The major Challenges that a HR Manager faces in the current scenario are –
(1) Globalization – Due to globalization people from different countries, culture, values, lifestyle, work pattern etc. get together in an organization to solve management problems. Employees from different backgrounds are unfamiliar with Laws, practices, work ethics, management style etc. and find it difficult to cope up in a new organization. In the globalized market the HR manager has to create a competitive advantage for the organization by hiring and retaining the best talent and formulate strategies to exploit diverse workforce. Therefore the HR Manager has to keep a global perspective while hiring people and have to keep a helping, flexible and proactive attitude towards employees from different backgrounds.
(2) Changing demographics of Workforce – HR managers face a challenge in situations of dual career couples, Relocation of Employees and change in growing number of young employees.
They have to decide where to relocate an employee and for how much tenure. Issues like dependence of a family member, health problems, resistance from employee are faced by the HR manager at the time of relocation.
Another challenge faced by the HR team is to find an optimum balance between the young and old generation employees. While young employees are enthusiastic, the old employees have good experience it is difficult to choose between the two.
(3) Changing Employee Expectations – Due to increase in education level the employees have become more aware. While traditionally employees demanded for job security and monetary benefits, Now-a-days they expect a harmonious work environment, equal pay, recognition and status, cordial relationships and fair treatment. The HR team has to keep up with the changing expectations of the employees and keep them satisfied.
(4) Technological Changes & Advances – Due to rapid technological changes and advances in production, information, operation technology etc. computers and machinery have become an integral part of every organization and have bought automation in work. Automation is a boon as well as a challenge. Work performed by individuals can be now done by machines. A technological change in an organization also faces employee resistance. Therefore the HR manager has to design jobs in such a way that it complements the skills of the workers and provide monetary and non-monetary benefits to employees to handle any resistance.
(5) Managing Diversity – Diversity refers to differences and similarities in a particular group. As people from all across the globe work in an organization therefore diversity exists. Diversity in human resource may lead to different opinions, different management styles, conflicts, red-tapism etc. Therefore the HR manager has to manage diversity in human resource by interacting with employees, solving their problems and encouraging them to work together.
(6) Changes in Political & Legal Environment – The HR manager has to keep up with the changing rules and regulations of the government. They have to ensure compliance with government policies and procedures regarding Labour laws, Trade unions, pay-scale, quotas etc.
Issues faced by a HR Manager:
- Lack of support from top management
- High expectations of employees
- Eliminating low-level jobs
- Retire old employees with limited skills
- Justifying pay-scales and benefits
- Outsource work
- Lay-offs
- Inadequate HR information system
- Managing human and industrial relations