Brief of Information System (IS)

An integrated set of components for collecting, storing, and processing data and for
providing information, knowledge, and digital products. Business firms and other
organizations rely on information systems to carry out and manage their operations,
interact with their customers and suppliers, and compete in the marketplace.
Information systems are used to run inter-organizational supply chains and electronic
markets. For instance, corporations use information systems to process financial
accounts, to manage their human resources, and to reach their potential customers
with online promotions. Many major companies are built entirely around information
systems. These include eBay, a largely auction marketplace; Amazon, an expanding
electronic mall and provider of cloud computing services; Alibaba, a business-to-
business e-marketplace; and Google, a search engine company that derives most of its
revenue from keyword advertising on Internet searches.
Governments deploy information systems to provide services cost-effectively to
citizens. Digital goods—such as electronic books, video products, and software—and
online services, such as gaming and social networking, are delivered with information
systems. Individuals rely on information systems, generally Internet-based, for
conducting much of their personal lives: for socializing, study, shopping, banking, and
entertainment.
As major new technologies for recording and processing information were invented
over the millennia, new capabilities appeared, and people became empowered. The
invention of the printing press by Johannes Gutenberg in the mid-15th century and the
invention of a mechanical calculator by Blaise Pascal in the 17th century are but two
examples. These inventions led to a profound revolution in the ability to record,
process, disseminate, and reach for information and knowledge. This led, in turn, to
even deeper changes in individual lives, business organization, and human governance.
The first large-scale mechanical information system was Herman Hollerith’s census
tabulator. Invented in time to process the 1890 U.S. census, Hollerith’s machine
represented a major step in automation, as well as an inspiration to develop
computerized information systems.
One of the first computers used for such information processing was the UNIVAC I,
installed at the U.S. Bureau of the Census in 1951 for administrative use and at General
Electric in 1954 for commercial use. Beginning in the late 1970s, personal
computers brought some of the advantages of information systems to small businesses
and to individuals. Early in the same decade the Internet began its expansion as the
global network of networks. In 1991 the World Wide Web, invented by Tim Berners-
Lee as a means to access the interlinked information stored in the globally dispersed
computers connected by the Internet, began operation and became the principal
service delivered on the network. The global penetration of the Internet and the Web
has enabled access to information and other resources and facilitated the forming of
relationships among people and organizations on an unprecedented scale. The
progress of electronic commerce over the Internet has resulted in a dramatic growth in
digital interpersonal communications (via e-mail and social networks), distribution of
products (software, music, e-books, and movies), and business transactions (buying,
selling, and advertising on the Web). With the worldwide spread
of smartphones, tablets, laptops, and other computer-based mobile devices, all of
which are connected by wireless communication networks, information systems have
been extended to support mobility as the natural human condition.
As information systems enabled more diverse human activities, they exerted a
profound influence over society. These systems quickened the pace of daily activities,
enabled people to develop and maintain new and often more-rewarding relationships,
affected the structure and mix of organizations, changed the type of products bought,
and influenced the nature of work. Information and knowledge became vital economic
resources. Yet, along with new opportunities, the dependence on information systems
brought new threats. Intensive industry innovation and academic research continually
develop new opportunities while aiming to contain the threats.

Components Of Information Systems

The main components of information systems are computer hardware and software,

telecommunications, databases and data warehouses, human resources, and
procedures. The hardware, software, and
telecommunications constitute information technology (IT), which is now ingrained in
the operations and management of organizations.

What is Human Resource Information System (HRIS)?

A HRIS, which is also known as a human resource information system or human

resource management system (HRMS), is basically an intersection of human resources
and information technology through HR software. This allows HR activities and
processes to occur electronically.

To put it another way, a HRIS may be viewed as a way, through software, for
businesses big and small to take care of a number of activities, including those related
to human resources, accounting, management, and payroll. A HRIS allows a company
to plan its HR costs more effectively, as well as to manage them and control them
without needing to allocate too many resources toward them.

In most situations, a HRIS will also lead to increases in efficiency when it comes to
making decisions in HR. The decisions made should also increase in quality—and as a
result, the productivity of both employees and managers should increase and become
more effective.

What are the Benefits of a HRIS ?

The human resources department within any organization is considered to be highly

critical for the entire organization. Its many functions serve as a supportive background
for the company by providing everything from skilled and talented labour to
management training services, employee enrichment opportunities and more. Since
labour is the single largest expense for most organizations, human resources helps
companies derive the greatest value from this important asset.

In order to function optimally, however, human resources departments must have the
right tools and resources in place. A HRIS can be utilized within the department to help
human resources employees and managers improve their productivity and the results
of their efforts.

Trends of Human Resource Management for effective HRIS

1. HR Innovation
Innovation within the Human Resources industry can be seen with HR professionals
setting the pace with new performance management models, new learning methods,
new ways to reduce bias, and new approaches to recruit and train people.

2. Surge of People Analytics

With its ability to produce insights into the workforce, help companies retain talents
and spot employees who are likely to leave, the use of People Analytics is becoming
prevalent in 2018. Data provided allows HR professionals to have a deep
understanding of employee’s needs, concerns and so on.

3. Changes in Talent Sourcing

The norm is shifting from full time employment trends to a blend of increasingly hiring
remote workers, workers on flexible schedule, part time workers and consultants. This
type of approach is changing the way HR professionals recruit candidates with
technology leading the charge.

4. Popularity of Wellness Apps

With the understanding that employees must be emotionally and physically well in
order to perform at their maximum levels, HR managers are taking the steps to ensure
that workers are monitored and empowered to take care of themselves. Health and
wellness apps are rapidly being adopted to measure individual performance, activity
and fitness levels, with great improvements in engagement, health, and mental
wellbeing.

5. Increased Migration to the Cloud

With cloud-based HRMS, payroll, and talent management services, as well as financials
and other ERP solutions offerings in the cloud, the question is no longer “if” a company
will move to the cloud, but rather “when” and “how.”

