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2011

PROJECT REPORT
ISSUES AND CHALLENGES OF HRM AND THIER EFFECTS Hr in

Members:

8/17/2011

S.N

ISSUES AND CHALLENGES


Globalization

Likely Impact on existing personnel


Fear of losing job Emerge of new opportunities(highly skilled workers may want to shift to better opportunities)

Potential HR manager roles


Make job secured Pay incentive, promotions Providing jobs demanding the potential in the workers

Likely Impact on organization


Increase in employee burden for a long time Increase in organizations competency

Technological Advancement

Skill deficiency Increase in productivity, efficiency Termination from job

Training and Development Optimum utilization of human resources

Increase in cost Leads to innovation Increase in productivity

Quality Revolution

High pressure Reduction in monotonous working environment Job enrichment

Motivation and Rewards Providing training and directing the workers

Increase in quality competency Increase in cost

Changing Politico-Legal Environment

Labour rights are secured Rise and fall in power of unions affiliated to different political parties

Addressing the labour rights fairly Maintain healthy relationship with the labour unions

Work Force Diversity and Change in Work Force Profile

Formation of informal groups Empowerment of women and lower castes workers Personality clashes

Settle conflicts between informal groups if arises Provide development opportunities Open discussion to get to the root problems and minimize gossip, and office politics to settle personality clashes

Deduction in disputes and grievances regarding labour rights Smooth functioning of organizational operations Harmonious and well coordinated environment in the organization Retention of employee

Unionization

Negotiation Representation information Legal assistance, rights, financial discount, welfare benefits Strength

Organizational complexity

Job complexity Employees are intrinsically motivated

Help settle union grievance respecting the role of union and respecting the employees right Try to settle down illegal activities like strikes if arises Treat all employees fairly and in good faith, honesty, trust Maintain satisfactory working condition Provide training relating to that job Provide more opportunities and challenges

Inability to settle disputes with the union may become the cause of strikes,bands,and lockouts Increase in dividend Goodwill Increase in productivity Increase in productivity

Fig: Chart showing the impact of issues and challenges of HRM to the existing personnel and further on HR managers roles and the whole organization.

GLOBALIZATION
Name for the process of increasing the connectivity and interdependence of the worlds market and business. Globalization has speeded up rapidly in the last two decades as technological advancement makes easier for people to travel, communicate and do business internationally. Organizations have to face increasing competition. Globalization has not left the human resources in organizations untouched. The main effect of globalization in the human resource is that global outsourcing of human resources is increasing. Due to the outsourcing of competitive human resources, existing human resources, who are less competitive, fear the loss of their jobs and those who are highly skilled and competitive may seek for opportunities to shift to the better jobs and organizations where they can find better incentives as well as good career. To minimize such effects of globalization in the organization HR management needs to secure jobs of those who fear the loss of their job as well as they must attract highly skilled workers to work in the organization either by providing better pay incentives or by providing them with jobs and responsibilities which requires the optimum utilization of their potentiality and which lead them to the way of their better career. As the jobs are secured, organization then cannot terminate employees as per required. It will be able to terminate an employee only in the case of the retiree of the worker from the work or any violation of crucial rules or codes of the organization. Thus, the organization faces the employee burden for a long time and this can affect in the productivity of the organization as it has to operate with less skilled and less competent workers. And another case can be the increase in the competency of the organization as it is retaining its highly skilled and competent workers within the organization.

TECHNOLOGICAL ADVANCEMENT
Technology is changing rapidly so it needs to cope with this rapidly changing technology to increase their efficiencies,qualities and competencies to increase the productivity. Human resource also need to cope with this rapidly changing technologies.some technologies require high level of skills but the workers may not acquire the required skills which is known as skill deficiency.Some technologies totally replace the old technologies such as computers have replaced typewriter.In such cases workers having skill to handle old technologies cannot handle the new technology.Instead of training them and make them able to handle the new technology recruiting a new worker possessing that skill will be cheaper so the old worker is better terminated.Advanced technology such as robets and computers have made production process less time consuming,more efficient as well as accurate and this helps in increasing the productivity and efficiency of the workers. To overcome the skill deficiency in workers HRM should provide proper training and development program so that the workers can be familiar with the new technologies.Since the new technology have increase the productivity and efficiency of the workers,managment should utilize such efficient workers optimistically to get the best out of the available human resources. Providing training and develoment programs incure extra cost for the organization.As we know the human competency par the organizational competency,increase in productivity of the human resources par the increase in productivity of the organizations.

QUALITY REVOLUTION
Organization maximize their profit not by counting them but my doing their best. By only increasing the volume of product organizations will not gain profit instead organization should produce the quality product,able to compete with the global market. Due to intense quality competetion it is must to improve the quality of production in a regular basis.

