The Challenges of Human Resource Management on Organizational Performance

by K. V. Sridhar*, Dr. D. D. Aggarwal,

- Published in Journal of Advances and Scholarly Researches in Allied Education, E-ISSN: 2230-7540

Volume 11, Issue No. 21, Apr 2016, Pages 0 - 0 (0)

Published by: Ignited Minds Journals


ABSTRACT

Human Resource Management (HRM) is the phrase used to define structured processes developed within an organization for handling employees. A human resource manager's duties fell into three primary areas personnel, workplace pay and benefits, and work definition design. Essentially, HRM's goal is to optimize an organization's profitability by maximizing its employee effectiveness. Given the fast growing rate of transition in the corporate environment, this policy is unlikely to shift in any significant way. The fundamental goal of human resources must often be to attract, grow and maintain talent match the staff with the enterprise and be an outstanding asset to the company. Such three tasks will never alter. Human Resource Management may be a concern particularly for small companies, who usually have no HR department on which to focus. They may be restricted to one HR person or the CEO may still have the duty. Nonetheless, small business manager has to consider the threats that confront them in order to be able to tackle HR problems as their organization and workforce expands. The purpose of this paper is to research the challenges in HRM, suggest measures to overcome the challenges and highlight the emerging challenges in HRM.

KEYWORD

Human Resource Management, organizational performance, structured processes, employees, personnel, workplace pay, benefits, work definition design, optimization, profitability, transition, corporate environment, attract, grow, maintain talent, small companies, HR department, HR problems, measures, emerging challenges

INTRODUCTION

Human resources teams are experiencing major obstacles as their functions in the early 21st century are wider and more strategic. HR is more than just a simple feature concerning the recruiting, recruitment and selection of workers. It is a crucial factor in cultivating a workforce that aligns with a company's purpose and vision. Greater challenges come with greater significance. Many of the problems confronting HR executives are timeless, "It's about trying to bring much further into the company a global mentality and leadership, and building a far stronger relationship with their foreign versatility and regional talent management functions. Each year the role of Human Resource has shifted. Every year new market is developed such that the HR team needs to develop employee capabilities according to the present situation in order to cost efficiently that goods. Yet the key problems confronting human resources teams today include Recruitment, Motivation and Retention, Leadership Development and Business Culture and Management of Limited Assets and Budge and Skills Gap While human resources seek to promote a more competitive position, solving these concerns has become an constant and time-consuming task. Within this situation, the position of an HR director has taken on even greater significance because it is needed to establish environments in an company where workers from diverse contexts, cultures and nationalities will operate together with ease and prosperity. In other terms, we might claim the HRM undergoes a huge transition that can alter a career direction in as unpredictable ways as it does. Employees rely mostly on market acumen to delegate to outsource several managerial tasks, requiring other HR practitioners to show different talents and fight for fresh, often unknown positions.

HUMAN RESOURCE MANAGEMENT AND ORGANIZATIONAL PERFORMANCE

The essence of the HRM success connection is tracked by direct and indirect analysis of the interaction between individual HR practices. Nevertheless, the studies demonstrate that the different HR activities will contribute to the strategic edge and as a consequence improve the efficiency of the organization. In other terms, a series of HR practices will unintentionally and potentially boost an organization's efficiency when it is assumed that HR practices can drive an entity to greater success in either circumstance. HR methods apply to the educational classes and motivating services to can perform successful activities. An person, whoever small parts or, in another phrase, it is argued that the individual HR practices are limited for an organization's competitive advantages. Nevertheless, other experts decided just that in terms of evaluating HR policies, policies would contribute to improved results for both forms of companies. According to the study all consensus has been achieved and criticism in terms of HRM and results. Research has questioned in the second stream of study, the ambiguous association between HRM and efficiency, by claiming that both specific activities and package of activities do not clearly influence the output of the company. There are two influences on the HRM success partnership which are internal and external variables. Internal considerations include workplace retention, R&D, policy, employee involvement, staff morale and social environment. External influences may have major implications for the success of the business.