6. Rise of Intelligent Self-Service Tools

There is a fast-growing shift towards more data-driven, intelligent digital organizations
and more self-sufficient/analytical employees. This is increasing the need for tools that
integrate case management, document management, employee communications, and
help-desk interactions. Self-service and employee experience platforms are the
backbone of employee service centers and are simplifying training, expense reporting,
time tracking, and almost every other HR function.

7. New Breed of Corporate Learning Tools

Companies are modernizing learning and development to be more democratic, self-
directed and appealing to younger workers by making greater use of video and other
new breed of micro-learning platforms including virtual reality, augmented reality,
experience platforms, modernized learning management systems, and AI-based
systems for learning and training.

8. Smarter Recruitment
The market for recruitment tools is thriving with innovation, as HR needs tools to help
find people with the right capabilities and learning skills, not just technical or cognitive
abilities. High volume recruitment is being automated, skilled job hiring is being
transformed by open sourcing tools, recruitment management systems, and improved
assessments.

9. Blockchain
Also called distributed ledger technology, blockchain is basically a database that keeps
an ever-growing list of records. It allows digital information to be distributed but not
copied. In HR, potential uses for blockchain include digital process management, solve
certification issues, increase transparency, improve overseas electronic payroll,
automate routine and data-heavy processes, cybersecurity and fraud prevention.

10. Intelligent Apps and Analytics

Machine learning HR applications is changing the nature of work and the structure of
the workplace. Apps for attracting talent, worker performance analysis, applicant
tracking and assessment, enterprise management, internal management, etc. are
enhancing better decision making with the use of machines as a tool and collaborator.
Everything you need to know about the challenges of HRM. The organisations today
realise that human resource is the most valuable asset and are adopting policies like
competence building, job rotation, performance linked pay, empowerment, etc., which
promote the overall development of the human resources.
Greater stress is also being given in the field of employee welfare and social security
with increased post-retirement benefits like health insurance, provident fund, pension,
etc.
HR professionals have to play a vital and pivotal role by acquiring, preparing and
maintaining human resources for the meeting various challenges.

Social, economical, technological conditions are changing. These changes are already
affecting business and will have an even greater impact in future. Human behaviour is
also complex.
The individuals rarely react exactly in an identical manner even in identical situations.
These changes pose major challenge to the human resource management. The human
resource function has to make a pro-active and creative response to these challenges
and the consequence they hold for the human resource function.

The challenges of HRM

A: Challenges of HRM Faced by HR Professional

1. Managing Workforce Diversity
2. Meeting Aspirations of Employees
3. Empowerment of Employees
4. Management of Human Relations
5. Dynamic Personnel Policies and Programs
6. Building Responsive Organisation
7. Creating Dynamic Work-Culture
8. Building Core Competence and Creating Competitive Advantage
9. 9Outsourcing HRM Functions
B: Challenges of HRM Faced by Organisations over the Last Few Decades
1. Technology
2. Economic Conditions
3. Social
4. Political
5. Labour Legislation
6. Workforce Diversity
7. Levels of Education
8. Corporate Reorganization
9. Competitive Advantage
10. Quality of Work Life.

C: Challenges of HRM into 3 Broad Groups

1. At Organisational Level
2. Workplace Level
3. Department Level.

D: Challenges of Human Resource Management Faced in the 20th Century

E: Major Challenges of HRM in Retail Industry

1. Recruitment
2. Training and Development
3. Compensation
4. Attrition
5. Retention.
 Challenges of HRM: Faced Over the Decades, by HR Professionals,
Organisations and Retail Industry

The organisations today realise that human resource is the most valuable asset and are
adopting policies like competence building, job rotation, performance linked pay,
empowerment, etc., which promote the overall development of the human resources.
Greater stress is also being given in the field of employee welfare and social security
with increased post-retirement benefits like health insurance, provident fund, pension,
etc.

HR professionals have to play a vital and pivotal role by acquiring, preparing and
maintaining human resources for the meeting the above challenges.

In doing so, HR professionals will face the following challenging tasks:

Challenge # 1. Managing Workforce Diversity:

An important challenge that human resource managers face involves workforce
diversity, i.e., the increasing heterogeneity of organisations with the inclusion of
employees from different groups such as women, physically disabled persons, retired
defence personnel, backward classes, ethnic groups, etc.
Whereas globalisation focuses on differences between personnel from different
countries, workforce diversity addresses differences among people within the same
country.
For instance, more and more women have been joining the organisations in India and
women executives have also been occupying important positions at the middle and
top levels in the organisations. This in itself is a challenge for organisations as,
traditionally, the Indian society has been male dominated.
Workforce diversity has significant implications for the management. The managers
will be required to shift their approach from treating each group of workers alike to
recognizing differences among them and following such policies so as to encourage
creativity, improve productivity, reduce labour turnover and avoid any sort of
discrimination.
When workforce diversity is managed properly, there would be better communication,
better human relations and congenial work culture in the organisation.

Challenge # 2. Meeting Aspirations of Employees:

There has been a rise in the proportion of employees in today’s industries who belong
to the younger generations whose aspirations are different from those of the earlier
generations. Today’s workers are more careers oriented and are clear about the
lifestyle they want to lead. Considerable changes have been noted in the career
orientation of the employees.
They are becoming more aware of their higher level needs and this awareness would
intensify further among the future employees. The managers would be required to
evolve appropriate techniques to satisfy the higher level needs of the employees and
develop suitable plans for their career advancement.
Challenge # 3. Empowerment of Employees:
There has been a general change in the profile of workforce in industrial and other
organisations. The organisations in future will get better qualified and career oriented
young employees. The proportion of professional and technical employees will also
increase as compared to the blue collared employees.
They will seek greater degree of participation in goal setting and decision-making and
also demands greater avenues of self-fulfilment. To respond to these demands,
organisations will have to be redesigned or restructured to empower the employees so
that they have sufficient autonomy or freedom to take decisions while performing
their jobs.
Empowerment involves giving the employees more information and control over how
they perform their jobs. Various techniques of empowerment range from participation
in decision-making to the use of self-managed teams. In future, organisations will
follow team structures which will pave the way for empowerment of lower levels.
Empowerment would be all the more necessary to speed up the process of decision-
making, make use of environmental opportunities and to serve the customers and
society better.

