Human resource management is very important to all organizations. It is the expansion and execution of systems in a company to attract, and maintain high-performing employees. There are four major challenges in today’s market which are political action and regulatory changes, economic forces, social forces and technological factor. These factors do affect the market throughout the worldwide. The management responds to those challenges by complying with the rules and regulations set by the government. For economy, they should have proper planning and budgeting. For social factor is to having diversity training for the employees as many workers come from different cultures, race and regions. Last is by conducting IT training for those who are weak. Learning organization is one company that obtains knowledge and rapid in thinking of new ideas for innovations. Human resource management used Quality Control Circles by forming a small group to discuss the work-related problems. For example, provide training for employees through brainstorming. They also used Total Quality Management that concentrate to the total performance.
Human resource management or in short form called HRM means the part of the management which is the process of managing issues associated to people in an organization using a controlled and systematic approach. It is also to provide direction for them to build up and maintain a high-performing workforce. In other words, HRM is a strategic approach that uses different tools means to bring people and organizations together so that the strategic needs of the organization’s business can be achieved. The examples of the tools includes focusing on hiring of new employees, health and safety, benefits, training, performance management and many others as well to the employees. Some of the major challenges to HRM in today’s market are political action and regulatory changes, economic forces, social forces and technological factor. Political environment is the laws and regulations that were created by government that will influence the way the business operate. It concerns about what the organization can do or cannot do. An organization must comply with the rules and regulation that involve HRM. The laws in our country also concentrate on the problems such as sexual harassment and discrimination during the employments which are inappropriate and unethical. Besides that, the company must take care of employees’ welfare that has been mentioned under the employment laws. For example, Employees Social Security Act 1969 (ESSA) must be provided to employees which is a protection to all employees and their dependants. Employee Provident Fund Act 1951 in addition is a provision of financial security after retirement through a compulsory saving scheme while Occupational Safety & Health 1994 (OSHA) are important to the safety and welfare of employees. All of these must be provided even though some companies are in tight budgets especially for the small developing companies. For the Nokia Company, they believe that by following country’s laws, standards and practices, are important to the employment practices and the accomplishment of the business internationally. The second challenge to HRM is economic forces which mean the economy’s direction that the company operates. It has impact on business operation and decision making. If the economy is unstable, for example during the financial crisis in year 2008 has resulted an increased unemployment rate. Due to the policy towards unemployment, some governments in the world has invoked companies to offer the minimum wage to workers which employers have no choice but to obey. Employees on the other hand will openly accept due to difficulty in securing jobs. During such crisis, the management may have proper planning and also budgeting. Any organizations that work with appropriate planning and budget tend to be more successful. For example...
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