HR Challenges

The environment faced by human resource is challenging one; changes are occurring rapidly across a wide range of issues. Clearly HR departments are evolving in our country. From an administrative perspective, the focus is now on a strategic outlook where talent HR professionals look at improving the work environment and plan out human resource needs. Though it is a reflection of what is happening in the western context, the Indian work force and industrial climate is changing. It appears that the most prevalent challenges facing HR

management are as follows: 1. 2. 3. 4. Economic and technological change Workforce availability ad quality concerns Demographics and diversity issues Organizational restructuring

1. Economic and technological change: Several economic changes have occurred that have altered employment and occupational paterns in India. A major shift change is the shift of jobs from manufacturing and agriculture to service industries. The example of computerization of banking industries which forced many to quit they refused to change to technological change. The explosive growth of information technology particularly that linked to the internet, has forced many change throughout organizations of all types.

Occupational shifts: The increase in the technology jobs is due to the rapid increase in the use of information technology, such as databases, system design and analysis, and desktop publishing. The software development and export which is growing base of Indian software industry has been acting towards occupational change. Global Competition: One major factor affecting these shifts is the globalization of economic forces. Globalization has brought more sophistication to process and skills which lacking in Indian workforce.

2. Workforce availability and Quality concerns: Indias education system is facing stiff challenge to meet demands of industry players, as jobs requiring advance knowledge and skills are on rise from sectors like Information technology, Animation, Bio-technology. Indian education system falling deaf ears to industry players requirement, resisting change which made literate considered being unemployable by industry. Various subject of importance in education system are not updated and inducted in the education syllabus. The need of the hour is a dialogue between Industry players and education system to bring their problem on the table, as growing demand for knowledge and skill based labor is fuelling the pressure on the skilled labor market.

3. Demographics India is still facing threat of migration of workers from backward areas to metropolitan cities which is leading to overcrowded metro city, lack of government equal region development policy has definitely not working. But what human resource has to do with demographics, human resource has to plan development of workers from backward areas which will reduce cost and provide them opportunity, HR has to place plan to management of putting facility in backward areas. 4. Organizational restructuring Many organizations have restructured in the past few years in order to become more competitive. Also, mergers and acquisitions of firms in the same industries have been made to ensure global competitiveness As part of the organizational changes, many organizations have right sized either by (1) eliminating layers of managers, (2) closing facilities, (3) merging with other organizations, or (4) outpacing workers. A common transformation has been to flatten organizations by removing several layers of management and to improve productivity, quality, and service while also reducing costs. As a result, jobs are redesigned and people affected. One of the challenges that HR management faces with organizational restructuring is dealing with the human consequences of change. The human cost associated with downsizing has been much discussed in the popular press: a survivors mentality for those who remain, unfulfilled cost savings estimates, loss of loyalty, and many people looking for new jobs.

5 HR Challenges for Indian Organizations

Managing Knowledge Workers Essentially, here we are looking at different kind of people who does not obey the principles of management for the traditional group. This boils down to higher educational qualifications, taking up responsibilities at a lesser age and experience, high bargaining power due to the knowledge and skills in hand, high demand for the knowledge workers, and techno suaveness. The clear shift is seen in terms of organization career commitment to individualized career management. Managing this set of people is essential for the growth of any industry but especially the IT, BPOs and other knowledge based sectors. Managing Technological Challenges In every arena organizations are getting more and more technologically oriented. Though it is not in the main run after the initial debates, preparing the work force to accept technological changes is a major challenge. We have seen sectors like banking undergoing revolutionary changes enabled by technology. It is a huge challenge to bring in IT and other technology acceptance all levels in organizations.

Competence of HR Managers As it is more and more accepted that lot of success of organizations depend on the human capital, this boils to recruiting the best, managing the best and retaining the best. Clearly HR managers have a role in this process. Often it is discussed about lack of competence of HR managers in understanding the business imperative. There is now a need to develop competent HR professionals who are sound in HR management practices with strong business knowledge. Developing Leadership It is quite interesting to note that there is less importance given to developing leadership at the organizational level. Though leadership is discussed on basis of traits and certain qualities, at an organisational level it is more based on knowledge. The challenge is to develop individuals who have performance potential on basis of past record and knowledge based expertise in to business leaders by imparting them with the necessary "soft skills". Managing Change Business environment in India is volatile. There is boom in terms of opportunities brought forward by globalisation. However this is also leading to many interventions in terms of restructuring, turnaround, mergers, downsizing, etc. Research has clearly shown that the success of these interventions is heavily dependent on managing the people issues in the process. HR has a pivotal role to play here.

Top 5 HR Challenges for 2010

Perceptions of HR Experts found it difficult to rank something so subjective and multilayered, but most agreed that this is an issue HR must address. HR has been one of the most vilified departments in many organisations this year, and its efforts to limit attrition were largely underestimated. Not only does HR have to improve its image in the eyes of employees, it has to strengthen ties with other business departments. HR is still seen as a back-office, transactional and operational function. Some suggest HR outsourcing as an important solution. It enables HR to decrease its administrative burdens and practice a more direct approach to business needs. Others believe leaders should work to give a stronger definition to HR roles in the organisation so they are more aligned with business requirements. Cost control Cost control will be a corporate-wide priority in 2010, but there will be added pressure on HR to manage budgets through process and policy standardisation. HR must consider costefficient solutions in areas such as compensation and benefits and training programmes.

Employee Engagement If there is a lesson to be learned from past recessions, its the erosion of employee commitment in organisations. Cost-cutting measures and other effects from the economic downturn have impacted levels of trust and loyalty in employees. Many are feeling stressed and nervous. The upturn will see some of an organisations best and brightest workers leaving to join competitors if their employers dont take immediate steps to motivate and retain them. If resignations become more frequent, HR must structure its exit interview process to find out why people are leaving, and what it can to do retain current and future employees. Feedback should not just address HRs initiatives - leaders should also be assessed on their roles in motivating employees. Compensation and benefits The economic downturn has changed the way HR approaches compensation and benefits. Adjusting salary and rewards packages will be half the battle for HR professionals in the upcoming year. Finding creative and cost-effective ways of combining tangible and nontangible rewards will also be a major challenge. Talent retention and development This issue makes it to the top of the HR challenges list for a number of reasons. While the global financial crisis helped to retain staff in 2009, employees will be less cautious and more inclined to change jobs during the recovery. Likewise, competitors will once again able to afford to hire and poach. In particular, employees who were more closely scrutinising remuneration and benefits, job security and career advancement prospects in other companies will gladly make the move as hiring freezes are lifted. Proactive HR strategies must be implemented now to retain employees.