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Issues Faced By Human Resource Management

Paper Type: Free Essay Subject: Business
Wordcount: 1966 words Published: 1st Jan 2015

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Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers.

Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.

Human Resource Management is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization’s goals and objectives.

Human Resource Management is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways.

Research in the area of HRM has much to contribute to the organizational practice of HRM. For the last 20 years, empirical work has paid particular attention to the link between the practice of HRM and organizational performance, evident in improved employee commitment, lower levels of absenteeism and turnover, higher levels of skills and therefore higher productivity, enhanced quality and efficiency. This area of work is sometimes referred to as ‘Strategic HRM’ or SHRM.


Human resources management involves several processes. Together they are supposed to achieve the above mentioned goal. These processes can be performed in an HR department, but some tasks can also be outsourced or performed by line-managers or other departments. When effectively integrated they provide significant economic benefit to the company.[15]

Workforce planning

Recruitment (sometimes separated into attraction and selection)

Induction, Orientation and On boarding

Skills management

Training and development

Personnel administration

Compensation in wage or salary

Time management

Employee benefits administration

Personnel cost planning

Performance appraisal

Labor relations

Organizations may have their line and staff functions in place, but without clear HR policies, all efforts would be like taking potshots in the dark.

Every employee of the organization is an important cog in the wheel. If one follows the right recruitment practices, each employee can become an asset for his/her organization.

The role of HR is thus an intricate web of hiring, recruiting, training, promoting, and mentoring. It also involves unpleasant activities like performance appraisal, layoffs, and employee disciplining. Since human resource management has everything to do with people related issues, HR professionals also conduct behavioral assessment, leadership development, talent management, and knowledge management.

As businesses evolve, the dynamics of HR also changed. Yesterday’s HR mantra focused on management concepts that focused on process improvement and elimination of management wastes. Kaizen, Six Sigma, and other Total Quality Management (TQM) tools were the buzzwords of the twentieth century business world.

Today, the focus has shifted from refining business processes to outsourcing business processes, thereby making organizations leaner and more flexible. Even as we speak, businesses are constantly redefining and re-evaluating management models. To be able to fit into the new-age management world, HR has to also revisit its founding principles and chart a new way forward.


A leader must always act with self-confidence should avoid anger and crabbiness and deal with his subordinates with calm and proper understanding.

There are some basic key points for a person to become a leader are listed below:

* Prevent becoming emotionally involved.

*Motivate others to get the work done.

* Look at things objectively and from others view point

*Understanding things by human behavior

* Talk and write clearly and forcefully.

* Must have teaching ability to inspire and develop subordinates

*Must have technical knowledge for giving necessary guidance to subordinates

*Understand people their preferences and weakness and making him

a approachable person.

One who takes care of HRM Department need to be more active, lively and the must posses the quality of Leadership? There has been a recent explosion of books about new concepts in leadership and supervision, such as “New Millennium” leadership and “New Paradigm” leadership. In our experience over the years, leaders and supervisors rarely struggle because they don’t understand such advanced concepts. Rather, they struggle because they haven’t mastered the fundamentals, those most critical, basic structures and processes of leadership and supervision in their organizations. This guide will help you to master those fundamentals.

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There is an adage that states that, in systems such as organizations, “structures determine behaviors that determine events”. Too often, we focus only on the events and the behaviors and we fail to see the larger structures, so our efforts to develop more effective leadership often fail. Too many leadership development programs focus primarily on assessing leadership styles and then cultivating personal development — they forget that, for leadership to really be effective, the organization has to have the structures in place to really support effective leadership in the first place. This guide shows you how to implement those structures in your organization.

The guide is one of the few that takes a solid, plan-based, systems-based view of leadership and supervision. It helps organizations to ensure a smooth transition to a professionally managed organization.


The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding the staffing needs of an organization and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can’t yet afford part- or full-time help. However, they should always ensure that employees have-and are aware of-personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have.

Note that some people distinguish a difference between HRM (a major management activity) and HRD (Human Resource Development, a profession). Those people might include HRM in HRD, explaining that HRD includes the broader range of activities to develop personnel inside of organizations, including, e.g., career development, training, organization development, etc.

There is a long-standing argument about where HR-related functions should be organized into large organizations, e.g., “should HR be in the Organization Development department or the other way around?”


To retain good staff and to encourage them to give of their best while at work requires attention to the financial and psychological and even physiological rewards offered by the organization as a continuous exercise.

Basic financial rewards and conditions of service (e.g. working hours per week) are determined externally (by national bargaining or government minimum wage legislation) in many occupations but as much as 50 per cent of the gross pay of manual workers is often the result of local negotiations and details (e.g. which particular hours shall be worked) of conditions of service are often more important than the basics. Hence there is scope for financial and other motivations to be used at local levels.

Staffing needs will vary with the productivity of the workforce (and the industrial peace achieved) so good personnel policies are desirable. The latter can depend upon other factors (like environment, welfare, employee benefits, etc.) but unless the wage packet is accepted as ‘fair and just’ there will be no motivation.

Hence while the technicalities of payment and other systems may be the concern of others, the outcome of them is a matter of great concern to human resource management.

Increasingly the influences of behavioral science discoveries are becoming important not merely because of the widely-acknowledged limitations of money as a motivator, but because of the changing mix and nature of tasks (e.g. more service and professional jobs and far fewer unskilled and repetitive production jobs).

Better-educated, mobile and multi-skilled employees much more likely to be in demand and to be influenced by things like job satisfaction, involvement, participation, etc. than the economically dependent employees of yesteryear.

Hence human resource management must act as a source of information about and a source of inspiration for the application of the findings of behavioral science. It may be a matter of drawing the attention of senior managers to what is being achieved elsewhere and the gradual education of middle managers to new points of view on job design, work organization and worker autonomy. Employee’s motivation comes out of true leaders.


Leadership is the art of directing a group of people to act with efficiency, effectiveness and efficacy to attain a positive goal.

The ability of directing a group towards the achievement of goals or end state

Leadership is the art of getting people to do things

Leadership is the art of influencing the fellow men to willingly work for a common objective

The challenge of leadership has always been to provide coherence, structure and, ultimately, meaning in times of great change and dislocation.








Decision Making




Sense of Humor






Team Building



With an effective leadership along with a true care, the HRM function and HRD profession have undergone major changes over the past 20-30 years. Many years ago, large organizations looked to the “Personnel Department,” mostly to manage the paperwork around hiring and paying people. More recently, organizations consider the “HR Department” as playing an important role in staffing, training and helping to manage people so that people and the organization are performing at maximum capability in a highly fulfilling manner. When a person has sound knowledge and becomes skillful he will be ready to lead the organization as a leader. There is nothing like that you have be destined to become a leader.


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