Contemporary Issues in

Human Resource
Management
Faculty of Business Management

Lecturer : Ashika U A
CHAPTER 5
HRM Challenges
In this chapter…
• Challenges in development of local talent and skills
• Scarcity in technical skills and expertise among locals
• Issue of fewer locals in the top management of tourist hotels
• Issues in increase of expatriate labour force
• Motivational issues of locals in the tourism sector
• Motivational issues of locals in private sector
• Issues related job security in private sector
• Issues related to job security in public sector (civil service)
• Issues in education system with regards to job market
• Issues in secondary school graduates who seek jobs
 Machine
can’t replace

Management
function HRM Resources

Corporate
Success
 Globalisation

Legal System Technology

Challenges of HRM

Economic
Climate HRM Change

Cost
HRD
Reduction

Market
Reaction
Globalisation
• Issues such as culture, legal and business practice differences.
• Therefore;
• Perform his duties in a foreign country;

• Understanding of foreign work practice and culture;

• Compensate fairly and suitably across different geographical

areas and different costs of living.
Challenges in technology
• From manual employees to knowledgeable employees
• Provide up-to-date information to aid human resource
management department in forecasting, overseeing and making
decisions.
• Change the method of information gathering on employment;
speed up the processing of information and increase internal and
external communication process.
Managing Change
• Change in HRM means total quality programmes, down sizing,
re-engineering, out sourcing and mergers.
• Changes can happen reactively or proactively:
• A reactive change is due to external influences.

• A proactive change is the manager’s initiative to grab

opportunities available, especially in a fast changing industry,
such as the technology industry.
HRD
• An organisation needs to strategise to ensure its resources
are:
• Knowledgeable;

• Skillful; and

• Experienced.

• Identify, recruit and select quality candidates.

• Training programmes
• Employee’s career development opportunities.
• A continuous learning process and employee development
Market reaction
• Approaches often used
to respond to the
market are:
• implementing a total
quality management
programme; and
• Re-engineering process.
Cost reduction
• Organisations will have
to rearrange their firms
to reduce labour costs
through activities such
as:
• Down sizing;

• Out sourcing; and

• Mergers.
 Economic climate

Human
Economic Financial Business
Resource
Environment Standing Strategy
Planning
HRM Issues
Diversity

Career and Age

Family Distribution

Attitude
Changes HRM Gender
Distribution

Personal Education
Issues Level

Employee
Rights
HRM Issues
Issue Details
Diversity in the give a distinct effect on an organization and makes it a
work force socially responsible company
Employee age An unbalanced employee age distribution in the labour
distribution market will complicate HRM processes.
Women and dual One party's career change will affect the other party's
income families career, most working women have toddlers and they need
specific services
Increase in Highly educated employees often have high hopes on
education level employment and opt for careers that are challenging and
interesting.
Employee rights A number of rules and laws have been enacted to ensure
the rights of employees
Personal issues from employees and their employers
HRM Issues…cont
Issue Details
Attitude change value lifestyle satisfaction, employees are also more
towards work attracted to interesting jobs,
Balance between Less over time, more family…
career and family
 Challenges for growth

Diversity

Geography/Society

HR Practices
and Models
1.1. The trend in expats
• Sizable outward
remittance
• Crowding out local
labour
• State expenses such as
expat services and
subsidies
Motivational issues in tourism industry
 Why not private sector?

• Insecurity
• Efficiency advocated
• Less bureaucratic
• Rules and regulation
implementation
• Sense of contribution
to society
 Why not public sector?

• Pay
• Limited career
growth
• Not challenging
• Dynamics
Education System

• Increase
Accessibility
• Commercial
System
• Academic vs Skills
• Pride
Job Seeker
• Qualification don’t
buy you experience
• When are you
graduating
• Pride
• Willingness to
still learn
Thank You