Current Challenges in Human Resource Management

Current Challenges in Human Resource Management

The dynamic and fast nature of the modern era has really complicates the current challenges in human resource management. The most prominent contemporary challenges that should be faced by human resource (HR) managers are related to the increasingly diverse workforce, the extensive use of technology, and the intensifying competition in almost every industry. HR managers are required to have the skill to manage culturally diverse teams consisting of people from a wide variety of backgrounds (Torrington et al., 2020).

Diversity can increase the risk of marginalization and miscommunication between employees which can hinder performance (Davidson, 2021). However, studies have also shown that teams that consist of people with diverse backgrounds are 87% better at decision-making compared to homogenous teams (Stahl, 2021). It is the main challenge for managers to bring the most benefit of diversity and suppress the potential issues that may come with it.

In bigger multinational firms, managers should also deal with political, legal, and economic differences between countries, in addition to cultural differences (Dessler, 2020). These factors bring more uncertainties to the business environment (Sonyucel, 2009), which can complicate managers’ jobs. Due to these uncertainties, long-term planning in HR is becoming less viable. HR strategy is shifted from meticulous planning to flexibility and capacity to adapt to changes as well as seize opportunities quickly (Torrington et al., 2020).

Rapid technological advancement enabled globalization and transformed the HR landscape. Traditional HRM tools are outshined by sophisticated technology, such as artificial intelligence which is now used in various HR functions (Chevalier, 2022). Communication technology fueled the discussions about telecommuting and how employees are increasingly demanding it for their work-life balance. Technology has simplified managers’ work, but it also opened new issues that should be addressed.

The intensifying competition between companies requires managers to retain their best talents while simultaneously putting them in tighter cost control (Torrington et al., 2020). HR managers are increasingly aware of the paradox of how the workforce is increasing exponentially in numbers but their difficulties in recruiting the right people seemed to keep increasing. Research by McKinsey and Co depicted the war on talent in many industries (Merlevedes,  2014). The demand to be more flexible and responsive to change has reduced job security, but managers are required to improve employees’ loyalty and a higher level of discretionary efforts (Torrington et al., 2020).

Globalization, technological advancement, and intensifying competition may cause various problems for managers, but they also bring potential benefits and opportunities. It is the main challenge for managers to understand the intricate, and sometimes delicate, nature of these contemporary issues so that they can draw the most advantages out of the challenges.

The Biggest Personal Strengths and Challenges in Managing People

I think my biggest personal strength is my willingness to listen more to better understand an issue from various points of view. I can be proud of my ability in critical and analytical thinking as well as problem-solving. I rarely feel frustrated by a big challenge and instead, I can take straightforward steps to deeply analyze the challenge and come up with a solution. In a way, I am more of a thinker.

The biggest challenge for me is my deeply introverted nature. I can not easily get along with people in a social situation and it often hinders me from quickly establishing a positive relationship with my coworkers. I tend to take more time to develop a relationship. It may put me in a difficult situation, especially in the current time when all things are somewhat in a race. It can really cripple my ability to face the current challenges in human resource management.