Challenge # 4. Management of Human Relations:

Management of human relations in the future will be more complicated than it is
today. “Many of the new generation of employees will be more difficult to motivate
than their predecessors. This will in part be the result of a change in value system
coupled with rising educational levels. Greater scepticism concerning large
organisations and less reverence for authority figures will be more common.
Unquestioning acceptance of rules and regulations will be less likely.”
Since workforce in future will comprise better educated and self-conscious workers,
they will ask for the higher degree of participation and avenues for self- fulfilment.
Moreover, the proportion of professional and technical employees will increase in
relation to blue-collar workers. The ratios of female employees in the total workforce
wall also rise. Integration of women within managerial ranks might itself be a problem.
Money will no longer be the sole motivating force for majority of the workers. Non-
financial incentives will also play an important role in motivating the workforce. In
short, human resources will be treated as assets which will appear in the Balance
Sheets of business organisations in future.

Challenge # 5. Dynamic Personnel Policies and Programs:

The Human Resource Manager of tomorrow will not only look after personnel
functions, but will also be involved in human resource policies and programs for the
entire organisation. Similarly, human resource management is not merely going to be
an exclusive job of the HR Manager, but every executive in the organisation would be
made responsible for the effective management of people in his unit.
Thus, management of human resource will receive greater attention of all managers
from top to bottom. The human resource manager would play a key role in the
formulation of personnel policies, programs, plans and strategies of the organisation.
Every HR program will have to be properly planned and directed by the human
resource manager in consultation with the line and functional managers.

Challenge # 6. Building Responsive Organisation:

The Human Resource Manager will have to contribute tremendously to the building up
of responsive organisation. Creating adaptive customer-oriented organisation would
require soliciting employees’ commitment and self-control and encouraging
empowerment of employees.
Instead of imposing himself as the traditional boss, the future manager will have to
think of himself as a ‘team-leader’, ‘internal consultant’ and ‘change facilitator’.

Challenge # 7. Creating Dynamic Work-Culture:

The human resource manager will have to mobilise a new work ethic so as to assist the
top management in setting up and enforcing quality standards. Greater efforts will be
needed to achieve group cohesiveness because workers will have transient
commitment to groups.
As changing work ethic requires increasing emphasis on individuals, jobs will have to
be redesigned to provide challenge to the employees. Flexible starting and quitting
times for employees [flexitime] may become necessary. Further, focus will shift from
extrinsic to intrinsic motivation of employees.
In future, changes will have to be initiated and managed to improve organisational
effectiveness. A work culture conducive to absorption of changes in the technological,
economic, political, socio-cultural and international environment will have to be
nourished by the HR/Personnel executives if they want to acquire higher status in
industry and society.
They will also have to make top management more actively involved in the
development of human resources for meeting the challenges of environment and
enhancing organisational effectiveness.
Over the years, human resource management has emerged as a discipline in its own
right and the HR manager as a professional. Professional dynamics will enhance its
prestige and quality of service. However, its survival and success in future will depend
upon the judicious application of knowledge and skills available.
Human resource management will emerge as a well-established, well-respected and
well-rewarded profession, comparable to other established professions provided the
challenges and opportunities are successfully exploited for its advancement.

Challenge # 8. Building Core Competence and Creating Competitive Advantage:

The human resource manager has a great role to play in developing core competence
by the firms. A core competence is a unique and inimitable strength of an organisation
which may be in the form of human resources, marketing capability, or technological
capability. If the business is organised on the basis of core competence, it is likely to
generate competitive advantage.
Because of this reason, many organisations have restructured their business by
divesting those business activities which do not match core competence or acquiring
those business activities which fit their core competence such as Gujarat Ambuja
acquiring cement companies and Reliance Industries acquiring yam companies.
In fact, organisation of business around core competence implies leveraging the
limited resources of the firm. It needs creative, courageous and dynamic leadership
having faith in the organisation’s human resources.
In today’s globalized market piece, maintaining a competitive advantage is the
foremost goal of any business organisation. There are two important ways a business
can achieve a competitive advantage. The first is cost leadership which means the firm
aims to become the low-cost leader in the industry.
The second competitive strategy is differentiation under which the firm seeks to be
unique in the industry in terms of dimensions that are widely valued by the customers.
Putting these strategies into effect carries a heavy premium on having a highly
committed and competent workforce. Such a workforce would enable the organisation
to compete on the basis of market responsiveness, product and service quality,
differentiated products and technological innovation. Creation of competent and
committed workforce is a great challenge for the human resource manager.

Challenge # 9. Outsourcing HRM Functions:

These days, many organisations are outsourcing routine HRM functions so as to focus
on strategic HR issues that affect corporate performance and shareholder value. The
HRM functions which are of routine type and can be safely outsourced include
recruitment, selection, compensation, job evaluation, training, etc. Outsourcing of
such functions would enable the management pay greater attention to core business
activities.
The term ‘outsourcing’ means getting some service from external service providers or
agencies rather than performing it within the organisation. This practice is called
Business Process Outsourcing (BPO). The basic feature of BPO is that companies hire
out on contract those services or tasks which fall outside the area of their ‘core
competence’.
For example, a business enterprise may outsource employment of personnel, training
of personnel and payroll accounting to a specialised service provider, often called a
BPO film.
Outsourcing of routine HRM functions is cost effective. The management need not
invest in the staff and necessary infrastructure for the performance of routine
functions. Further, BPO firms use their expertise in the performance of such functions.

