Human Resource Management (HR) Challenges Study

Human Resource Management (HR) Challenges

Human Resource Management (HR) Challenges

The function of Human Resource Management in an organization is to regulate organization's rules and regulations and to form healthy relationship between management and worker within the organization. the others perform of human resource management is to enlisting of latest worker and economical use of resources to urge most performance by utilising minimum out there resources to attain desired target and goals of the organization. The first time the word human resources was used in the ninteens, and then in the Ninteen sixties. HRM is taken into account workers as business assets generally stated as human capital.
Like other business assets, efficient use of workers, reducing risk and maximizing output and return on investment (ROI). Human Resource Management Challenges (HR Challenges) are the organizational challenges  related to, competitive challenges facing by human resource management departments. the future trends and challenges for human resource HR management overcome by fostering a culture of continuous learning. HR faces numerous challenges in current multicultural diverse workforce. What are the new challenges for human resource management, a global survey done by World Federation of Personnel Management and compiled a list of HR challenges, and issues.

Objectives of Human Resource Management

Objectives of human resource management can be divided into four categories.

Societal Objectives

Societal objectives of human resource management is to take care of the ethical and social needs or challenges of the organization and its employees. Such as legal issues, equal opportunity and equal pay for equal work.

Organizational Objectives

In this objective Actions taken to make sure economical use of the resources to keep up the potency of the organization. providing right training, hiring the right amount of employees for a given task or maintaining high employee retention rates.

Functional Objectives

To recruit new worker and assign pointers wont to keep the unit of time functioning properly among the organization. This includes making sure that all of Human resources are being allocated to its full potential.

Personal Objectives

To distribute Resources to support the personal goals of each employee. offering the best opportunity for education or career development as well as maintaining employee satisfaction.

Human Resource Management Functions

Human resource management work in the following Different areas that are,
Recruitment new employee, onboarding and retention,
Management of talent and workforce,
Assignment of job and career development,
Compensation and benefits,
Labor law compliance,
Performance management,
Training and development,
Succession planning,
Employee engagement and recognition,
Team building,

Human Resource Management Challenges (HR Challenges)

Human resource management faces following important challenges.

Environmental Challenges

Environmental challenges are related to outside forces that are present in the external environment of an organization and can affect the organization's management performance. These external forces are almost out of control of the organization's management. These can be considered as a threat to management and should be actively controlled. The following challenges are considered as environmental challenges.
Rapid Change
Work Force Diversity
Job and Family Roles
Lack of Skills
Rapid changes
The world is chop-chop dynamic as a result of the modification is continuous for several centuries. So the management of organizations should adapt quickly to the changing needs of the environment, otherwise they become obsolete from the market. Human resources management of a company plays a basic role in responding to environmental modification. The Human Resource Department should adopt policies that can take advantage of new opportunities, for the environment and keep the organization up-to-date with the environment changes.

Work Force Diversity

Workforce diversification environment provides both the opportunity and the threat to the organization. The Human Resource Manager ought to adopt the policies that ought to be appropriate for numerous work flow of the workers.
Although diversity creates big problems on one side, in the long run, and that can affect the existence and performance of the organization.


The serious issue of today's organizations is the issue of globalization. The world is dynamic in world business and powerful competition has started between domestic and foreign corporations. Such competition affect the employees of the organization. The human resources department should play an important role in keeping the organization's culture as global and comprehensive.


This is an old challenge faced by the organization for many decades. There are some labor laws which are declared for the benefit of working employees by the government. Some of these laws square measure harmful within the interests of organizations, so it is one of the major challenges for Human resource management to implement all those labor laws. If any such law is violated, serious action can be taken against the organization by the concerned Government and Authority. resulting in serious penalties for the organization.


Technology is also growing very rapidly especially in the field of information technology, computer science and telecommunication technologies. New methods are emerging. which making old people and technology obsolete. Therefore, the skills required for the employees also vary with changing technology and it compels the worker to pursue skills in three to four times in his working life. Therefore, there's a burden on the Human Resources Department to perpetually update their employees' skills and experience.