CHANGING IN POLITICO-LEGAL ENVIRONMENT


The Political / Legal Environment can be simply described as the laws and regulations that business has to follow in order to make sure the business owners do not get arrested, or have the business fined for noncompliance of some regulation.Coping with the changing politicolegal has been another challenge for business organization. Law defines the labour rights for the workers and if organization or managment violates any of these rights labours can file a legal case against the managment.Present context union affiliated to different political parties prevail in a single organization.when the political environment change (party ruling the government change ),the union affiliated to ruling party come into power and so do the member of the union and vice versa. Organization should address the labour rights mention by the law of the country.They should not conduct any activities that goes against the labour right. To minimize the effects of political environment in the organization managment should maintain a healthy relationship with union affiliated to different political party. When the labour rights are fairly addressed the disputes and grievances regarding the labour rights will be minimized. Healthy relationship with the labour union and less disputes will discourage stikes and lock outs and thus it will help in smooth operation of business resulting increase in its productivity and profits.

WORK FORCE DIVERSITY


Similarities and differences among employees in terms of age, cultural background, physical abilities and disabilities, race, religion, sex, and sexual orientation is known as work force diversity. In this 21st century work force is being diversified i.e. due to globalization, education, technological advancement people from different age group, culutural background, physical abilities, race, sex, knowledge level, skill level are working under same roof. In this condition it is a crusial challenge for the HRM to manage its work force. In a diversified work force workers form informal groups with the group members sharing some similarities such as caste, religion, nationality, race and so on. Workers may feel secured among such groups and they will express their potentiality. However, in another case disputes may arise between such groups. Also in a diversified work force minority workers like women and lower castes can come into power and gain their social status. Work force diversity can give rise to another situation i.e. personality clashes. Presonality clashes means the

condition when the personalities of two persons differ from one another such as some worker may has outgoing spontaneous, and talkative personality whereas the other may has intospective, serious, and quiet personality. Personality clashes can be either great strength to the individual or team or it can be cause of conflict and disputes. HRM need to settle the confilcts between such informal groups and the personality clashes by organizing open discussion programs where individuals and groups can express their views and ideas so that organization cane get to the root of the problem. HRM should provide developmental opportunities to inferior work force for the overall development of the work force. It should manage special training programs for such work groups. When the conflicts and the personality clashes are settled a harmonious and well coordinated environment is established in the organization and this will boost the productivity and efficiency of the organization. When developmental opportunities are provided to the workers they will see the better career in being enrolled with the organization and so the organization will retain its well skilled, experienced and developed workforce.

UNIONIZATION
Unionization is an organization of workers who act together to secure benefits and rights in workplace. Not all workers are unionized, but many are, especially when they work for large companies. It encourages collective bargaining. HRM often faces challenges from union whenever they try to discipline, suspend or terminate participating employees. If their employees are members of union then HRM cannot make their own decisions but have to satisfy union by those decisions too. So, now a days unionization has become the top challenges to HRM. Because of the union or unionization of the employees, employee can represent their problems at work to union representative and union representative helps to sort out the difficulty with the management or employer. Negotiation is about finding a solution between management opinion and union member opinion finding out the

members views and relaying that views to the management. Unions have a wealth of information which is useful to members at work. Employee can get advice on a range of issues like how much holidays they are entitled to each year, how much pay they will get if they go on maternity leave and how they can obtain training at work. Courses of training and development for their rights, health and safety and other issues are member services which have increased during last ten years. Union provides legal assistance, financial discounts, and welfare benefits. One has a power and strength if he/she is member of union. Collective bargaining is fruitful than sole bargaining so they can raise their voice most importantly right over wages, working hours and other terms and condition of employment. They will not be abuse by their subordinates. Respect is the key to a successful relationship between the employer and the union representing its employee. The employer must respect the role of the union as sole exclusive agent of employees and respect the fact that employees have right to join and participate in union including the right to strike, without fear of intimidation, coercion, harassment, or undue influence by the employer. But HRM must try to settle down the illegal activities that is harming organization like strikes. Establish and maintain satisfactory working conditions, hours of work, and wages for all employees who are subject to the provisions of the agreement. To foster good relations as much as possible HRM should try to solved disputes between a worker and his/her supervisor and treat all employees fairly and in good faith, honesty and do trust. The employer must provide fair and competitive wages, satisfactory working conditions, and hours of work and provide benefits. HRM should facilitate the good communication system that is two way communications. If the HRM could solve the disputes than there will be good relationship between employee union and the employer in the organization, if not than disputes may increase and leads to damage in the organization. Inability to the parties to reach an agreement offering the union demands may leads to industrial action, cumulating strike action or management lockout or binding arbitration and harms the organization smooth functioning and occur losses. And if could fulfill union demands, there will be good environment in the organization that will earn goodwill and motivated employee to make increase in productivity but in course of fulfilling demands organization dividend and cost will increase.

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