Challenges of Human Resource Management – Faced by Organizations

over the Last Few Decades
The management of human resources have changed over the last few decades but this
change has been relatively slow in comparison to the changes in other areas of
business and management.
The management of human resources are facing the following challenges:
1. Technology:
An organization’s technology is the process by which input are transformed into
output by its workforce. Revolution in technology and ether technological innovations
which adversely affect the interests of the workforce and there occupational mobility
There is a need to upgrade abilities of employees if the organization want to survive in
a competitive world market.
Hazardous, risky, and repetitive jobs could be handed over to sophisticated robots. The
old concepts of work have under gone dramatic change. The changes have been
coming so fast that organizations have realized that they must perform and prepare
for a great range of human resource flexibility.
2. Economic Conditions:
The economic conditions have a strong influence on human resources management
People, goods, capital and information are moving around the globe and number of
organizations are trying to become global players. IBM, Coca-Cola, Motorola and
Gillette are earning more than half of their revenues from operations outside USA.
President Clinton’s successful endorsement of NAFTA [North American Free Trade
Agreement] will further increase efficiency and markets, and create a greatly,
increased competitive challenge to enterprises worldwide. India has become a
sourcing centre for many global organization. They have successfully utilised the
services of skilled manpower which is available here at low price to create distinct cost
advantages for their products.
Overall, growing international competition and interdependency, intensifies the
pressure on executives, supervisors and all employees to become more innovative,
more quality and cost conscious. Therefore, it is the responsibility of HR managers to
play challenging roles and create a competitive advantage for the organization, into
global market place.
3. Social:
Changing social trend around the world help account for importance of the human
resources management to the organization Social applications, both formal and
informal, will have large influence on the attitudes and behaviour of employees at
work because people are normally social oriented. The job of managing become more
challenging and more variable. This trend intensify the importance of all managers’
roles in selecting and managing human talent.
HR managers have realized the importance of conducting their business in a socially
relevant and responsible manner. Organisations do not operate in isolation. They are
the part of society therefore social impacts have to be carefully evaluated before
undertaking any programme. If public believes that any organisation is not operating in
the interests of society then it is the responsibility of an organization to alter its
practices in respect to satisfy society’s needs.
4. Political:
Political scenario effect the functioning of HR managers due to ideologies, opinion and
thinking power of political parties. For smooth working of organization’s political
stability is a necessary parameter because on the basis of this the organizations and HR
managers will formulate their policies and practices. Political interests and unstability
create unrest and loss of production to the organization.
The role of trade union is also very important. Due to the positive attitudes of trade
union the Bajaj Auto worliplant signed a wage and productivity of agreement with its
own internal union in year 1996. The result of awareness of workers, organization such
as Polychms, Philips and Mahindra have successfully implemented a VRS scheme for
his employees.
5. Labour Legislation:
There have been a number of labour legislation both in the states and at the centre
which are influencing HRM policies and programmes in a big way due to lack of fuller
understanding and overlapping among labour Acts. Although, the HR managers cannot
manage the personnel unilaterally because it has to abide by the rules and regulations
imposed by the Government from time to time.
The important legislation enacted in India affecting HRM are:
The Workmen’s Compensation Act, 1923, The Trade Unions Act, 1926, The Payment of
Wages Act, 1936, The Factories Act, 1948, The Minimum Wages Act, 1948; The
Employment State Insurance Act, 1948, Industrial Disputes Act 1948.
The Industrial Employment (Standing Orders, Act,) 1946. The Provident Funds and
Miscellaneous provisions, Act, 1952, The payment of Bonus Act, 1965, The
Employment Exchange [Compulsory Notification of vacancies] Act, 1959, The Payment
of Gratuity Act, 1972, The Maternity Benefit Act, 1961 and The Apprentice Act, 1961,
etc.
6. Workforce Diversity:
Diversity issues in Indian organizations are peculiar owing to differences in social ethos,
cultural differences and regional origins. Due to this changing nature of the workforce
the organizations are becoming heterogeneous in term of age, gender, knowledge,
ability and religion. Specially the increase of women and reserved categories has
resulted in the need of organisation to re-examine their policies, practices and values.
In addition to this HR managers have to deal with issues of child labour and contract
labour.
7. Levels of Education:
The educational level of the workforce are better. They have more expectations about
equity and better working conditions. Better educated employees always challenge
and question management decision and want more meaningful work and a great voice
in decision making process.
Educated workers often demand more responsibility and autonomy than their
employers are willing. Therefore, the organization has to develop a more flexible
approach to all aspects of HRM. Managers will be required to face a wide variety of
demands from employees.
8. Corporate Reorganization:
In the free economics of the world the reorganization of corporate policies and
corporate culture are very essential because these factors have a major impact in
determining the interaction between human resource management and other
departments with-in the organization.
The political changes, faced by employee in the organization during the course of
reorganization are as follows:
  Job changes including new roles.
 Transfer of new geographic locations.
 Change in compensation and benefits.
 Changes in career possibilities.
 Changes in organizational power, status and prestige.
 Staff changes including new colleagues, bosses and subordinates.
 Creation of open culture.
 Establish two way communication system.
 Establish relationships between people and position.
 Establish shared values and beliefs within an organization.
The understanding of the above listed points within the organization is very important
in order to formulate appropriate HR policies and strategies.
9. Competitive Advantage:
An adequate HRM practices is helping in achieving the competitive advantage. This
refers to unique benefits that an organization can offer to its customers. The benefits
can range from lower prices for equivalent services offered by competitors, superior
