Context and Challenges on HRM

Prepared by:Prakash Dhakal (IBMS)

The Policies and Practices involved in carrying out the “people” or human resource aspects of management position, including

Recruiting, Screening, Training, Rewarding, and Appraising.

Before Understanding – Context and Challenges on HRM,

Let Discuss about HRM … ?

How is HRM DEVELOPED ?

Rise

Evolution of HRM

Context of HRM

According to the development of HRM Concept, Context of HRM is also slightly moving towards the broader aspects…

How do you defineThe CONTEXT of HRM… ?

Context of HRM

Organizational Context Business Context

Legal ContextEconomic Context

Political ContextSocial ContextTechnological ContextStrategic Context

Globalization has affected all aspects of the model. A contested concept, globalization has been analysed as an

economic, political and social phenomenon.

The essence of the employment relationship begins with people interacting with work organizations through

labour markets (cost reduction by hiring qualified candidate)

Economic Context of HRM

It’s emphasized that the political context is the most complex and most difficult to analyze.

To cushion the effects of economic restructuring there have

been growing demands for changing the employment relationship including, regulating trade union organization and

activities, employment standards, and pay equity.

Political Context of HRM

Owing to demographic trends, firms are under increasing pressure to accommodate a more diverse workforce.

Demographic projections can help decision-making in areas of recruitment and selection, training, and rewards management.

Culture has a ‘collectivizing effect’. It influences whether people seek employment and how employees respond to HR practices.

Changing cultural values have an impact on the HRM function

Social Context of HRM

Microprocessor-based technology and innovations in communications, such as the Internet have affected product

and labour markets, and organizational design.

As this Guide was being prepared Apple launched its latest communication device, the iPhone. How will this device

influence communications within organizations?

Team working to be a central component of high-performance work practices.

Technological Context of HRM

Every Activities should have legality (contract, obeying organizational norms … )

Understanding and complying with HR law is important for three reasons.

It helps the company to do the right thing, to realize the limitations of the HR and legal departments, and it limits

potential liability.

Legal Context of HRM

So, Human Resource Management is a need for the today’s context.

Why HRM is Needed ?

To increase the work efficiency

To maintain the relationship between organizations and employees

To Stand on Competition and for OD

To exists in this competitive business world

If so than, what do Organization do

for their HRM ?

- Selection of right people for right task.- Efficient and effective planning.

- Well organizing and controlling the organizational plans and HR activities.

But, during the period and because of these activities HRD faces

lots of difficulties and obstacles …

Difficulty to identify the right candidates (talent, skills, attitude, behavior and personality …)

Difficulty to exists in competition

Difficulty to adopt change

Difficulty to make employees completely satisfied …

Than what are the challenges on HRM ??

Challenges on HRM

GLOBALIZATION

Changing workforce dynamics

Managing Diversity

Attitude towards UNIONS

HR Trends

Balancing Work Life

With the increase in competition, locally or globally, organizations must become more adaptable, resilient, agile, and customer-

focused to succeed.

And within this change in environment, the HR professional

has to evolve to become a strategic partner, an employee

sponsor or advocate, and a change mentor within the organization.

Challenges on HRM

GLOBALIZATION

Changing workforce dynamics

Managing Diversity

Attitude towards UNIONS

HR Trends

Balancing Work Life

The globalization influences the jobs that are available and requires that organizations

balance a complicated set of issues related to managing people in different geographies, cultures, legal environments, and business

conditions.

HR functions such as staffing, training, compensation, and the like have to be adjusted to take into account the differences in

global management.

Challenges on HRM

GLOBALIZATION

Changing workforce dynamics

Managing Diversity

Attitude towards UNIONS

HR Trends

Balancing Work Life

As we enter the 21st century, workforce diversity has become an essential business concern.

In the so-called information age, the greatest assets of most companies are now on two feet (or a set of wheels). Undeniably, there is a talent war raging.

And no company can afford to unnecessarily restrict its ability to attract and retain the very best employees available.

Challenges on HRM

GLOBALIZATION

Changing workforce dynamics

Managing Diversity

Attitude towards UNIONS

HR Trends

Balancing Work Life

Diversity is a potential performance barrier.

(if we think in positive, then : Diversity is a value added

activity)

There may be problem to retain Employees…

Because of the perception of the diverse employees values

and norms

Challenges on HRM

GLOBALIZATION

Changing workforce dynamics

Managing Diversity

Attitude towards UNIONS

HR Trends

Balancing Work Life

Union Influence

Role of UNIONS

Union Activities

Challenges on HRM

GLOBALIZATION

Changing workforce dynamics

Managing Diversity

Attitude towards UNIONS

HR Trends

Balancing Work Life

Moving Business Towards globalization (going global) - Increase in Competition - Diversified work-force

Technological Innovation and Change

Challenges on International Human Resource Management

Q : - what are the other HR trends that are the challenges of HRM ?

Challenges on HRM

GLOBALIZATION

Changing workforce dynamics

Managing Diversity

Attitude towards UNIONS

HR Trends

Balancing Work Life

Employees have the responsibility for their parents and for the organization (how

they balance?)

Managing work life and personal life of employees is challenging task for the HRD

Challenge on time management (flexibility)

Other ChallengesThe Management of Workplace DiversityChallenges of managing changeChallenges of developing human capitalChallenge of containing costsDemographic ChallengesPerception of employeesEmployees EngagementChallenges for Compensation and BenefitsChallenges on Talent Retention and Development

ConclusionThe role of the HR manager must parallel the needs of the changing organization.

Successful organizations are becoming more adaptable, resilient, quick to change directions, and customer-centered.

So every organization should have to face and solve the challenges for the sustainable development of the organization

Thank You !