CHALLENGES IN HUMAN RESOURCE

MANAGEMENT

Bhatia classifies challenges in HRM under three categories:

• Challenges at organizational level,

• Challenges at workplace level, and

• Challenges at HRM department level.

At the Organizational Level

The organizational level challenges include:

(a) integration of human resource plans with corporate plans,

(b) task of motivating executives in view of reduced promotional

opportunities,

(c) wage settlement and executive salaries,

(d) integration of change techniques,

(e) task of keeping the organization young and productive,

(f) task of keeping industrial relations movement from conflict to

cooperation, and

(g) development of an organization’s culture.

(a) Integration of HR Planning with Corporate Plans. There is a challenge

relating to integration of human resource planning with the strategic plans of
the organization. Here, efforts may be made to forecast the human resources
required to implement the plans of the entire organization 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 effectuate human resource planning.
Theintegration of training and development objectives and strategies with
the corporate plans represents a major challenge to improve organizational
performance.

(b) Motivating Executives. The second challenge involves the task of

motivating executives in an increasingly stringent environment in view of
declining promotional opportunities. There is a trend towards executive
salary compression in organizational settings as a result of levelling
pressures.

Although efforts by labour unions have helped improve condition of wages at

the worker level, the salaries of managerial personnel remain nearly the
same. Moreover, technological changes have caused reduction in
hierarchical levels, further reducing the promotional opportunities.

These 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 executives, efforts may be made to redesign the job as a
motivational measure by providing alternate job experience or lateral
movement. Other motivational measures include indirect compensation or
benefits, recognition of the workers’ personal worth and treatment in
adignified way.

(c) Wage Settlements and Executive Salaries. 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 Enterprises (BPE) issues guidelines to regulate negotiations
in public enterprises which does not remain unknown to even trade unions.
For example, if the BPE allows 10 per cent raise, the trade unions seek to
coax further increase from the management. Moreover, the negotiations on
wages in the joint committee of each public enterprise assume a national
character. For example, in 1983, it was the steel industry which gave the
lead in finalizing the agreement, and soon other industries followed. Thus,a
very hard core bargaining on wage settlement is obtained mostly at one
industry or enterprise level, while others simply adopt the same with or
without minor improvements. This practice nullifiesthe benefits of
industrybased bargaining and an organization’s capacity to pay for its
productivity level. Again, a flat increase in wages for all categories of workers
arrived at during the negotiation dilutes the wage differentials, causing
grievances among executives. Likewise, the increasing differences in the DA
rates for public sector executives and central government officers causes
dissatisfaction among the former.

(d) Integration of Change Techniques. There is a challenge relating to the

integration of various change techniques in HRM. An effort may be made to
focus on strategiesto improve organizational effectivenessthrough improved
labour-management relations, increased productivity and product quality,
improved stability of workforce and enhanced readiness of the company to
deal with change. 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. The
typical change techniques relate to organizational development, job
redesign, problemsolving groups, i.e., ‘quality circles,’ autonomous work
teams, business teams (for product development), greenfield plants
(establishment of a new

work culture from the very outset using self-managed teams), productivity
sharing plans, joint participation, management development and supportive
practices. These techniques are used in combination rather than in isolation
and their effective implementation depends upon varied factorsincluding the
top management support, the willingness of the middle management and a
sense of security among rank and file workers.

(e) Maintaining a Young and Productive Organization. There is a challenging

task of maintaining a young and productive organization. Here, efforts may
be made to take into account the emerging dimension related to the
imbalanced age structure of the human resources in the future. This
necessitates adherence to a designed strategy for renewal of manpower in a
phased manner. The future age distribution of workforce can be assessed
using a “manpower renewal forecast model”. Based on this diagnosis of
potential manpower problems, young blood may be inducted into the
workforce where imbalanced age composition is likely to occur.

(f) Keeping IR from Conflict to Cooperation. There is a baffling challenge

relating to the movement of industrial relations from conflict to cooperation.
The present industrial relations situation in India is marked by multiplicity of
unions giving rise to insurmountable barriers in the process of baptism and
collective bargaining. It has become very difficult for the management
toascertain the ‘right’ representative among their employees. The unions
tend to make irrational and false promises and adopt erratic and violent
measures to compete with their rivals. Indeed, inter-union rivalry stemming
from political group has caused violent clashes designed by outside leaders.

This problem can be resolved by evolving a system of recognition of trade

unions. It may be pointed out that all major public sector undertakings have
devised a system of bipartite committee which, after the finalization of wage
settlements, tends to deal with varied problems, such as production target,
productivity, quality, safety, quality of work life and unhealthy restrictive
practices. In conjunction with the above measures, an attempt may be made
to accomplish industrial harmony through workers’ participation which has
vast potential for the integration of workers with the organization. However,
the practice of this concept must start from the top and percolate downwards
to supervisors. The secret to harmonious industrial relations rests with the
improved interpersonal interaction based on trust and confidence between
workers and the management.

