, Employees,Business.

Introduction

With better means of communication, breakthrough technologies and dismantling of economic

and social barriers, the world is becoming borderless and the countries are fast integrating into
a truly global economy. In this scenario the role of an HR manager has assumed much greater
significance as he is expected to create conditions in an organization where the employees from
diverse background, culture and nationality could work together with ease and flourish.
In other words, we can say that the HRM is undergoing a massive transformation that will
change a career path in as at uncertain ways. Employees are placing the greater emphasis on

IJRAR1944832 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 176
© 2016 IJRAR January 2016, Volume 3, Issue 1 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)

business acumen and are automating and outsourcing many administrative functions, which
will force many HR professionals to demonstrate new skills and compete for new, sometimes
unfamiliar roles.

Statement of the problem

Now a days HR duties and responsibility has become a challenge for HR manager to compete
with global competitors and to sustain in the diversified economy. As Human Resource is
required and a very essential thing for each and every business irrespective of their size and
nature of firm, optimum utilization of available employees is a very challenging task for every
HR manager in this competitive era. For this reason, we have chosen this topic and made an
attempt to analyze the emerging challenges in HRM and to obtain solutions in this regard.

Objectives

1. To study the challenges in HRM.

2. To provide suggestions to overcome challenges.
3. To highlight the future challenges in HRM.

Research methodology

For this study secondary data has been used. The data has been collected through internet,
websites etc.

Findings

Emerging HR challenges

1. Globalization in HRM

The term Globalization has invaded the mind of every successful businessman and the
concept of Global Village is common issue in modern business world. Globalization is a
process that is drawing people together from all nationsof the world into a single community
linked by the vast network of communication technologies. This aspect of globalization has
also affected in the business world of today.HR Manager today need not rely in small limited
market to find the right employees needed to meet global challenges, but today they can recruit
the employees from around the world.
How “Globalization” affects to HRM challenges....

• How to face competition from MNCs is worry for Indian firms.

IJRAR1944832 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 177
© 2016 IJRAR January 2016, Volume 3, Issue 1 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)

• As globalization spreads, more foreign firms are entering Indian market and challenges
before domestic firms are going to be much more severe in the years to come.
• As a result of Globalization businesses are forced to rapidly expand beyond their
immediate borders into global marketplace
• Large investment and modernization would require highly skilled and technically
trained people who would replace less trained, unskilled and redundant workforce

Greater and greater training needs are bound to be identified for updating the technological and
behavioral skills of well-trained executives.

2. Handling multicultural/Diverse Workforce

A multicultural workforce is one made up of men and women from a variety of different cultural
and racial backgrounds. The labor force any country is a reflection of the population from
which it is drawn, despite some distortions that may be caused by discrimination or cultural
bias in hiring. Dealing with people from different ‘age’, ‘gender’, ‘race’, ‘educational
background’, ‘location, income’, ‘parental status’, ‘religious beliefs’, ‘marital status’ and
‘ancestry’ and ‘work experience’ can be a challenging task for HR managers. Cultural
differences may often lead to difficulties with communications and a rise in the friction that
can develop as people with different expectations and habits interact. As a result, workforce
diversity is increasing. Managing these people with different religious, cultural, moral
background is challenging task for HR Manager. Thus it is important for a HR manager to
create an environment in which the positives of diversity are harnessed and the negatives are
minimized as much as possible.

3. Employee Selection

Employee selection is an important process for any organization, but particularly for small
business that can be challenged to compete with larger employees. Small business need capable
and competent employees to help them develop and deliver high quality products and services.
Not only these difficulties but there are some other factors which influence the employee
selection. Thus a HR manager need to consider all these factors while selecting the best suitable
employee for his organization. Some of the factors which affect the employee selection are as
follows:
 External factors:
• Recommendations

IJRAR1944832 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 178
© 2016 IJRAR January 2016, Volume 3, Issue 1 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)

Existing employees may recommend their relatives or friends to fill the vacancies, if
the person who recommended may be good or may not be.
• Political influence

Somecandidatesmayarrive to the interview with the influence of politicians who may be

familiar to the HR manager and have good relationship with company in those case we may
have to select those candidates.

