Challenges in Strategic Human Resource Management - Assignment Example

 Environmental, Organizational, And Individual Challenges Is Most Important For Human Resource Management In The Company TABLE OF CONTENTS Introduction ……………………………………………………………………………3 Human Resource Management Strategy ………………………………………………..5 Challenges in Strategic Human Resource Management ………………………………...6 Environmental, Organizational and Individual Challenges In Company’s Context ………………………………………………………9 Environmental/External Challenges or Factors …………………………………………11 Conclusion ………………………………………………………………………………20 References ………………………………………………………………………………22 INTRODUCTION The role of the Human Resource Management (HRM) is evolving with the change in external or competitive market environment; Human Resource Management must play a strategic role in the success of an organization (Harris, 1999). Organizations must put emphasis on their external environment, their organizational environment as well as their individuals or employees in the organization. In order to succeed, HR must be a business driven function with a thorough understanding of the organization’s environment and culture and be able to influence their decisions and policies focusing on strategic personnel support and talent development among individuals. The management of an organization will also promote and fight for values, ethics and beliefs within their organizations, especially in the management of workplace diversity. Managers of an organization should meet their challenges that how to motivate employees through sharing of ideas and views and using of information system through proper planning, organizing, leading and controlling their human resources. The success of any organizations lies on the ability to manage a diversion of talent that can bring innovative ideas, perspectives and views to the work. The challenges and problems is a part of any organization, but the thing is, how company deals with those challenges and problems. How they resolve and achieve these issues effectively. Mixture of talents of diverse cultural backgrounds, genders, ages and lifestyles, an organization can respond to business opportunities more rapidly and creatively, which must be one of the important organizational goals to be attained or achievable (Cox, 1993). More importantly, if the organizational environment does not support its talented individuals or diversified culture, it will give chance to the competitor to get advantage from this resource. HR managers have to endure cultural-based Human Resource Management training to its employees or individuals to motivate a group of professionals that are highly qualified but culturally diverse. In many ways, the effectiveness of workplace diversity management is dependent on the skilful balancing or justice of the HR manager. Environmental, organizational and individual challenges are important factors in any organization but company should know the tactics and an effective strategy to cope with these challenges (Michael Poole, 1999). These factors places their positive as well as negative impact on organization because these factors are vital part of any company, it also helps in the future success of the organization. Environmental challenges in terms of competitors as well as other external or changing environment, organizational within the organization and individual means employees of the organization. HUMAN RESOURCE MANAGMNET (HRM) STRATEGY Due to the rapid and continuous change in organizations and its environment, it becomes necessary to develop more focused and cohesive approach to managing people or individuals in an organization. In today’s fast pace environment, businesses require a marketing or information technology strategy; most importantly the business requires a human resource or people strategy. In developing an effective strategy two points must be addressed. What kind of people need to manage and run business to meet strategic business objectives? What people or employee’s schemes or programs and initiatives must be designed and implemented to attract, develop and retain or hold staff to compete effectively? To answer these questions, four key points of an organization must be followed. These are: Culture: the beliefs, values, norms and management style of the organization. Organization: the structure, job roles, employee’s performance, workplace etc. People: the skill levels, staff potential and management capability. Human resources systems: the people focused on that, How to deliver the strategy effectively, employee and selection, communications, training, rewards, career development, etc. If managers deals and manages these points effectively, it will lead to the great success of an organization. There are also other seven steps to developing a human resource strategy which are: 1. Understanding of business or HR strategy. 2. Develop mission statement that relates people or employee of an organization. 3. Conduct a SWOT analysis of the organization. 4. Conduct a HRM analysis. 5. Focusing on critical people issues. 6. Develop effective solutions. 7. Implementation and evaluation of the plan or strategy. CHALLENGES IN STRATEGIC HUMAN RESOURCE MANAGEMENT Strategic human resources management approach is all about integration and adaptation. It ensures that: Human resources (HR) management is fully integrated with the strategy and the strategic needs of the firm. HR practices are adjusted, accepted, and used by managers and employees as part of their everyday work in organization. Strategic HR Practices and Activities: The following are six practices that are consistently considered strategic HR practices. 