quality of products better after sales service, guarantees on trouble free performance
or even special extra advantages that justify a premium price. If customer perceive the
uniqueness of products or services, the consequence is competitive advantage.
The human resources has become central to competitive advantages is brought out
effectively in the following Jack Welch, Chief Executive Officer, General Electric – “We
have found what we believe to be the distilled essence of competitiveness. It is the
reservoir of talent and creativity and energy that can be found in each of our people.”
10. Quality of Work Life:
The quality of work life means different things to different person. To Prof. Lloyed it
means, “the degree to which members of a work organization are able to satisfy
important personal needs through their experiences in the organization.” There are
many factors which can contribute to “quality of work life.”
Walton cites the following:
 Adequate and fair compensation.
 Appropriate balance of work.
 A safe and healthy environment.
 Opportunity for continued growth and security.
 An environment in which employees develop self-esteem and a sense of
identify.
 Job enrichment and job rotation.
 Interpersonal skills and team work.
 Developing and using employees skills and abilities.
 Due process and privacy.
 A sensible integration of job career and family life and leisure time.
These considerations have a profound and sustained impact on the way human
resources are managed.
 Challenges of HRM – At Organisational Level, Workplace and
Department Level
Social, economical, technological conditions are changing. These changes are already
affecting business and will have an even greater impact in future. Human behaviour is
also complex. The individuals rarely react exactly in an identical manner even in
identical situations.
These changes pose major challenge to the human resource management. The human
resource function has to make a pro-active and creative response to these challenges
and the consequence they hold for the human resource function.
Some of these challenges are discussed under three broad groups are:
1. Organisational Level.
2. Workplace.
3. Department Level
1. Challenges at Organisational Level:
The organisational level challenges include:
(i) Integration of human resource plans with corporate plans.
(ii) Task of motivating executives in view of reduced promotional opportunities.
(iii) Wages settlement and executive salaries.
(iv) Integration of change techniques.
(v) Task of keeping the organisation young and productive.
(vi) Industrial relations movement from conflict to cooperation.
(vii) Development of an organisational culture.
These are explained below:
(i) Integration of HR Planning:
There is a challenge relating to integration of human resource planning with strategic
plans of the organisation. Here, effort may be made to forecast the human resource
required to implement the plans of the entire organisation for meeting varied
requirements including expansion, diversification or reduction in operations.
The process of integration is likely to positively reinforce the human resource objective
of the enterprise and effect human resource planning. The integration of training and
development objectives and strategies with the corporate plans represents a major
challenge to improve organisational performance.
(ii) Motivation of Executive:
The developments pose a great challenge to human resource managers forcing them
to evolve measures for motivating the executives in a stagnant environment. To
overcome the frustration arising from blocked upward mobility among executive’s
efforts may be made to redesign the job as a motivational measure for providing
alternate job experience or providing lateral movement.
Other motivational measures include indirect compensation or benefits, recognition of
their personal worth and treatment a dignified way. A friendly and supportive
relationship can bring individuals a source of worth. A superior may treat individuals a
source of worth. A superior may treat individuals with dignity and recognition of their
personal worth.
(iii) Wages and Salary Differentials:
The third challenge involves wage settlements and emerging trends in the dynamics of
relationship with respect to executives. There are varied challenges in the domain of
wage and salary administration especially in public sector enterprises in India. The
Bureau of Public Enterprise issues guidelines to regulate negotiations in public
enterprises which do not remain unknown to even trade unions.
(iv) Change Techniques Integration:
Business is altered by new or different technologies, product lines, financial resource,
marketing plans and ways of managing human resources. Hare we are attempting to
focus on strategies to improve business effectiveness through management of human
resource.
The application of innovative change techniques has become imperative in view of the
declining productivity growth and the economic competition. While introducing
change the companies use varied amount of participation and adhere to a process-
oriented approach.
a. Organisational development
b. Productivity sharing plans.
c. Joint participation
d. Problem-solving groups
e. Autonomous work team.
(v) To Keep Organisation Young Productive:
There is a challenge task of maintaining a young and productive Organisation. Here,
effort may be made to task into account the emerging dimensions relating to the
unbalanced age structure of the human resource in the future. This necessitates
adherence to a designed strategy for renewal of manpower in a phased manner. In
recent past a large number of giant industrial enterprises were set up.
These enterprises recruited large number of young qualified industrial workers in the
same age group of 20 years within a span of 4-6 years of its inception. A new
dimension relating to the future age structure of the manpower is important to
upkeep the efficiency, capability and productivity of the organisation.
In view of this, a designed strategy for renewal of manpower is important in a phased
manner a few years ahead of mass retirement period is called for. Young blood has to
be inducted to balance the aged workforce and revitalize the organisation.
(vi) Development of Good Industrial Relations:
The present industrial relations situation in India is marked by multiplicity of unions
giving rise to barriers in the process of bi-partisan and collective bargaining. It has
become very difficult for the management to ascertain who the right representative
among their employees is.
The unions tend to make irrational and false promises and adopt erratic and violent
measures to compete with the rival unions. Indeed inter-union rivalry stemming from
political groupism has caused violent clashes designed by outside leaders. This
problem can be resolved by evolving a system of recognition of trade unions.
In connection with the above measure an attempt may be made to accomplish
industrial harmony through workers participation which has vast potential for the
integration of workers with the organisation. However, the practice of this concept
must start from top and percolate downwards to supervisors. The secret of
harmonious industrial relation rests with the improved inter-personal interaction