THE MAJOR CHALLENGES FACED BY HUMAN RESOURCES MANAGEMENT

HRM addressing difficulties. One of our major obstacles is to have the best opportunities for our workers. In turn, there are certain external influences on the outside of the enterprise that impede the company's success. To list other challenges addressed by HRM include industrial and workplace partnerships, job composition, continuity and succession strategies, recruiting methods and the availability of skilled staff and technologies. The managing director said it is important to have strong connections with the workers of a workforce and to ensure sure they are confident that the business will have a future for them. He further noted that diversity in the company must be properly managed in compliance with market legislation and there must be a reasonable mechanism for that to be set in effect. Knowing that the human resource management issues are various based on my knowledge, background and skills is important. We have encountered multiple challenges and, to name a few, the challenges are also motivated by strategic forces present in an market that demand a response from proactive activities in order to stay successful. Human resources teams are experiencing major obstacles as their functions in the early 21st century are wider and more strategic. HR is more than just a simple feature concerning the recruiting, recruitment and selection of workers. It is a crucial factor in cultivating a workforce that aligns with a company's purpose and vision. Added challenges come with greater significance.

MANAGEMENT

1. Recruitment, Retention and Motivation

It is perhaps the most daunting topic confronting HR today. According to a November 2012 survey by the Society for Human Resource Management, human resources experts expect that keeping the best staff would be the main HR problem in 2022. Predictions show that as the economy grows a number of workers will be searching for new employment. Throughout periods of economic recession, even in periods of sluggish development, workers are more open to exploring alternative career opportunities. Employers now continue to consider innovative forms of recruiting candidates via social networking, advertisements on work boards and even more conventional approaches including visiting career fairs and sending out advertising mailings to create attention. Finding out why employees are quitting and solving the issues is also a position for HR to play in improving workplace skills.

2. Bridging the Skills Gap

To cross the skills gap, begin with your own internal work requirements and insure that they provide an clear picture of the credentials needed for the role and the position's responsibilities. Unless the role in the work description is vague, you'll wind up with a bunch of applications for candidates that don't suit your needs. In the interview, whether it's in person or via online footage, look for applicants who have their skills unique.

3. Establishing Healthy And Cooperative Corporate Culture:

In modern years business behavior has been one of the defining obstacles. Rising consumer demands allows businesses more involved in increasing, extending and enduring within competitive business scenarios. This influences the corporate atmosphere explicitly or indirectly, because each tool becomes over-occupied with workloads that may impair the balanced work climate in the workplace, contributing to further conflicts or business confusion.

4. Elevating human capital investments:

Nearly two-fifths of human resource experts believe that gaining human resources and maximizing human capital assets would be the greatest obstacle for the coming decade. By evaluating the problems in detail, one aspect that is obvious is that keeping healthy staff and recruiting the right applicants is the most challenging task that can come up. It suggests that HR practitioners need to build talent acquisition expertise that will lead successfully to recruiting, maintaining and rewarding high quality workers.

The HRM survey and a related one commissioned by PricewaterhouseCoopers have described leadership growth as a core problem for HR. 52 % of respondents suggested that this aspect was a issue, a substantial improvement over 29%. The population is ageing increasingly, prompting several Human Resource managers to begin placing in motion systematic succession strategies and beginning to concentrate more on cultivating potential leaders. The creation of leaders has become a big goal as businesses expand and improve. Successful companies focusing on the advancement of managers would also see improvements. We will need a more appealing leadership position in their job choices, and could include preparation.

6. Managing with Limited Resources and Budget

It's no secret that the Human Resource department struggles from a shortage of funding, a shortage of expenditure, and is understaffed on several occasions. A productive team must have sufficient funding to be able to work. When that includes partnering with external suppliers to streamline HR operations so the team needs to be prepared to budget appropriately.

7. Culture

Evidence has shown that culture affects operational efficiency, whether consumer satisfaction, engagement, protection, stock price or profitability determines achievement. Human resources play an important part in the growth of an internal community; strong organizations with a better organizational culture are more competitive commercially than their peers. Good employers see smaller turnover of staff than their competitor and are willing to hire highly professional workers who suit their community and choose to. The end effect is they offer client support of the utmost standard and develop creative goods and services that add to their profitable performance overall. There is a close partnership between cultures and recruiting which comes into play in the recruitment, selection and retention of employees. Cultural alignment is somebody's making up. This is who they are and what they have taken to the table. This can't be reached usually. Despite its significance, much of the businesses pay very little attention to culture. Actively shaping and improving community by recruiting has been found to greatly increase workplace engagement and efficiency. At the end, this strongly affects productivity and development of the company. When the business structure is not in harmony with the leader, whether you have the resources to educate them, it would be impossible to alter them.