Job & Family Roles

In recent years, both wife and husband work. This creates a serious burden on women because she gives time to their family too and maintain house and children. The working hours of the organizations are strict for the employees. In addition, selection and training processes are two difficult and time consuming, therefore most talented women hesitate to join any organization, which results in wastage of talent and ability.
Even the operating men suffer from these employment policies. they do not give much time to their families properly. Therefore, the challenge for the Human Resource Development to increases favorable work policies for working men and women in all organizations.

Lack of Skills

The development of the services sector is growing in no time, like changes in style and preferences of consumers, technical changes, legal changes etc. It affects the structure and management style of all business organizations. Latest skills and techniques. the graduates of technical colleges and universities are prepared according to the latest requirements. But in organization most old employees lack the standard required skills to follow their duties, and this is the big challenge for Human resource department to properly train these new and old employees to become a skilled and effective employee.

Organizational Challenges

The organizational challenges are the main factors for the Human Resource management to handle these challenges. Which are presented inside the organization. these challenges are the result of environmental challenges but these can be control by the management taking proactive corrective measures before these would convert into serious issues for the organization. The human resource management challenges following issues organizational restructuring & issues of downsizing, management of teams, development of suitable organizational culture, Controlling Costs, Improving Quality, Developing Distinctive Capabilities,
Restructuring organization.

Controlling Costs

An organization can take advantage of competitive position by reducing its cost and strengthening its cash flow. to achieve this purpose, the labor cost of the organization should be minimized through effective compensation and innovative reward strategies for good performance. In this way the friendly behavior of employees is rewarded so that the organization can get the ultimate advantage. Effective employees should be selected who live longer with the organization and appropriate training should also be provided to these employees. The Human Resource Department should also restore the work of employees with improvement in the health and safety issues of work environment. All these efforts will limit the cost of labor.

Improving Quality

Improvement in Quality can lead to an organization in this highly competitive era. Total quality management programs should be adopt, which improves all the processes within the organization. which will result in the improvement of the final product or service.

Developing Distinctive Capabilities

Another way to gain competitive advantage is to employ people with different competencies to develop additional capabilities in a specific area.


In the case of human resources department, most of the work is still done within the organization. now days in some organizations, the main functions of the HR department are now outsourced, like shared service centers etc. The size of the HR department in those organizations is shrinking because most of the work is done by outsourcing. But currently The Human Resource Department is currently concerned in mission directed and strategic activities.

Individual Challenges

Decisions about specific personal staff is individual challenges for Human resource department . Organizational environment and performance are also influenced by the fact that how employees are treated within organizations. The challenges related to the individual level are as follows.


Productivity is defined as the measure of value add by the employees to the final product or service. The high production per worker is mirrored as a rise in productivity.
Ability and motivation area unit 2 vital factors that have an effect on worker productivity. Along with hiring and giving proper training and career development, the employee's productivity can be improved. Motivation Works as associate accelerator for the workers for top quality of labor.


In modern times, many organizations give freedom to their employees to control over their work than their superiors. This personal management of staff is named authorization, which helps employees to work with enthusiasm, commitment and learn new skills because they make general decisions about their own work and therefore enjoy their work.

Brain Drain

One of the biggest challenges for Human resource management is the detachment of high level employees of the organization. who join with competitors for higher remuneration and better perks etc.
In this situation, the organization loses its intellectual property and important data.
This brain drain is becoming a serious issue in high-tech companies.

Ethics & Social Responsibility

Under this challenge, organizations work some social work for the benefit of society.
It is known as the social responsibility of the organization to indicate favorable behavior towards society. Ethics is the major principle for organization's social behavior. the HR department develops a code of conduct and principles of the Code of Ethics. which acts as a guide to the personal behavior of employees in the organizations. Employees also expect to favorable decisions and policies from management.

Job Insecurity

In the years of reorganization and downsizing develop a fear of job insecurity within the employees of organizations.
Now day several staff would like to induce a permanent job rather than promotional future job. All these things create fear among the employees about the insecurity of their jobs which will down their effective performance.

Matching People & Organizations

Recent Research shows that the human resources department contributes to the profitability of the organization. which creates policies for employee selection and retention, which are suitable for the organization's culture and its objectives. For example, research proves that those employees will be beneficial for high tech companies. who can work in low paid, risky, uncertain environments. this is an important challenge for the HR Department to keep such employees whose competencies and strengths match the organization's needs and circumstances.