based on trust and confidence between workers and management.
(vii) Development of Good Culture:
There remains to be accomplished a challenging task of developing an organisational
culture where members have values conducive to organisational growth, innovation
and effectiveness. Organisational growth, innovation and effectiveness are influenced
by the members and their values system.
A managerial behaviour has special impact because of its strong modelling influence.
Such values are essential for institution building so that continuity and vitality
achieved.
2. Challenge at Workplace:
Workers are working at the workplace with different machines, equipment’s and
facilities.
Methods, system and technology are changing very fast and following challenges are
faced:
(i) Adoption to Technological Changes:
Changes in technology in altering the nature of work itself. We are entering the age of
the electronic workplace. Managers and workers which will be increasingly subject to
technical obsolescence. Many will also be displaced by the advancing technologies.
These changes are both good and necessary in business are to remain competitive.
However, it would be a serious error to ignore the impact of these changes on
employees. The challenge to the human resource function is a large one.
(ii) Challenge from Hardly Working Workers:
There will be some individuals in any organisation who are just not carrying their own
weight. They are not considered as an asset at least for the organisation.
The causes for such ineffective or non-performing manpower can be two-fold:
a. Causes due to personal factors of the individual.
b. Causes due to underutilization of manpower arising out of external factors.
The task of utilizing non-performers necessitates development of competence among
executives to assist the unutilized workforce by understanding its strengths and
weaknesses, providing feedback on its performance and Vising counselling to revitalize
it.
(iii) Challenge Related to Grievances:
There is hardly a company or an industrial concern which functions absolutely
smoothly at all times. In some, the employees have complaints against their
employers, while in others it is the employers who have a grievance against their
employees. These grievances may be real or imaginary, valid or invalid, genuine or
false.
But grievance will be invariably there. The nature and pattern of grievance may differ.
The way of grievances may differ the way of their expression may differ but they are
there. Hence, the need for creating a formal grievance handling procedure becomes a
must.
(iv) Focus on Socio-Psychological Needs:
There is a challenge relating to the shift from economic man concept of human being
to a dynamic self-activating concept. This necessitates emphasis on the overall quality
of work life and fulfilments of socio-psychological needs of people. Modern
employment contract will have to provide assurance for the overall quality of work life
rather than mere economic support.
(v) Improvement in Managerial Effectiveness:
There is a challenge relating to improving the effectiveness of all managers in the
process of human resource management. All executives have develop concern for
different personnel and industrial relations functions such as – appraisals, rewards,
punishments, promotions, selection, training and development, discipline and dealing
with unions.
3. Challenge at HRM Department Level:
The following are challenges at HRM department level:
(i) Process orientation.
(ii) A concern with strategy and proactive approach.
(iii) Research orientation.
(iv) Developing personnel policies.
(v) Strengthening a matrix personnel department globalisation.
(vi) There must be a focus on process orientation involving development of formal
processes which the line executive can use in managing people effectively.
(vii) There must be a concern to development human resource strategies in line with
organisational goals. The development of these strategies must be based on
environmental scanning, embracing, emerging political issues, socio-cultural changes,
economic factors, advancing technology and international events influencing domestic
labour relations. This anticipation of problem areas by environmental diagnosis is a
very crucial strategy.
(viii) The challenge relating to research orientation involves audit of current practices
and manpower utilization, experimentation of innovative ideas, evaluation of
personnel programmes and computerization of manpower information system for
enhancing the quality and efficiency.
(ix) There is a challenge, for developing personnel policies. This may involve
improvement of human resource system to fulfil growth and development needs of
people, formulation of policies to meet organisation’s internal requirements, long-
term perspective and maintenance of consistency, and firmness in implementation and
interpretation of these policies.
(x) There is a challenge relating to reinforcement of a matrix organisational personnel
department at plant level.
This challenge can be met by:
a. Working closely with the like executives.
b. Seeking to handover the personnel function to the line executives through
persuasion, education, and adopt a consultative role.
c. Evolving a participative approach in developing personnel policies.
d. Maintaining a high level of reputation of integrity and ability.
 Challenges of Human Resource Management – In the Post-Modern
Globalized World
The question arises in the mind, how the HRM would change and what types of role
has been played in the post-modern globalized world.
The HRM has been challenge to bring for the future in the following things:
i. In the HRM, companies or organisations are expected to invest more in health or
welfare of workers.
ii. In the HRM, multinational corporations is bringing cross-cultural work force and the
consequent need to manage diversity on cultural, ethnic linguistic, religious, etc.
properly.
iii. In the HRM, organisations emphasis on maximizing strategies viz. total quality
management, flexible management systems, etc.
iv. In the HRM, participative management for knowledge workers and it need an active
policy to retain good workers is expected to be increasingly felt in the coming years.
v. Flexible structuring in organisational design in response to changing requirements
would be needed.
vi. Now the organisations are less linear and more complex and also environment more
uncertain than predictable.
vii. Today, organisation basically desired for a total quality management, which is
based on productive process and particularly in science and technology.
viii. In the HRM, organisations are perceived as organic entities constantly and
continuously vitalized and growing.
ix. In the HRM, demographic changes in the work force will be a challenge as more
old/young women/backward castes are expected to force changes in HR policies.
The future of HRM, would bring or based on participative management and it fully
deals with a total quality management it specially deals with the science and
technology. Training is only one of the options to learning and development. Training
would need to be tailored according to changing requirements viz, customer
preferences, specific need of a strategic plan in a given time frame, etc.