Employees:

Providing workers with benefits and pensions is not enough in today's country. The human resource officer will preserve sufficient workplace mental health. We will seek to grasp and inspire employees' emotions, expectations and feelings whenever and where appropriate.

9. Balance Between Management and Employees:

The head of human resources is responsible for meeting the needs of executives and hiring employees. Benefit, engagement, teamwork, allegiance and honesty are the factors that management wants, while fair pay and benefits, protection and security, safer working environments, job growth and participatory work are the factors that management workers anticipate.

10. Training, Development and Compensation:

This is important to conduct a coordinated implementation of training programs and organizational learning systems to sharpen and improve expertise, and to build employee awareness. Compensation tends to be compensated due to people's results in the form of wage, bonus, benefits, bonuses, and perquisites. A word or letter of gratitude should also be provided if any of them have done their work above standards in order to preserve their morale.

EXTERNAL FACTORS AFFECTING HUMAN RESOURCE DEPARTMENT

The big external influences that influence an organization’s HR capital. Factors similar to these are:

1. Economic Factors:

Economic factors comprise all of those external forces that influence the HR process, manufacturers, consumers, competition and globalization are highly important economic factors. A-These variables are explained in brief as follows: (i) Suppliers: As long as the human resources department is concerned, the suppliers are the ones that supply the organization with human capital, the suppliers are the universities, schools, teaching institutes, consulting companies etc. The efficiency of workers' resources depends on the vendors. (ii) Customers: Institution clients also affect the activities of Human Resource. Nowadays, the quality of the products and please the consumer according to his needs. This is any employee’s duty to adhere to the highest expectations for their results. Sales are influenced by the commodity standard which is directly connected to the employees' expertise and qualifications. (iii) Competitors: Competition in a specific sector has a very leading part in roles and events related to human capital. As several businesses render work proposals to one employee, the company can benefit with more favorable terms and conditions, because the number of rivals often raises the value of hiring process and pay practices. If workers with specific qualifications are impossible to procure due to rivalry, the company may have to educate its own staff by careful preparation, training and growth programs. (iv) Globalization: Human resource managers need to perform demanding positions to build economic competitiveness with their interest because of globalization. Global businesses will constantly reorganize their work and reorganize their resources around their vital areas of expertise. The market climate of fact today has been rapidly changing. Changes of all sorts were reaching the companies from all directions. Successful administrators are those who easily anticipate and adapt to these shifts rather than getting carried away or caught unaware by passivity. When businesses employ employees who are reluctant to respond to shifts, instead they recruit the wrong persons. Agility is nowadays the name of the day, because the businesses are to thrive. Human resource administrators play a leading position in establishing a conducive working environment for rapid adoption and execution of improvements. We will foresee major and critical developments in advance, and promptly take appropriate action. Over the long term, how well a organization manages its human capital will significantly affect its ability to succeed or thrive in an increasingly competitive world.

HOW TO OVERCOME THE HR CHALLENGES…?