• Personal bias
• Bribing
Some candidates may offer bribe to make section 
Internal factors:
• Cost of recruitment
Cost incurred for the process of recruitment may also effect the selection process.
• Job analysis
• Human resource planning
Before selection of the employees there may be already a plan for employee selection
and a HR manger may in need of following that plan itself he may notbe in the position
to take his own decisions beyond plans already made.

4. Compliance with Laws and Regulation

Keeping up with changing employment laws is a struggle for business owners. Many
choose to ignore employment laws, believing they don’t apply to their business. But
doing so could mean audits, lawsuits, and possible even the demise of a company. As
HR manger will be responsible in hiring employees it is his duty to care of laws and
regulations regarding employment, thus it will be very challenging to him to select an
employeewith taking into consideration of all laws and regulations. He must get
updated himself about the changing rules and regulations regarding employment.

5. Training and development

“Training is expensive. Without training it is more expensive.” –Nehru
Training is about knowing where you are in the present and after sometimes where you
will reach with your abilities. By training, people can learn new information, new
methodology and refresh their existing knowledge and skills due to this there is much
improvements and adds up the effectiveness at work. The motive behind giving the
training is to create an impact that lasts beyond the end time of the training itself and

IJRAR1944832 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 179
© 2016 IJRAR January 2016, Volume 3, Issue 1 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)

employees get updated with the new phenomenon. Training can be offered as skill
development for individuals and groups.
Organizational Development is a process that “strives to build the capacity to achieve
and sustain a new desire state that benefits the organization or community and the world
around them.”
The human resource department faces many challenges in a workforce’s training and
development, from ensuring the stability of the high performing individuals who drive
the company coaxing success from untapped potential employees and under achievers
alike.
Investing in the training and development of lower level employees is another common
HR problem. Some businesses have trouble finding the resources to do so. Employees
on the front lines are some hardest workers and may not have the time to take a training
course.
6. Balance with work life

Balancing work and life assumes relevance when both husband and wife are employed.
In India, working women now account for 15% of the total urban female population of
150million. Any organization that strives to be reckoned as ‘a great place to work’ needs
to pay special attention to minimize and facilitate resolution work life conflict of their
employees. The challenge however is in knowing and doing things that facilitate and
support work life balance without intruding into the personal lives of employees. The HR
department of such organization is often stretched for creative solutions that are practical
to implement, yet are effective in impact. Successful organizations in this space have taken
work-life-balance to even higher levels by not merely restricting themselves to addressing
domestic pressures on their employees but facilitating self -actualization of these
individuals.
Programs aiming at work-life balance include:

• Child care at or near the workplace

• Job sharing
• Sick leave policies
• Flexible work timing
• Care for sick children and employees

7. Retaining employee

IJRAR1944832 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 180
© 2016 IJRAR January 2016, Volume 3, Issue 1 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)

• Globalization has given freedom to working professionals to work anywhere in the

world
• Now that they have endless lucrative opportunities to work, hiring and retaining the best
industry talents is no joke
• Providing excellent work environment and offering more remuneration and perks than
your competitors can retain and motivate them

8. Conflict Managing

There is no organization without conflict situations. It is known that 80% of conflict situation
occur independently of human will. Its causes are people’s individual characteristics, as well
as structure of the organization, conditioned by the culture established in the organization.
Work-Life-conflict is a clear and present danger to organizations and denial of this fact would
be at the peril of accepting suboptimal employee performance. HR managers should know how
to handle employee-employer and employee-employee conflicts without hurting their feelings.

Although it is almost impossible to avoid conflicts among people still handing them tactfully
can help HR managers to resolve the issues. They should be able to listen to each party, decide
and communicate to them in a convincing manner in order to avoid future conflicts.

How to overcome the HR challenges…?