Challenges of Human Resource Management – Faced in the 20th Century

The 20th century has brought about revolutionary changes in business management

practices across the world. Companies fight with one another in the market arena with
human resources as a competitive weapon. The performance efficiency among
companies is reflected by the quality of human resources deployed in these
enterprises. HRM is the prime mover of management of people at work. It has to
encounter a lot of challenges in the corporate journey.
Geographical boundaries of a country have only political relevance. The economic
relevance has transcended the geographical frontiers of countries. Enterprises set up
their facilities abroad and anywhere in the home country. They are trying to become
global players in order to survive in the market. Business managers transact business in
multiple languages and in different cultures. In the globalized environment, HR
managers are required to play challenging roles and create competitive advantage for
their firms.
Many Indian companies have become global companies. They are reorganising their
operations and refocusing their energies board on core competence. Many non-core
areas are out sourced to external agencies specializing in areas. It helps the companies
focus precious resources to core areas of the business. Firms are starting their
operations where human resources with higher skill and competence are available at
lower cost.
Companies either directly set up their facilities or access the overseas market through
tie up with local players. Besides concerns take the inorganic route to grow big in size
through merger and acquisition.
In this context, HR managers have to play a vital role.
Some of their roles include:
a. Anticipation of change – HR managers have to anticipate change and take proactive
steps to respond to changes when they unfold in the environment.
b. Security for women employees – Globalization has made the people work round the
clock in response to changes in global timings. Laws have been changed in India to
enable women employees do night shift. In this context, HR managers have to arrange
for security and safety of women employees commuting to work and leaving the
workplace during late night hours.
c. Periodical training – HR managers have to arrange periodical training to update and
upgrade the skills and competency of workers.
d. Focus on high net worth employees – HR managers have to identify high net worth
employees and arrange to suitably reward them by awards, rewards and fast track
promotions and so on.
e. Career counselling – Provide an atmosphere and institute a mechanism to give
career counselling to human resources.
f. Cross-cultural training – Arrange for cross-cultural training to employees deputed for
global assignment.
g. Job satisfaction survey – Undertake periodical surveys and find out areas of
dissatisfaction of employees and accordingly advise the management to put in
appropriate measures to check employee attrition.
h. Well-being measures – In the context of acute competition for talented workers, HR
managers have to advise the management to put in place well-being measures like
subsidised canteens, fitness studios, housing quarters, congenial work environment,
creche, recreation facilities, health check up on to keep them from being headhunted
by competitors besides recommending compensation and perquisites on par with
industry leaders.
i. Counselling and mentoring – Arrange for counselling and mentoring employees of
merged entities in times of mergers and acquisitions.
j. Cross exposing and cross training employees – Employees are supposed to be master
of one but jack of all in the contemporary environment. HR managers have to cross
expose and cross train the contemporary workforce so that they become multi-skilled.
k. Work home – Arrange for facilities for employees who work from home and advise
the top management of legal implications of the telecommuting arrangement.
 Challenges of Human Resource Management – Faced in Retail Industry:
Recruitment, Training & Development, Compensation and a Few More
The Indian retail industry has been growing at a tremendous rate with numerous new
players entering the market. The industry currently accounts for 8% of the
employment and is estimated to be the fifth largest globally. The saturation of retail
segment in a few western countries has spurred the growth of the Indian retail sector.
The retail sector is welcome in India with a huge population comprising the youth
segment with disposable incomes and the tendency to spend.
The changing lifestyle and shopping patterns of Indians, mostly in urban areas, make
them welcome the convenience of one-stop shopping. The retail industry has come up
with a large number of employment opportunities. According to Assocham, the retail
market is set to more than double its present size in 2010.
The major challenges in the retail industry are that of:
1. Recruitment
2. Training and Development
3. Compensation
4. Attrition
5. Retention.
Some of the challenges are inter-related, like increased attrition inadvertently means
reduced retention and appraisal is directly related to compensation. Hence, we will be
emphasizing only on attrition, recruitment, job poaching, and training and
development.
Challenge # 1. Recruitment:
People get attracted to job opportunities when they know the career growth attached
to the profile, the brand name (The Company name) or the compensation package.
The major problem with Retail companies is that they do not plan the career growth of
the selected employees.
Hence, the prospective candidates feel a career in Retail is only being on floor in the
store or in the store management, which is more like working in a Kirana Store. The
only difference is they have better infrastructure. Hence, prospective candidates are
not attracted to retail job opportunities.
i. Retail is not a good paymaster compared to other industries in the market. There is
no enthusiasm for the right candidate to apply.
ii. Retail industry is at a growing stage and therefore, employment structure has not
been clearly defined. That is proper job descriptions are not available. There is a high
level of mismatch in employees’ qualifications and calibre with the jobs they do.
Hence, job analysis is an important challenge in the retail industry.
iii. The Indian education system does not provide any specialization in the retail
marketing. Recently, courses have come up regarding Retail diploma, but people are
not aware of these courses as they have not been advertised properly. Hence, retail
companies should take up the responsibility of advertising the career opportunities.
When an employee joins the company, he/she should be provided with rigorous
training on all the aspects of retail management, which at present, many companies
fail to do. E.g. – Pantaloons Retail encourages their staff to take up further education in
retail management. For training, PRIL had a strategic tie up with 13 leading B-schools
across India.
Retailer Association of India is also offering Retail Management Program with different
B-schools in India. Many universities have now started graduate programs in retail
management.
Challenge # 2. Training & Development:
With the growing pace of retailing in India, the rate of growth of retail malls and
markets may have even exceeded the population growth. However, keeping up with
the pace of retail growth, no such development in the growth of training facilities for
prospective retail employees has taken place. This poses the biggest challenge for the
human resource management department of any retail organization.
Retailers’ Initiative in Training & Development:
New developments are always taking place in the retail scenario. With the growth in
retail, the consumers are maturing by each passing day. With such dynamic changes in
this field, the employees of any retail store ought to learn and train themselves to
meet the new challenges. This is one of the most important profiles of any HR
department.
Training and development can take place in various ways. An organization may like to
give on-the-job training to the fresh incumbent. Whereas, the seniors may be sent for
some advanced training to back up the vast experience, which they already have.
Retailers are now emphasizing the career path in their organizations through strong