(g) Developing Organizational Culture. There remains to be accomplished a

challenging task of developing an organizational culture where members
have values conducive to organizational growth, innovation and
effectiveness.

There has been a continuous debate over the virtues and difficulties of the
changing corporate culture. HR managers here play a major role in evolving
a new organizational culture conducive to excellence and helping people to
adapt it.

At the Workplace Level

Bhatia further identifies five challenges at workplace level for human

resource managers. These include:

(a) task of adapting the workplace to rapid technological changes,

(b) problem of nonperformers and managerial competence development,

(c) problem of grievance management,

(d) emergence of socio-psychological needs, and

(e) HRM as a growing concern for all managers.

(a) Adaptation of Technological Changes. There is a challenging task of

adapting workplace to rapid technological changes which influence the
nature of work and generate obsolescence. Accordingly, the human resource
managers will be required to perform the following tasks:

(i) Maintain human resource competence through training and development

programmers,

(ii) ensure a fit between technology and people for its optimal utilization
through job design,

(iii) arrange alternative careers through training of employees displaced by

technology,
 (iv) update the new entrants to the workforce with the technology used at
the job through a closer relationship between business and educational
institutions, and (v) increase the productivity of non-manufacturing jobs.

(b) Problem of Non-performers and Managerial Competence Development.

There is a problem of ineffective manpower and competence development of

executives to utilize it. Efforts may be made to develop concern for tackling
ineffective manpower and adapt a constructive approach to it. The measures
to tackle it include:

(i) identification of problematic employees,

(ii) analysis of factors responsible for their ineffectiveness, and (iii) use of
constructive approach to rehabilitate them. The task of utilizing the
nonperformers necessitates development of competence among executives
to assist the unutilized workforce by understanding its strengths and
weaknesses, providing feedback on its performance and using counselling to
revitalize it.

(c) Management of Grievances. Management of grievances represents a

baffling challenge. Frequently, representatives of workers in the shop
councilor in the plant level joint council tend to voice workers’ grievances
which remain unresolved. Indeed, redressal of grievances as soon as they
arise is essential for handling industrial complaints as well as preventing
varied human relations problems, namely, low morale, employee unrest,
indiscipline, patchy, lack of commitment, alienations and allied restraining
behavioral manifestations.

(d) Emergence of 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 fulfilment of socio-psychological needs of people. Specifically, the
following areas will be the focus of attention of HR managers:

(i) creation of a congenial human relations climate conducive to improved

communication with employees,

(ii) optimal utilization of a majority of average workers through their training

and participation in management problems and processes rather than
excellent ones,

(iii) utilization of the large reserve of energy available with the younger
executives for constructive purposes,
(iv) harnessing employee creativity,

(v) establishment of a Reacting Participative Base (RPB) to supplement the

formal joint bodies set up by the organization (the RPB involves a small
group of workers from a specific work area which tends to solve particular
problems related to them), and

(vi) prevention of a demoralizing effect on newcomers by assigning them

responsible work.

(e) HRM as a Growing Concern for Managers. There is a challenge relating to

improving the effectiveness of managers in the process of HRM. All
executives have to develop concern for different personnel and industrial
relations functions such as appraisals, rewards, punishments, promotions,
selections, training and development, discipline, and dealing with unions. At
HRM Department Level

As Bhatia observes, there are five challenges at the human resource

management department level:

(a) process-orientation,

(b) a concern with strategy and proactive approach,

(c) research-orientation,

(d) developing HR policies, and

(e) strengthening a matrix personnel department organization.

(a) Process-Orientation. There must be a focus on process-orientation

involving development of less formal processes which the line executives can
use in managing people effectively.

(b) Concern with Strategy and Proactive Approach. There must be a concern
to develop human resource strategies in line with organizational 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. Thus, anticipation of problem areas by
environmental diagnosis is a very crucial strategy.

(c) Research-Orientation. The challenge relating to research-orientation

involves audit of current practices and manpower utilization,
experimentation of innovative ideas, evaluation of personnel programmes
and computerisation of manpower information system for enhancing quality
and efficiency.

(d) Developing HR Policies. The challenge for developing personnel policies

may involve improvement of human resource systemsto fulfil growth and
development needs of people, formulation of policies to meet the
organization’s internal requirements, and long-term perspective and
maintenance of consistency and firmness in implementation and
interpretation of these policies.

(e) A Matrix Organization. There is a challenge relating to reinforcement of a

matrix organization of personnel department at plant level. This challenge
can be met by:

(i) working closely with the line executives,

(ii) seeking to hand over the personnel function to the line executives
through persuasion and education and adopt a consultative role,

(iii) evolving a participative approach in developing personnel policies, and

(iv) maintaining a high level of reputation of integrity and ability