• Proper HR planning: To overcome the above challenges a HR manger must have to do

a proper planning before going for recruitment or selection process with regard to how
many vacancies are there that is of what kind of job and for that from where he has to
recruit and what must be the qualification of a candidate and how they have to conduct
interviews and what are all the hurdles, influencing factor may arise in selecting a
candidate.
• Facilitation: A HR manager must take care of facilitation to be given to the existing
employees or for new employees. He should see to that what will be the motivator for
employee to get stimulated to give his best and he must take care specially about women
employees and most competent and talented employees to avoid retaining of employees.
• Ethical Behavior : A HR manger should adopt ethical behavior to have cordial
relationship with employees and to avoid conflicts and handle diverse workforce with
care.

IJRAR1944832 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 181
© 2016 IJRAR January 2016, Volume 3, Issue 1 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)

• Coordination: An HR manger must work in diverse work force and he must stimulate
his subordinates to do action. Thus he must develop coordinating attitude in him as well
as in the working environment.
• Sympathy and Consideration: As human is a social being he needs care and sympathy
from others in his working place or anywhere. Thus as an HR manager works with
humans he must have sympathy and should consider someone’s problem.
• Knowledge of Labor: An HR manger should have complete knowledge of labor that is,
he must know the mindset of workers. A manager must have long experience with
diverse workforce not only this but also he must know about changing trend in labor
sector as well as changing rules and regulation of employment. He must know about
what is the minimum and maximum wage rate and average working hours.
• Academic Qualifications: To be HR manager one should have high academic
qualifications with proper knowledge and experience
• Fairness: A HR manger must not be very rough and hard while he deals with his
workers.
• Communication: There must be proper communication among HR manager or
departmental managers and employees and it must be clear and understandable.
Business owners should focus on communicating the benefits of the change for
everyone so that employees can adjust to changes very easily and quickly.
• Business should create opportunities for its employees to use their skills and strengths
every day. Accomplishing goals will motivate them and give them a chance to develop
their skills.

Emerging HR Challenges in future

One of the crucial activities for HR managers is the HR planning. Regarding the HR functions
of 21st century, the organization function has altered from “behind the scenes” to becoming
critical differentiator in business. The HR roles have taken a new dimension in the 21 st century
especially after globalization. Manpower management is an exasperating job and it requires
specialized skills.

Following are the some of the challenges being faced by HR Manager which is
identified
1. Recruitment and selection
2. Career development and growth
3. Promoting organization culture and heterogeneous workforce

IJRAR1944832 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 182
© 2016 IJRAR January 2016, Volume 3, Issue 1 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)

4. Conflict management and resolution

5. Business ethics and values
6. Managing Multi-Generational Workforce
7. Strategies for motivation and retention
8. Flexible work hours
9. Striking work life balance
10. Managing 5 R’s
11. Industrial relations

Conclusion

From the view point of above explanations, the globalization has many implications
for the firm that may entail the diversity of cultures. The HRM in today’s era has to mount the
expertise, mindset and capabilities that are needed to gain a competitive edge on global scale.
HR manager must be on continuous look out for creativity and innovation as it is known to be
the key to success. It depends highly on HR to face the challenges of globalization which has
given an entirely new view to organizations. The organization have grown savvier in using
technology hence it is important to adopt all changes. Not only globalization effects but also
some other factors like technological changes, competency of existing employees and well
developed skill and knowledge among younger generation, laws and regulations regarding
employee benefits and increasing competition in business environment will be a very
challenging thing which a HR manager must have to keep in mind while recruiting and
selection of the best employee.

References:

1 http://www.griffith.ie

2 Noe R.A. ‘ Employee Training and Development’, Mcgraw-Hill.

3 www.peopleandmanagement.com

4 NayantaraPadhi ‘Strategic Human Resource Management Theory and Practice, Atlantic

Publishers & Distributors, New Delhi.

5 http://careertrend.com
6 VSP Rao, Human Resource Management, Second Edition, Excel Books, New Delhi 7
https://www.talentlms.com

IJRAR1944832 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 183
© 2016 IJRAR January 2016, Volume 3, Issue 1 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)

8 Walton J.(1999), Strategic Human Resource Development, Essex: Financial Times/Prentice

Hall.

9 Wilson J(Editor) (1999)Human Resource Development, London : Kogan Page.

10 https://www.atlasstaffing.net

11 https://slideshare.net

12 https://www.inc.com/encyclopedia/human-resource-management.html

IJRAR1944832 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 184