Challenges Of Hrm

What are six competitive challenges facing human resources management departments? List and explain. 

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mwestwood | College Teacher | (Level 3) Distinguished Educator

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There are many challenges that Human Resource Management departments face. Here are six important ones:

  1. Technology - Managing technological advancements must be made in conjunction with employees since these advancements must be inserted into daily operations and are a means, rather than an end. Certainly, an understanding of the part that technology plays in supporting human capital management is a main element of the success of Human Resources. Training in technology improves the efficiency of workers, and thereby increases profits. It also keeps employees abreast of new developments which assist them in their particular positions.
  2. Recruitment and availability of skilled labor - Human Resources must have selection tests that match positions in the company; a method of search for important communication skills and co-operative skills are also essential to a company's success.
  3. Retention and Succession Planning of employees - Human Resources must establish a strong rapport among employees so that the company's goals can be reached through harmony and motivation in the work place. Fair treatment is essential and justified promotion by means of better employee assessment is also requisite for retention of good employees. Further, recognition of employees as assets is necessary for the successful operation of a company, as well as planning for candidates to be promoted and for succession of retiring employees is needed. 
  4. Health and Welfare  - Provisions must be made for the care of employees. This can be in the form of health benefits and sick days. Workshops and company picnics, outings, holiday celebrations, etc. often boost morale. 
  5. Workforce diversity - As required by law, diversity in the workplace must be maintained. Careful attention to equitable and harmonious arrangements in the workplace will ensure the success of such diversity.
  6. Industrial and Employee Relations - Human Resources can assist in maintaining a rapport within a company as well as between its own company and others with whom it interacts in trade or otherwise. This may involve restructuring, outsourcing, and retirement. New insights on how to improve productivity, reduce costs, intervention, etc. are also essential components of good relations.

Certainly, high involvement on the part of the Human Resources Departments of businesses has resulted in 

“significantly positively associated” “improvement on market value, rate of return on capital employed, revenue growth, revenue-per-employee rate, productivity, product/service quality, and even organizational survival."

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