• Effective HR planning: In order to address the above-mentioned difficulties, an HR professional must prepare carefully before heading through recruiting or hiring phase as to how many positions there are, what kind of work is there and from where he needs to hire and what the training of a applicant needs to • Facilitation: HR administrators must take note of facilitation to be offered to existing or new workers. He will see to that this would be the motivator for workers to be motivated to do their utmost, so he will take good note of woman workers and the most professional and qualified staff to prevent employee attrition. • Ethical behaviour: Ethical actions would be practiced by an HR director to establish a cordial partnership with workers, to prevent disputes and to properly handle different workforces. • Coordination: HR executives have to operate in a number of workforces to inspire their employees to act. So he will cultivate a managing mentality both inside himself and in the work environment. • Support and consideration: As a human being he wants compassion and sympathy from others in his place of employment or somewhere else. Therefore, when an HR professional deals with individuals, he will feel compassion and understand the issue of others. • Employment understanding: An HR director would have full awareness of the job it is, he would recognize the attitude of the staff. A boss not only wants to have long experience of varied workers but he also needs to learn about evolving patterns in the labor market as well as shifting laws and role control. He wants to learn what the minimum and median pay and daily working hours are. • Professional Credentials: Another would have good academic qualifications and sufficient skills and expertise to be HR director • Fairness: A HR manger should not have to be very rough and demanding when working with the staff. • Communication: HR administrators or departmental supervisors and staff must interact appropriately, which must be transparent which understandable. Business leaders can work on explaining the advantages of the transition to all, so that workers can comfortably and efficiently adapt to changes. • Company will provide its workers with incentives to use their talents and abilities every day. It will inspire them to accomplish

their skills. Emerging HR issues in the future The HR preparation is one of the key tasks for HR executives. In regards to 21st century HR services, the role of the company has shifted from "behind the scenes" to being a key differentiator in industry. Particularly after globalization the HR roles took on a new dimension in the 21st century. Manpower management is an exasperating task, and professional skills are needed. Here are some of the problems HR Director encounters and are known (i) I The search and training (ii) The creation and growth of employment (iii) Promoting a philosophy of organization and heterogeneous workers (iv) The handling and settlement of disputes (v) The principles and standards of industry (vi) Multi-Generational Workforce Development (vii) Motivational and Retention Techniques (viii) Working flexible hours (ix) Working-life harmony hitting (x) 5 R's for resources (xi) Employment affairs

HRM STRATEGIES FOR REDUCING EMPLOYEE TURNOVER

Reducing Turnover

A summary of the main causes people leave jobs is as follows: • Organizational downsizing or consolidation (54 %) • Current or evolving issues (30 %) • Poor or ineffective performance (25 %) • He has a bad management partnership (22 %) • Good harmony of job and life (21 %) • Unrecognized gifts (21 %) • Improved pay and incentives (18%) principles (17%) • Individual qualities and skills are not an interpersonal match (16 %) • Company budgetary uncertainty (13 %) • A moved company (12 %)

CHALLENGES FOR EMPLOYEES

Increased competition for qualified workers

When labor market dynamics change and markets grow, more employers rely from the same pool of qualified workers. Employees with skill sets that are in short supply consider that they will have their pick of employers, so HR administrators need to be willing to comply with incentives outside compensation, such as flexible working hours, employee-oriented working environments so long-term employment protection. The degree to which an company is reputed to be a "nice place to work" will influence the effectiveness of recruiting and retention activities, as prospective workers today also rank employers on factors such as CSR, property rights policy and environmental concerns.

Changing demographics in the labor pool

With the ageing of the age of baby-boomers, elderly people are projected to make up a far higher percentage of both the workforce and the labor force than in the past. The ageing of the population at large has a substantial effect on the labor pool and its development. Populations mature as a result of rising their life span and/or declining birth levels. The ratio of people aged 65 and older to those aged 20 to 64 could increase between now and the middle of the century. While the workforce's racial and gender makeup is shifting.

Increased globalization of economies

When countries enter into progressively free trade arrangements such as the Trans Pacific Partnership (TPP), it becomes safer for businesses to go offshore and/or outsource core roles within the company. Once operations go overseas, a company's entire business may be moved to another region, effectively removing employment in the US. Hewlett Packard, for example, lay off five hundred workers employed in customer support and technological assistance in Conway, Arkansas, as it relocated the company to India. Most schools already outsource their retail facilities to corporations including Barnes & Noble, removing the jobs involved with overseeing and operating the pharmacy at the institution. In these situations, it is also the duty of the HR Director to lay

Workplace violence

Although more and more information is accessible regarding the origins of occupational abuse and methods of addressing it, there is still no rational explanation for its nature, so violent events arise for anything we say or do. No employer is resistant to occupational abuse and no employer can avoid it entirely. Today's HR administrators are charged with educating workers of policy and services on aggression in the workforce, reviewing any incidents of abuse, intimidation and related destructive behavior, and supporting employees with symptoms of stress or possible violence to receive support or aid by employee wellness systems.

