Challenges faced by Human Resource Managers .

1. Dr. Moitreyee Paul

2.  Personal challenges
The decisions related to the specific individual employees are included in the individual challenges for the HRM. The
organizational issues are also affected by the fact that how employees are treated within the organizations
 Organizational challenges
The organizational challenges for HRM are related to the factors that are located inside the organization. The human
resource management challenges within the organization include competitive position and flexibility, organizational
restructuring and issues of downsizing, the exercise of self-managed teams, development of suitable organizational
culture etc.
 Environmental challenges
• The environmental challenges are related to the external forces that exist in the outside environment of an organization
and can influence the performance of the management of the organization.
Source: Daniels, R. (2022). Human Resource management Challenges

3.  Productivity – Productivity is the measure of the value that an employee can add to the final product/ service of the
organization. Ability and motivation are two key factors that enhance employee productivity. Ability can be improved through
proper hiring and consequent training and career development. Motivation can be augmented through the provision of better
quality of work life (QWL)
 Empowerment- In contemporary era, individual employees exert more control over their work than their superiors
in many organizations. This is called empowerment which helps the individual employees to work with more enthusiasm ,
devotion and therefore contribute more effectively.
 Brain Drain – High potential employees are leaving their current organizations and going abroad to MNC which are
offering them higher remuneration. This detachment is leading to brain drain since the high performing employees are going for
greener pastures and organizations are left with low performing existing employees who are not productive, lack technical
competencies. Therefore organizations have to incur loss on training of the existing employees.
 Ethics and Social Responsibility- Ethics serves as the basic principle for the social behavior of the
organizations. The organizations make an effort to benefit some portion of society. Within organizations, the HR departments
formulate professional ethical HR policies that serve as a guideline for determining the personal behavior of employees of the
organizations. The employees also expect management to show favorable decisions.
 Job Insecurity- Successful organizations lay off their employees in the period of cut-throat competition which has an
immense effect upon the stock market. All these things create fear among employees about the insecurity of their jobs which
would hinder their effective performance.
 Matching people and organizations – Prior research has proven that HR dept contributes to growth
of the organization when it hires and retains the employees who are highly tech-savvy and competitive and most suitable for the
work culture of the organization.

4. Few HR policies or business strategies can be framed to ensure competitive advantage in the global market. They are as folows:
 Controlling Costs-
 An organization can avail of the competitive position by lowering its cost and strengthening its cash flows.
 The labor cost of the organization is minimized through an effective compensation system that adopts innovative
reward strategies for good performances.
 Effective employees should be selected that keep with the organization for longer duration and proper training should
also be provided to these employees.
 The HR department should also restore the work of the employees along with the improvement in the health and
safety issue of the working environment.
 Improving Quality-
 Quality improvement can lead an organization towards a competitive advantage.
 The total quality management programs are employed to ultimately result in the improvement of the final product or
service.
 Developing Distinctive Capabilities-
 Employing high potential employees who have distinct knowledge capabilities to contribute to specific areas.
 Restructuring-
 Restructuring of the organization is done though positive alteration of performing methods. The HR department
performs majority of functions while the rest activities are outsourced to other client organizations.
 The sizes of the HR department in those organizations are shrinking because most of the functions are performed by
outsiders. The HR manager performs all the relevant functions and the department is now involved in mission-
oriented and strategic activities.

5.  Rapid Change
 The management of the organizations should be quickly adaptive to the changing work environment
and external environmental requirement in order to survive in the competitive market.
 The HR dept of an organization should adopt such HR policies that can avail the new opportunities
of the environment and keep the organization away from the newly emerging threats.
 Workforce Diversity
 The changing environment provides both the opportunities and threats to the human resource management
of the organization.
 The HR manager should adopt such policies that can make possible the diverse workforce of employees.
Diversity is necessary for survival of organizations in the long run.
 Globalization
 The world is converting into a global business and severe competition is started between domestic and
foreign companies.
 Such competition results in laying off the effective workforce of the organization.
 The HR department play a key role in maintaining the culture of the organization as global.