1. Internal career opportunity. 2. employees training systems 3. Appraisal or evaluation process. 4. Profit sharing. 5. Employment security and safety. 6. Job definition. If an organization follows these points effectively, it supports their business in a good way, every individual needs to improve its career and wants to avail good career opportunities. If organization provides these opportunities to its employee, it will lead to great motivation and encouragement in employees. Employees’ training system is also important; appraisal and evaluation process plays vital role in empowerment and encouragement to employees and it also places impact on their performance in workplace. Employee’s security, profit sharing and describing job effectively are important factors well. Nowadays companies are involving the human resources department in developing and implementing both business and people strategies to make their business effective and successful. Companies should also emphasize on leadership development, Recruiting high-quality employees and Employee retention. Challenges in strategic human resource are increasing as well. These are: Employment security. Selection and recruitment process. High wages or salary. Incentive based payment. Employee information sharing. Participation and empowerment Timely promotion and Loyalty through motivation. Managing shift swapping or job rotation Managing workplace flexibility. To deal with these challenges, companies should consider and follow these dimensions mentioned below: Developing a long-term HR plan to ensure arrangement of HR strategies or objectives Creating centralized communication and reporting relationships. Employee’s Assessment, development, and compensation practices in organization. Creating policies and processes for data management, performance management, Compensation, appraisal, and development. Effective and fair evaluation or appraisal process. Empowerment and encouragement schemes for the employee to enhance their loyalty and motivation level. Job rotation in such a way that, employees will enjoy their jobs. ENVIRONMENTAL, ORGANIZATIONAL AND INDIVIDUAL CHALLENGES IN COMPANY’S CONTEXT PCWW Company: PCCW Limited (PCCW) is the holding company of HKT Group Holdings Limited, Hong Kong's premier telecommunications provider and a world-class player in Information and Communications Technologies (ICT). PCCW also holds a majority interest in Pacific Century Premium Developments Limited, as well as overseas investments which include the wholly-owned UK Broadband Limited. The Group employs more than 16,000 staff, is headquartered in Hong Kong and maintains a presence in Europe, the Middle East, Africa, the Americas, mainland China and other parts of Asia. Environmental Challenges in a Company: The environmental challenges is a continuous process, it affects businesses as well as people of the society. Environmental issues are combined with social, cultural and socioeconomic issues (Mehrotra, 2000). In fact, social and cultural concerns may far compensate all other factors to make critical decisions regarding environmental issues. As companies become more global to expand into new and innovative markets, they face expected as well as unexpected environmental and safety challenges. People or employees in an organization face several environmental issues and these issues also known to be an external issues occurring in our environment. These challenges include the conflict of cultural norms and expectations, diversion in culture, religion, and language and so on (Mead, 1998). These factors may affect the environment by different ways and several clashes may occur because of these issues. Differences in culture and way of living, places it’s various impacts on environment and it also put some effect on business culture as well. While working or performing any job in an organization, people also face several environmental issues in relation to their workplace and business. Competitors are also including as external environmental issue. Practices and performances of HR should be followed properly and also according to the competitors. Environmental challenges or problems are those factors which exist outside of the organization. Some factors lies internally as well but they are known as strengths and weakness of an organization but environment considers being an external factor. Environmental factors are uncontrollable for any organization, because sometimes they are really in favor of the company and sometimes not. Environment places both positive and negative impacts on business environment. ENVIRONMENTAL/EXTERNAL CHALLENGES OR FACTORS: According to any company, but here I am taking PCCW (Hong Kong Company) following environmental challenges are faced by the companies or any organization: Social factors: People, customers and their way of looking to the product or service, purchasing power, how customer’s feels about the product or services all is included in social factors. These factors are also changing according to the trends and people’s choice. Demographic factors: It is related to the population, movement, growth rate, death rate, age, gender, culture, religon, lifestyle of people in a society and so on. Economic factors: It relates to economic or purchasing power of an individual. Economic condition also affects the people of the society and if there inflation occurs, it