human resources initiatives. Department store Lifestyle, for instance, recommends its
top employees for transfers to its parent organization, the Dubai-based Landmark
group. Such incentives help in motivating their staff to work for better prospects.
Lateral movements within the chain are a popular way of combating boredom among
employees, a common reason for quitting.
Shoppers’ Stop’s strategies are a mix of the old and new. The retail chain claims to pay
salaries that are 20-25 per cent higher than what its rivals offer and also invests heavily
in training its employees (up to 52 hours of training per employee per year). It claims
to fill more than 65 per cent of its vacancies through internal promotions and linking
these to sales. (Earlier, a 5 per cent increment was given across the board.)
On an average, salaries have gone up by 9 per cent as a result. Employees are
encouraged to study further, and Shoppers’ Stop picks up their tab for professional
courses. The retail chain has also tied up with City and Guilds, a major British awarding
body, to administer certification program in retail selling for its employees. So far, 45
Shoppers’ Stop associates have been awarded certificates.
Challenge # 3. Compensation & Benefits:
The HR department of any retail business needs to have policy guidelines regarding
compensation and miscellaneous benefits to be given to the employees. For this, the
HR department needs to know similar policies and guidelines in similar organizations.
Benchmarking is very essential so far as compensation and benefits are concerned.
Compensation and benefits at any point of time are the best way to satisfy the
employees at the lower and middle level of management.
The retail industry offers much lower compensation. The average pay for floor
operations in entry-level salary ranges from Rs. 3,000 to 8,000. After undergoing
training in customer service and acquiring soft skills, employees tend to look out for
jobs with better remunerations.
Challenge # 4. Attrition:
Today, there is a constant war for talent in the retail sector. It is not actually the First
Mover, who is going to have an advantage but the Fast Mover. Both the employers and
employees are trying to move fast. Major attrition is due to retirement, death, and
resignations. But today, there is a phenomenal increase in resignations.
The Indian retail sector is suffering from very high annual attrition rates. It is today
around 50%, which is very high when compared to other sectors. Low salaries,
inadequate training, and bad work conditions are the primary reasons for the high rate
of attrition in retail. Attrition is the highest for entry-level, front-end staff – 80 per cent
– but tapers off as you climb higher – 10-12 per cent for managers.
Mobility reduces as employees grow senior and settle both into the company and
personally, with families and so on. Typically, youngsters join the retail industry at
lower salaries, get some much-needed experience and then, move on to better jobs or
back to school.
Following are the few reasons, which are usually cited for increased attrition rates in
the Retail Sector:
a. Career Path:
Lack of career growth prospects has been one of the major reasons for attrition in the
retail sector. There is not much difference in the job profiles at various levels in the
retail sector. There is not a satisfactory progression for a person who joins at the entry
level and aspires to grow to the higher-level position.
b. Flexible Working Hours:
Most of the firms in the retail sector have long working hours when compared to
flexible timings offered by various other sectors.
c. Monotony:
Jobs in the retail sector are usually considered quite monotonous. There is no learning
curve which develops for any individual over a period of work span. These jobs give
little scope for creativity, to learn new things, or experiment with new ideas.
d. Working Conditions:
Retail firms lack adequate facilities for employees, such as restrooms, and pick-up and
drop services for employees working late. Considering that they also employ a large
number of women employees, it becomes imperative to provide such basic facilities.
e. Work Pressure:
Subordinate-superior relations play a vital role in retaining employees. The pressure
from superiors to meet targets and the lack of compatibility, between subordinates
and superiors, also lead to attrition.
f. Job Poaching:
The retail industry is facing a shortage of middle management level professionals.
Major retailers are hiring aggressively from similar and smaller organizations by
offering better packages. They are creating various levels of management and are on a
hiring spree.
Some of the areas such as technology, supply chain, distribution, logistics, marketing,
product development and research are becoming very critical for the success of the
organizations. All of these would lead to the recruitment of highly professional people
who specialize in these fields.
g. Job Hopping:
No doubt, job hop has become the latest trend today or a shortcut to success, but one
cannot jump from one job to another as and when it strikes one’s imagination.
Although two or more jobs on a resume no longer are an employment risk, but too
many jobs in less than two years’ time portrays one as a chronic job hopper. The future
employers, who are probably looking for a long term employee, might not be
impressed with the job hopping tendencies.
Challenge # 5. Retention:
In terms of retaining staff, again few companies have a defined strategy for doing so.
Companies tend to believe that the same factors as the ones that attract talented
employees will help to keep them. Holiday entitlement, flexible working and benefits
options emerge as increasingly influential, while financial benefits and management
and career development are seen as less important.
As the retail industry continues to grow, employee retention is likely to remain a
challenge. The way forward is to ensure that the workplace is made more enjoyable
for all employees.
i. Reward the Best Performers:
Appreciating and rewarding the best-performing employees act as great motivational
tools to retain employees.
ii. Model Career Plan:
Planning career progressions of all performing employees can serve as an effective tool
to retain employees, as it provides them an opportunity to strive to reach higher levels
in the organization. Most of the reputed organizations have appropriate HR policies in
this regard.
iii. Rotate Jobs:
Job rotation for an operations manager can happen in the following manner. The
Manager Operations can rotate to different sections in the same store. E.g. – G.M.,
Electronics and Furniture, Food Bazaar, Apparels, Ware house, C.R.M., Category, etc.
Another way of job rotating the Manager Operations can be to rotate to different
stores in the same city, or even to another city.
Way forward

 Applicant tracking system. Tools that aid with the recruitment process include
social recruiting, interview scheduling, a database for storing applicant
information, candidate tracking, and metrics like cost per hire. Some products
include features like the ability to perform background checks. And AI
capability is becoming more and more interwoven into this process.
 Onboarding. While easy to overlook, the onboarding phase is a critical part of
developing a strong relationship with new hires. The features here ensure they
have a smooth experience — digital forms that support e-signature, automatic
placement in required training courses, and welcome materials, to name a few.

 Learning management system (LMS). This allows you to oversee training

programs that equip new hires with critical job skills and certifications. It’s also
helpful for providing career development and continuous
learning opportunities. LMS features include assessments, content libraries,
third-party courses, social learning, gamification elements and learning paths.

 Analytics. Hard data is one of the most essential pieces of any HR strategy. To

that end, HRIS solutions let you analyse a range of KPIs through visual tools
such as dashboards and charts. Training courses completed, headcounts, top
performers, budget forecasts and payroll summaries are a few sample metrics
you can track.

Questions :

1. What are the Trends of Human Resource Management for effective HRIS ?
2. Challenges of HRM at different level management ?

THANK YOU !!!