CHALLENGES OF MODERN HUMAN RESOURCE MANAGEMENT

The practice of human resource management is being constrained by

many problems caused by constant changes that are occurring both
within and without the firm.

There is need to understand these changes and devise appropriate

response mechanisms. If this does not happen, then the firm may not
survive and achieve its objectives.
 
CHALLENGES OF MODERN HUMAN
RESOURCE MANAGEMENT

• For easier understanding, the challenges can be categorized into

politico-legal, economic, socio-cultural, and technological constraints.
(PESTEL)
CHALLENGES OF MODERN
HUMAN RESOURCE
MANAGEMENT
1. POLITICAL CHALLENGES

• In many countries decisions of politicians through the parliament have a great impact
on the activities of the human resource managers. e.g. government withdrawal of
trading licenses, government reducing or eliminating certain taxes or regulatory
barriers, powerful politicians may also influence hiring and promotion decisions,
government offering tax incentives, government entering into trade agreements with
other nations. Government laws regarding employees (minimum wage)
 CHALLENGES OF MODERN HUMAN RESOURCE
MANAGEMENT

2. ECONOMIC CHALLENGES

Price level changes have led to inflation leading to high prices of many
raw materials and even the finished goods and services. The price of oil
and other fuel supplies deserves a mention because many firms use
petroleum related products in the production of their goods or in the
delivery of their services. Increases in taxes cannot be ignored.
 CHALLENGES OF MODERN HUMAN RESOURCE
MANAGEMENT
3. SOCIO-CULTURAL CHANGES
There are many social changes that are taking place and which are affecting human
resource practices. These changes include the following:
I. Labour market changes
• Mass education of employees on both full time and part time
• The need to reorganize and redesign jobs according to qualifications
• The increase in the number of female employees
• Professionals are typically less inclined to join labour unions, but they have greater
expectations in terms of individual treatment by management.
• More and more tasks formerly performed by unskilled labourers have been taken
over by machines.
 CHALLENGES OF MODERN HUMAN RESOURCE
MANAGEMENT

11. Change in the values of the workforce

• In the past most workers had a set of values generally characterised by the
term "work ethic". Work was regarded as having a spiritual meaning, and it
was emphasized by such behavioural norms as punctuality, honest,
diligence, and frugality. Employees took their jobs very seriously.
 
• Perhaps one of the most relevant work redesigning strategy is the use of
flexible working arrangements. These include the flexible working day
(flexitime), compressed workweek and the flexible working year (flexi year).
 
CHALLENGES OF MODERN HUMAN RESOURCE
MANAGEMENT

• Job sharing occurs when two or more employees working on a part-

time basis divide the work, time and pay among themselves. This
arrangement may be suitable for employees who have family
commitments or older employees who may regard part-time work as
a compromise between full-time work and retirement. Some
organizations are critical of job sharing because it is more expensive
to run and harder to manage. Difficulties can arise if one employee
leaves or wishes to work full time.
CHALLENGES OF MODERN HUMAN RESOURCE
MANAGEMENT

111. Changing Expectations of Employees

Modern employees have greater expectations from their employers.
Through working, they expect to buy good homes, cars, food, and
clothing. They also expect to make enough money to educate their
children in excellent schools and to buy luxurious goods.

Employees are also resisting the traditional master - servant

relationships that simplified the relationship between the employer and
the employees. Instead, employees want to contribute in decisions that
affect them.
 CHALLENGES OF MODERN HUMAN RESOURCE
MANAGEMENT

1V. Changing Levels of Productivity

In many countries, the human resource manager is faced with the
acute problem of declining productivity. Productivity is the output per
employee. The reasons for this decline in productivity include various
government regulations which have added to the cost of doing business
without enhancing productivity in the short run, such as laws relating
to environmental protection, health and safety, affirmative action and
so on.
CHALLENGES OF MODERN HUMAN RESOURCE
MANAGEMENT

V. Epidemics
Modern employees are exposed to a wide range of epidemics which
include HIV/ AIDS, Ebola, etc. These epidemics often affect many
people and results to numerous losses of life. The end result is fewer
workers and the loss of valuable skills which take a long time period to
develop.
 CHALLENGES OF MODERN HUMAN RESOURCE
MANAGEMENT

V1. Regional Conflicts

These are also a major challenge especially in third world countries.
Political disagreements often result to conflicts, loss of life, and the
displacement of numerous other people.

V11. Natural Disasters

These include floods, droughts, earthquakes, and mudslides among
others. Examples are Tsunami, and Katrina. These natural disasters
often lead to massive loss of lives and property.
 CHALLENGES OF MODERN HUMAN RESOURCE
MANAGEMENT

V111.Leaner Workforce
The human resource manager is faced with the challenge of having to
maintain a leaner workforce in an effort to cut costs. The result is an
overburdened workforce which is prone to stress and burnout.

1X. Discrimination
It is difficult to get rid of all forms of discrimination in the workplace.
The human resource manager often has an uphill task trying to
eliminate discrimination based on tribe, race, gender, religion etc
 CHALLENGES OF MODERN HUMAN RESOURCE
MANAGEMENT

4. TECHNOLOGICAL CHANGES
Rapid changes in technology are forcing organizations to spend more
on acquiring the technologies and on training the workers on the use of
these technologies.
Human resource managers may need to seriously consider the effects
of the latest technological developments in existing systems as well as
the additional training that may be required. External experts may be
needed to introduce new technologies and to train the existing staff.
And the technology may need to be kept updated regularly.