6.  Legislation
 There are certain labor laws that are declared by the government for the benefits of the working employees.
 Some of these laws are disadvantageous to the interests of the organizations so it poses a big challenge for HRM to
implement those within the organizations.
 If any such law is violated, serious actions are taken by the relevant government authority that may result in serious
penalties for the management of the organization.
 Technology
 Innovative methods of technology are emerging that are needed for survival in this modern era.
 Therefore creative skills must be acquired by employees.
 The challenge of HR department to constantly update the skills and expertise of its employees.
 Job and Family Roles
 Dual-career families are increasing where both husband and wife are working professionals. This creates pressure
upon women employees specially working mothers since they have to take care of their family and simultaneously
handle work at the professional front.
 The working hours of the organizations are also strict for the employees. The selection and training procedures are
two tough and time consuming so most talented women falter to join any organization which results in loss of talent
and potential.
 Favorable HR policies need to be framed for benefit of employees irrespective of gender.
 Lack of Skills
 The service sector development is expanding due to many reasons like change in the tastes and preferences of
customers, technological change, legal change, etc.

7.  Mental health and well-being
 Managing the hybrid work culture
 Lack of agility
 Employee communication
 Uncertainty
 Employee engagement

8.  Mental Health and Well-being
 Mental health and well-being have become a matter of concern in organizations worldwide.
 Paradigm sift to the hybrid working environment took a toll upon employees and individuals are facing health issues.
 Organizations need help managing people returning or showing apprehensions in coming to the office and require
expert management professionals to manage the psychological aspects of employees.
 It was much easier to monitor employees before lockdown, but communication and wellbeing are the issues faced in the
post COVID era.
 Managing New Work Culture
 Remote work, hybrid work, virtual meetings, online training, and on-boarding, etc., are emerging aspects of work
 culture in the post-COVID era. E.g. Permanent WFH :Novartis, Quora, Shopify, Swiggy etc. Hybrid Work Culture:
Ford, Google, Siemens, Salesforce,
 Remote work culture was integral part of few organizations (e.g. IT)
 The transformed work culture and unique aspects led to several unexplored challenges for HR professionals.
 Lack of Agility
 Lack of proper communication is a significant challenge for the HR Department due to delays in processing.
 Virtual communication, data collection, segregation, analysis, etc., slow down the process and pose a challenge for HR
professionals to troubleshoot problems faster and more effectively.
 Right HR tools, knowledge of rapid data analysis, alignment, and re-strategizing HR practices for speedier
communication, grievance redresal need utmost attention.

9.  Employee Communication
 Communication gap as one of the significant challenges in the post COVID era.
 Communication is vital to business during team meetings, client meetings, training, and other activities.
 Remote work, hybrid work and work from the office are becoming the new reality at our workplaces.
 HR professionals have to ensure efficient and glitch-free communication channels. E.g. Updating employees about
newly adopted HR measures and policies through proper channel (Skype), updating management about grievance of
employees, keeping stakeholders updated and informed about HR policies, circulars etc. , linking crucial external
information resources, organizing training sessions for skilling, up-skilling, and re-skilling employees and staff.
 Uncertainty
 During lockdowns and after COVID-19, the world has seen ‘Great Resignations’ and layoffs in millions, especially in
the IT sector and start-ups.
 People are apprehensive about job stability and security. Companies are offering lower salary, and people have fewer
choices to bargain for a better package that justify their experience and education.
 People are still determining what the future holds, and it creates a massive challenge for HR professionals to find the
right talents for the job roles.
 HR teams are still looking for solutions to the clouds of uncertainties and getting the right talent for their
organizations.
 Employee Engagement
 Organizing employee engagement activities with people involved in different work formats (remote, hybrid and
permanent from office) can be challenging.
 HR teams find new forms of work culture compromises internal communication and bringing every one of the same
becomes difficult.


10.  Focusing on core values- All decisions, strategies, policies, directed by core values of firm for all
time helps individual to understand well and implement smoothly.
 Retaining talents- Maintaining harmonious relations with employees, providing excellent work
environment and offering more remuneration and perks than your competitors can retain and motivate them.
 Building trust- Trust in the workplace is the key to any organization’s performance as well as the wellbeing
of its employees.
 Inspiring employees- Leaders must inspire employees with a sense of profound purpose and collective
values. An inspired is always full of energy and enthusiasm on the job. These employees give all to their employer, and are
constantly striving to be and do their best; to use their skills and talents to their full potential.
 Handling diverse workforce- Inclusion and diversity affect all stakeholders. Effective
communication, promptness, malleability and positive outlook of HR managers can bind the diverse workforce.
 Managing Change- Accepting and leveraging change helps organizations to maintain competitive
advantage.
 Managing conflict - HR managers should be able to handle employee-management and
employee-employee differences without throbbing their feelings. They should listen to all party, make a decision and
communicate to them in a convincing manner in order to avoid future conflicts.