Dominant challenges in HRM

Dominant challenges in HRM

The management of organizations have found that human resources have the greatest importance in gaining sustainable competitive advantage and efficiency. Human capital, which shows the creativity, volume of knowledge, technical skills and experience of the organization, gains great importance, thus labor force is considered as productive assets not costly assets (Hendricks, 2002)

According to the survey of Global HR challenges: yesterday, today & tomorrow Conducted by Price water house Coopers, they have identified 3 main global challenges in HR 

1. Change management - 48%

It is a structured approach to transform individuals, teams, and organizations from a current state to a desired future state, to fulfill a vision and strategy. There are several different streams that have shaped the practice of change management

  Change Management :-

• As a systemic process

Adopting to corporate strategies, structures, procedures and technologies to deal with  change internally & externally.(Survey Report of Society for Human Resources Management, 2007)

• As a tool of Transitioning People

 According to the survey of Manager’s Toolkit for Managing Change (2008), It enables people to accept new processes, technologies, systems, structures and values. It is the set of activities that helps people transition from their current way of working to the future desired way of working.

• As a Competitive Tactic

 According to Kudray (1997) it is the continuous process of aligning an organization with its marketplace while being effective than competitors.

2. Leadership development - 35%

Leadership development also proves to be a big challenge. HR professionals continue to fight with understanding the best ways to keep people in the pipeline and develop leaders for future succession planning.

Key (2010) said that leadership is about many things including integrity, hard work, believing in yourself, perseverance, and being part of a team with a high degree of trust. 

According to Macpherson (2010), there are three attributes essential to become a successful leader 
* Resilience
* The ability to work across difference
* The ability to learn. 
Further he explains that a leader can’t come in and impose a plan from the top. The solution has to be created collectively by all the different stakeholders.


3. HR effectiveness measurement - 27%

Human capital is a key component of the market value in any organization.Therefore management needs to focus on planning, recruiting, stabilizing, developing and optimal exploitation of human resources. 

According to Majerova (2008) measuring of the human resource effectiveness means, tracking the achievement of strategic objectives in human resource management and for evaluating of work with human resources.

Referances

Global HR challenges: yesterday, today & tomorrow Conducted by Price water house Coopers (2005). Available at: 
http://wfpma.com/sites/wfpma.com/files/PDFs/hrglobalchallenges.pdf 

(Accessed on 8th May 2018 at 8.30 pm)

Hendricks, L. (2002). How important is human capital for development?

Key, J. (2010). Leading a nation through recession

Kudray, M. and Kleiner, B. (1997) Global Trends in Managing Change

Macpherson, R. (2010). Social Leadership

Manager’s Toolkit for Managing Change (2008). Availabel at:
https://engagelms.scranton.edu/learn/pluginfile.php/54952/mod_resource/content/1/Managers_Toolkit_for_Managing_Change.pdf 
(Accessed on 8th May 2018 at 10.00 pm)

Majerova, R. (2008). Measuring of the Human Resource Effectiveness 

Society for Human Resources Management, 2007 Change Management Survey Report