What Is Hrm? What Are Some of the Major Challenges to Hrm in Today’s Market and How Does the Management Respond to Those Challenges?

Topics: Human resource management, Environment, Management Pages: 9 (2814 words) Published: July 2, 2012
Executive Summary
In this report, the issue of what is Human Resource Management (HRM), HRM challenges and the methods its respond to those challenges, learning organization and the ways HRM use learning organization to focus on continuous improvement in organization are emphasized. After reading this report, you will able to understand what HRM is. From the research, the major challenges to HRM today’s market is arise from the internal and external environment. The internal environmental factors include the management and corporate culture of the organization whereas external environmental factor consists of political-legal (P), economical (E), sociocultural (S), and technological (T) environment. The ways HRM respond to those challenges are briefly describe in the contents behind.

Learning Organization refer to those organizations that continue to improve and never end up with research. HRM can use The Network Organization, Total Quality Management (TQM), Management by Objective (MBO), 360 Appraisal System, Performance Ranking Method, Corporate Social Responsibility (CSR), and Six Sigma Approach to focus on Continuous Improvement in organization.

IntroductionDefining Human Resource Management (HRM)

As we know, an organization needs a group of people who work together to achieve common goals. From here, we figure out that the concept of organizations cannot be separated from the need for people or cannot exist without people. HRM is the utilization of individuals to achieve organizational objectives. (R.Wayne Mondy, 2010) It is the development and implementation of systems in an organization for attracting, developing and retaining a high-performing workforce. The purpose of HRM is to ensure that the people employed by the organization are being used as efficiently and effectively as possible and that they are able to continue towards achieving the organizations goals. (Maimunah Aminuddin, 2008)

Major challenges to HRM in today’s market and the ways management respond to it.

The major challenges to HRM today’s market is mainly arise from the external and internal environmental factors. The external environment consists of everything outside an organization’s boundaries that might affect it. The HR manager must have a complete and accurate understanding of the external environment and strive to operate and complete within it or their organizations will not survive or facing a lots of problems.

External environmental factors are primarily arise from the PEST analysis which consists of political-legal (P), economical (E), sociocultural (S), and technological (T) environment.

Political-legal environment reflects the relationship between business and government and it is important for several reasons. The legal system defines and regulates many aspects of what an organization can and can’t do, including advertising practices, safety and health considerations and so on. (Ronald J. Ebert, 2009)Not to forget, the political stability is also an important issue. The HR manager must ensure the company complies with all the rules and regulations stated by the specific country’s government and keep updated.

For instance, in Malaysia, the HR manager must ensure the company obeys the Employment Act 1995, Industrial Relations Act 1967, Employees’ Social Security (general) Regulations 1971(SOCSO), Occupational Safety and Health (OSHA) Act 1970, Employees Provident Fund(EPF) Act 1991 and Pension Act 1980. The challenges here are that the government’s policies and regulations are being amended time by time. Sometimes the amended policies will even cost larger expenses to the company. Hence, the HR manager must aware and find a solution respond to it. For example, Spritzer Berhad had comply with the Employment Act 1995 by providing its employees training programs, annual leave, medical leaves, EPF, SOCSO and the notice period for termination of contract. In the case of political instability, the company invests in...
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