Challenges Of Human Resource Management (HRM) & How To Overcome It?

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Challenges Of Human Resource Management (HRM)

The fluctuations of the economy lead to rapid changes that directly affect the Human Resource. Such issues that affect human resources are commonly known as challenges of Human Resource Management (HRM).

Some of the challenges of HRM which affects the management system of Human Resource are discussed below:

Scarcity amidst plenty

The availability of human talent is limited so there is a cutthroat competition among companies to appoint skill and efficient personnel. So, it becomes a great challenge due to scarcity of human resources.

Handling divorce workforce

Generally people come from different age, gender, range, education, background, location etc. So it becomes a great challenge for HR managers to carry on various activities effectively by maintaining proper co-operation.

Leadership development

Another biggest challenge of HRM is leadership development. It creates obstacles for HR professionals to provide selection and indirectly helps develop future leaders of the organisation.

Creating Work Culture

Another challenge of HR Management is the creation of the work culture that arises from the country. Therefore the HR Manager has to develop a sound work-culture for the success of the organisation.


It refers to plant elimination of jobs that reduces the number of employees working in the organisation. It creates challenges for HR professionals to manage the reaction of employees arising from downsizing.

Management of Human Capital

The management of human capital is also considered as another important challenge for HR professionals. It refers to the skill, knowledge & capability of an individual working in an organisation.

So, HR professionals should be careful at the time of requirement, training, and development of Human Capital.

Productivity Enhancement

Productive enhancement is low, becoming a big issue for the business and human resources profession in the world. It includes motivation, job envisement, promotion, reward and team workers.

Issue Of Human Dignity

The issue of human dignity has its special importance in the 21st century. Therefore the HR manager has to understand the impact of internal feelings of the employee. So their dignity can not be affected.

Managing Cost

Managing cost is considered as another challenge of HRM that means the HR professionals should be cost efficient and take responsibility to reduce control cost of work to a great extent.

Complete Management

The complete misunderstanding is always present among employer and employee so it becomes a great challenge for HR professionals to settle disputes and develop sound relations between employer and employee without hurting their feelings.

Strategy Formulation

HRM is also responsible for the development and implementation of strategy in the organisation. Therefore it becomes a challenge for HR professionals to formulate organisational strategy like mission, goals, objectives, action plan etc for organisation.

Retaining Talent

Human Resource is considered as the most valuable asset for an organisation. Therefore it becomes a great challenge for the HR professionals to retain talented, skillful employees in the organisation for a long period of time.

How to Overcome Challenges Of Human Resource Management (HRM)

Proper HR Planning

The proper HR Planning enables us to know the current and future requirements of human resources in an organisation. So it helps HR Managers to take steps accordingly and counter the problem or challenges forced on Human Resource Management of an organisation.

Effective HR Policies

The HR policies is defined as a document that includes a company mission statement which contains goals, conditions of employment, dress code etc. It enables HR managers to know how to work and remove all the challenges arising in organisations regarding HRM.

Effective Leadership & Supervision

Leadership refers to the power of a leader to induce subordinate words with zeal and confidence whereas supervision refers to overseeing the work of subordinates.

So effective leadership and supervision is very much essential that enables an organisation to overcome the challenges of HRM.

Effective Motivation

Motivation can be defined as an inner and invisible power that encourages work force for better performance. So the HR manager has to prepare a motivational statergy to create and maintain the spirit of belongingness among employees in order to remove HRM challenges.

Effective Training & Education

The effective training and education is defined as the effective transmission of various information to workers, supervisors, government etc about organisation. It is very much helpful in the countering of challenges faced by HR professionals.

Creating better & peaceful environment

The creation of better and peaceful work and environment is considered as another tool that removes challenges faced by HR professionals. It also reduces the labour turnover and encourages the present employees or workers to trust on each other insolvency amongst others.

Assistance to the workforce

The workforce assistance programmes are considered as helpful to removing the challenges faced by HR professionals. It helps a company to provide financial help to its employees in order to enable them to overcome their social and financial needs.

Effective Coordination

The effective Coordination is very much helpful to avoid confusion at work place at all levels of organisation such removal of confusion enables HR professionals to counter the challenges faced on Human Resource Management (HRM).

Increasing the Knowledge and Capacity of Workforce

The challenges of HRM can also be removed by increasing the Knowledge skill and capabilities of the workforce. So, HR professionals must organise various training and awareness programmes at regular intervals in order to ensure equitable enhancement of the workforce.

Kindness & Consideration

The last but not the least method of countering the challenges of HRM is kindness and consideration towards handling the workforce. It is mainly concerned with dealing with people working with organisms. So, kindness is most important in the behaviour of employees in various challenges of HRM.

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