Employee turnover

In a sense of human resources, turnover is the pace workers exit an company at. Easy forms to explain it are "how long workers choose to live" or "traffic volume thru the revolving door." Worker turnover may be advantageous if a low performing employee chooses to quit an company or becomes negative because the high turnover rate raises the costs of hiring and educating new employees or whether successful employees regularly want to exit the company. Increased unemployment will be detrimental to the efficiency of a organization because professional employees are gradually retiring and a large number of inexperienced staff remain in the workplace pool. HR administrators ought to be on the hunt continuously for opportunities to minimize workplace turnover. As you should recall, it costs an company on average that it lacks an employee.

Data-driven HR practices

The rising value of "digital data" poses a challenge for human resource managers — and is placing them under strain. Business executives are constantly requesting that HR practitioners, like their counterparts in other strategic fields, utilize indicators and in-depth analyzes to help make sound choices and show crucial spending return on investment. Which are only a handful of the new issues and developments that the HR executives of today have to contend with while simultaneously attracting, employing and retaining the current employees of the organizations? When the environment is even more dynamic, so will the functions and duties of the human resources experts of today.

HRM ISSUES AND CHALLENGES FOR BANKING SECTOR

HRM is a critical source of growth-oriented and diverse companies that aspire to be effective in a constantly evolving business climate. HRM’s fundamental as a replacement for human capital, it can only be taken as an help to human activities and not as a replacement. HRM’s present role in banks calls for effective human resource techniques, procedures, and processes to meet corporate goals. Therefore, putting the right employee on the right job and indeed at the right time is necessary and then assessing his / her success against the organization's defined objectives. The existing condition needs the people serving in the banking organizations to operate with complete dedication, commitment and discipline. It is also necessary for human resource practitioners to consider the numerous developments taking place within the enterprise and to adjust the operations of human resources appropriately. The following wider concerns will be addressed when developing human resource strategies: • Workplace degree and expertise optimization • Developing the correct knowledge and values at work • Manage employee success against the Bank’s goals. Those are subjects of critical significance. Implementation of VRS in the post-reform era rendered the banks internationally successful by adopting the new technologies. Highly qualified workers are being retrenched into radical programs regardless of this system. This excess labor with inadequate expertise negatively impacts bank efficiency and, ultimately, decreases productivity resulting in banks' weak image on the market. The decrease in the amount of workers owing to the VRS became regarded as workforce downsizing. It was attributed to automation, which culminated in the usage of more and more technologies, thus growing the additional, i.e. hidden labor, which often led to an rise in labor costs. There is no question that fear of work insecurity has increased due to VRS, and the degree of morale among the workers has decreased, however it 183 can be rendered different by having correct strategies to implement VRS in a pleasant way. The following big issues emerge from what has been mentioned above, and need to be discussed. • Is handling bank transition by HRM a risk, a possibility or both? • How effective is HRM in handling recent bank transformations? • To what degree has automation contributed to a decline in the amount of people employed? • To what degree is reduction impacting labor productivity and organizational performance and in what direction?

decrease in the number of workers and to what degree will the decline impact the labor costs? • How will HRM be successful in this global competitive era?