has an impact on manufacturing, purchasing power and cost as well. Political factors: Government decisions and law and order are included in this. In business environment these decision should be followed effectively and for better productivity of any firm. Legal framework: Legal frame is also known as government policies, number of rules and regulation under which a business organization runs or operate. Government rules and regulation is also moved and changed according to the exchanging in environment. Competitors: Competition must be considered as an important factor in external environment, it’s a strong point in running any business. In any business we should keep an eye on our competitors, their moves and their practices should be in consideration. Market conditions: Market condition is always changing according to the environmental conditions i.e. share markets, selling and purchasing markets, manufacturing markets and so on. Markets are becoming huge and large nowadays, so the external and environmental changes have several impacts on that which will increase other environmental challenges for business organizations. Technical or technological conditions: Technical issues may include energy saving problems, tariff and quota issues used in different countries. Technology is a very strong and important factor in any business environment because it always changes with the environment as well external factors. New and innovative technology brings several changes and innovations in today’s business environment. Physical factors: These factors may remain static in some conditions and organization planning and organizing may depend on these factors. Sometimes these factors are dynamic, because if one factor is changing due to the change of environment, it’s not necessary the other factor will also be changed. For e.g. market conditions is changing due to the external factors but legal framework will not be changed due to change in market conditions, so some factors will be static and some are dynamic. Physical factors may also include infrastructure i.e. telephone lines, roads and so on. Organizational Challenges in a Company: HR departments are evolving in every organization and in every country of the world as well. From an HRM perspective, company’s or organization’s focus is now on a strategic future where talented HR professionals look at improving the work environment and plan out human resource needs for the employees of an organization (Damm-Luhr, 1984). Organizational challenges will occur within the organization and top magmnagent and HR professionals should resolve those issues in an effective manner. Following are the five major challenges that an organization faces in terms of human resources and human resource management. Knowledge Workers: Here an organization is looking at different kinds of people who do not obey the principles of management for the group. It also belongs to the higher educational qualifications of the employees, giving and taking responsibilities at a lesser age, gaining and sharing experiences, high bargaining power due to the knowledge and skills in hand, high demand for the knowledge workers, and so on. These may be in terms of organization career commitment to individual career management and development. Managing these activities and performances of people may be essential for the growth of an organization. Technological Challenges: In every field organizations are getting more and more technologically oriented; organizations are preparing their employees and workforce to accept technological changes and environment as a major challenge. We have seen many organizations and sectors involving innovative technologies and using it effectively in their businesses like banking sectors advertising and so on. It is a huge challenge to bring new and innovative technology acceptance all levels in organizations and also to understanding of technology by employees and people in the organization. Competence of HR Managers: It is an acceptable truth that huge success of an organization depends on the human power of any company which includes, selecting and recruiting the best, managing the best and retaining the best, motivating and encouraging and so on. Lack of competency of HR managers in understanding the business needs and demands places a negative impact on their business. Competent top management always helps in the success as well as helping and supporting employees in a good and respected way. So, there is now a need to bring competent HR professionals who are expert and strong in HR management practices with strong business knowledge. Building or developing Leadership: Leadership means influencing followers whether its employees or people in such way, that they will respect your decision and also follow your decision. A leader should also respect their follower’s decision and will take them along with him/her. Though leadership decision will be taken on the basis of traits and certain qualities at an organizational level, it is more based on knowledge of the person. The challenge is also to develop individual’s performance potential on the basis of past record and knowledge, competencies, expertise and so on. Choosing a best business leader for an organization is a difficult challenge for everyone but it can be done through by an effective process of HR. Managing people and resolving issues: Research has clearly shown that, the success of any organization is heavily dependent on managing the people issues and finding