HR Challenges in the Modern Era

HR Challenges in the Modern Era
*Aswini Sudheer
*Asst. Professor, Dept of Management Studies, Vedavyasa Institute of Technology, Malappuram
Abstract
In the current economic scenario, Productivity, Innovation and Efficiency are the main
determinants for the growth of an organization. To achieve these determinants organizations
should focus on the most important resource,”the human resource”. There are various challenges
the organizations are facing and the challenges pertaining to Human Resource are given wider
attention as an organization cannot sustain or survive if it overlooks the challenges faced by its
workforce. In this paper we deal with various HR challenges in the modern era and steps to
prevail over these challenges.
Introduction
Organizations must sail through the hardships of a complex global economy, and position
themselves to attract and retain the workers they will need on this journey, firms will face several
challenges from both the future workforce and from the changing nature of work itself. As a
result, HR managers will need to get ahead of the match by understanding these major future
demographic, technological and societal shifts, and then preparing themselves accordingly.
Varying demographic changes across the developed and developing world will place greater
pressure on both the government and private sector to initiate and implement creative solutions
to educate, integrate and retain a rapidly changing and diverse working population.
Main HR Challenges
The rapidly transforming business landscape means that there are currently many HR
management challenges which will continue to evolve for years to come. The major challenges
are People management, Change management, Leadership Development, HR effectiveness
measurement, Retaining and Engaging a changing workforce, Government regulation,
Technological changes, Employee Relations, Compensation and Benefits, Performance
Management and Environmental issues. Overcoming these challenges with determined solutions
holds the key for the growth of an organization.

People Management
Organizations across the globe have always had to manage a multigenerational workforce.
While that is true, India’s demographics are creating some unique challenges. Even as the world
is graying, India is getting younger. By 2020, the average Indian will be only 29 years of age
compared with 37 in China and the U.S., 45 in Western Europe and 48 in Japan. Currently, more
than half of India’s population is less than 25 years of age. Diversity and inclusion have
been steadily gaining attraction in corporate India in recent years. Much of this is
centered on people management, and companies are beginning to realize the
business imperative of hiring efficiently and creating an equitable work
environment. Therefore the need to build skills and competencies, and freedom
and empowerment are the topmost priorities for the organizations followed by
recognition and appreciation to effectively manage people.
Change Management
Change Management is cited as the foremost issue as HR continues to attempt to help
business move forward. In this dynamic and fast changing environment, change management
skills are paramount if we wish to succeed. The need for employees to make decisions and act
quickly within the parameters of their jobs increases as customer demands the need for a flexible
workplace increase; hence an intensified focus on training is needed to develop added
competencies to deal with change management.
Leadership Development
Being one of the biggest challenges for human resource management,leadership
development needs to be a critical strategic initiative.HR professionals are faced with being
expected to provide the essential structures, processes and tools to make the best selection and
develop the future leaders of the organization.Leadership development has been identified as
critical strategic initiative in ensuring the right employees are retained and managers are well
equipped to take on leadership roles of the future so that organization is viable in the long term.
HR Effectiveness Measurement