CHALLENGES FOR TELECOM INDUSTRY

Technology advancement began from the early 21st century. The Communications and Computers sector is growing dramatically. Hence the individual with strong technical skills is still in high demand with the rising technology. However, HR encounters challenges when hiring workers to locate the best professional worker. Therefore, it is important to educate old workers to stay up to date with all the latest technology. Not having technical expertise may provide workers with challenges. In turn, globalization and intensified rivalry in international and domestic companies are increasingly multinational and highly competitive. The obstacle for the HRD to train staff with the latest technological skills is therefore very difficult. Specific issues apply individualistically to the workers themselves. Organization is based on manpower to the max. Production estimation is related to higher performance, greater efficiency. But inspiration and coordination within a company plays a critical role in the success of an individual's job. Many of the problems are: democracy, fairness, corporate accountability and talent loss Since a certain Mr. Bell dreamed about bringing together a two-way contact system in the late 19th Century, the telecom industry has come a long way. The exponential development of telecoms, combined with extreme industry rivalry to produce the newest and best technologies at the shortest time-to - market possible, has generated a competitive battle for capital. So, what is the DNA of effective telecommunications companies? And, what is the relevance of supplying the preparation and services to workers in order to maintain career flexibility, productivity and happiness, while creating the highest benefit proposition for clients? 5G's arrival has accelerated the Outside Plant (OSP) space capital race, posing obstacles along the road that the sector has never before faced. Customers concentrate on speeding the introduction of their new next-generation networks to market while retaining business-as - usual activities at the same time. Although manufacturers are keen on introducing innovative technologies to support companies develop and build such digital networks, they cannot afford to recruit additional workers to their labor force. Therefore, vendors need to follow an creative and systematic strategy to maximize quality for customers. companies that face many obstacles in reaching sustainability in sales. Similarly, it is not an easy job to work with Human Resource Management to play a strategically successful and productive role in this field, provided that businesses aspire to market leadership.

CONCLUSION

Globalization has other consequences for the business from the point of view of the aforementioned theories, which they include the convergence of cultures. In today's age, the HRM needs to build the skills, mentality, and resources required to achieve a global competitive advantage. HR administrators will be on a constant look out for inspiration and ingenuity because the path to achievement is established. This is heavily reliant on HR to address the complexities of globalization that has brought organizations a whole different outlook. The company has become increasingly sophisticated with the usage of technologies and thus it is necessary to embrace these improvements. Not just the impact of globalization, but also certain other considerations such as technical developments, abilities of current workers and well-developed expertise and awareness among younger people, legislation and rules on workplace compensation and intensified competitiveness in the corporate world would be a very difficult aspect to remember when hiring and choosing the workplace. The question is not about hiring the best individual but rather how we can handle our employees' success. The goal will be to build a community of success where incentives for increased results are given and where handing out optimal performance is a way of life. HR practitioners' potential position should be shifting from a less managerial function to more of a strategic role. HR managers would be expected constantly to show their quality and life.

REFERENCES

1. Sushmita Chaudhary (2019) on human resource management in banking institutions 2. Masum, Abdul Kadar Muhammad, Azad, Md Abul Kalam, Beh, Loo-See (2015) on The role of human resource management practices in bank performance 3. Y. Chitra Rekha (2014) on HRD and Banks 4. Smiriti chand on Major Challenges Faced by Human Resource Manager 5. Shuana Zafar Nasir (2017) on Emerging Challenges of HRM in 21st Century: A Theoretical Analysis 7. Thimmanna G Bhat (2016) on a study on challenges in human resource management 8. Neil Kokemuller What Are the Biggest Challenges Facing HR Departments? 9. Abobk rklefa N Alhgig, Dr. Reena Mehta (2018) on Biggest Challenges Facing Hr Departments 10. Tanya Trivedi Bhatt (2015) on Biggest Challenges Facing HR Departments 11. M Almaaitah, Y Alsafadi, S Altahat (2020) on The effect of talent management on organizational performance improvement: The mediating role of organizational commitment 12. S Hassan (2016) on Impact of HRM practices on employee's performance 13. OS Olasoji (2019) on Challenges of human resource management in regards to organizational effectiveness 14. R Arora, S Gupta (2017) on Challenges in Human Resource Management: Paradigm Shift 15. GL Stewart, KG Brown (2019) on Human resource management 16. Shalini Shukla (2013) on Emerging issues and challenges for HRM in public sectors banks of India 17. Rob Hughart (2018) Human Resources Innovations in a Competitive Landscape 18. Vikram joshi (2014) on overview of telecom HRM practices 19. D Shin, AM Konrad (2017) on Causality between high-performance work systems and organizational performance 20. Y Yang, AM Konrad (2011) on Understanding diversity management practices: Implications of institutional theory and resource-based theory 21. Geetika Iyer (2015) on Human Resource Challenges in India Today 22. Narendra M Agrawal (2014) Human resource issues, challenges and strategies in the Indian software industry

Corresponding Author K. V. Sridhar*

Principal, Private High School, Mysore