the best solution for those issues and problems. HR plays a vital role here and its policies and practices will help management to resolve issues by providing best solution. This is also a big challenge for any organization to mange employees in such way, that they will be satisfied and they get the solution to their problems in a timely manner. These challenges are becoming increasing day by day because of increasing of new markets, continuous change of external environment, changing style of operating business and so on. To cope with these challenges, HR strategies and policies should be followed in a proper way. Individual Challenges in a Company: Individual challenges are those challenges in which person should perform any activity or function by its own without any help from the team or workgroup. A person has some goals and objectives to achieve given by the organization and an employee should accomplish those tasks effectively and efficiently to meet their required or desired challenges. Individuals often experience business organizations as strange or hard structures that can give rise to health problems, conflicts among employees and within the organization. Organization should perform as a network of personal relationships focused on caring and trust. In any organization, an individual has to face several issues and challenges, but it’s the competency of the person that how can he/she accept those challenges and fight to complete challenges or tasks. An individual may face following challenges in an organization: Diversion of curture, people from different culture, religion, and language and so on may not accept an individual from different religion or culture. Understanding the job clearly in an organization without any support or help from colleagues in the organization. Lack of appreciation and encouragement from management. Less salary or wage as compare to work done effectively. Promotion criteria in organization. Co-workers and colleagues: how to deal and make strong relationship with them. These are the some issues or challenges which an individual faces while performing job in an organization and this is my personal experience as well. To overcome these issues following points can be used as an effective tool: Appreciation to motivate an individual and make him/her understand that he/she is performing well and his/her work is appreciable. Motivation and encouragement is a powerful tool for making an individual more productive and more loyal. Salary should be given according to the country’s or today’s economic conditions. Promotion is also very important for an individual; he/she expected from their top management that if they are performing well, they should deserve timely promotion. Differences among, people or colleagues should be minimize, that will help to meet an individual challenges effectively. CONCLUSION According to Paul Sparrow & Cary L. Cooper (2003) in human resource management, mangers should understand the needs of the changing organization environment. Successful organizations are becoming more adaptable, elastic, quick to change, and customer-oriented. Within this environment, the HR professionals must learn and they should know how to manage organization environment effectively through planning, organizing, leading and controlling the human resource. Also learn about the emerging and demanding trends in training and employee’s development. Improving quality, performance and productivity of the company by using quality management, innovative technology, reorganization and other techniques; improving employees or people skills; managing workforce diversity and so on. Organizations are becoming more heterogeneous in terms of gender, competition, and ethnicity; Managers and employees must become capable of working with people from different cultures and from different religion. Encouraging or empowering individuals in an organization by reshaping of the relationship between managers and employees or individuals should also be done. While working in an organization, an individual faces several challenges including many factors in it; environment places its positive and negative impact on an individual as well, a person should be enough competent and strong to deal with these challenges and effect of the external as well as internal environment of an organization. Human resource policies and practices are certainly vital to improve competitiveness and empower employees for different tasks and assignments. To achieve success in marketplace, the challenge of all businesses is to understand corporate cultural differences and human resources strategies effectively. Issues to be resolved to meet the challenges efficiently may include staffing policies, selecting and retaining talented employees, training and development, encouraging employees ,minimizing culture barriers, and legal framework. Other issues include understanding the challenges of people in the organization, performance appraisals, rewards, compensation packages, and labor relations. Addressing these issues is a necessary step towards facing the challenges effectively and also to meet these challenges to make organization more productive. REFERENCES: 1. Michael Zanko, Matt Ngui: 2003, the handbook of human resource management policies and practices, Published by Edward Elgar Publishing. 2. Michael Poole: 1999, Human Resource Management: Critical Perspectives on Business and Management, Published by Routledge. 3. 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