Strategic HRM Report: HRM Challenges, Practices, and Strategies

This report provides a comprehensive overview of the strategic human resource management (SHRM) challenges faced by organizations in India. It identifies key issues such as employee turnover, recruitment and selection complexities, training inadequacies, union issues, technological changes, health and safety concerns, employee queries, leadership development gaps, and disciplinary issues. The report delves into the causes and impacts of these challenges, providing real-world examples from Indian companies. Furthermore, it proposes various HR practices and strategies to overcome these hurdles, including motivation theories, fair compensation, effective communication, adherence to equity laws, and employee development programs. The report aims to guide organizations in developing and implementing effective SHRM strategies to improve employee retention, recruitment, and overall organizational performance in the Indian context.

STRATEGIC HRM

Table of Contents
Introduction..........................................................................................................................................3
QUESTION 2.......................................................................................................................................3
A. Explaining the main human resources challenges......................................................................3
B. HR practices and strategies to overcome challenges..................................................................6
Conclusion............................................................................................................................................8
References............................................................................................................................................9

INTRODUCTION
Strategic human resource management is an approach which is helpful in managing all the
employees working in an organization. Further, it also helps in achieving long-term goals and
objectives which the firm desires to achieve. Functions of human resource management are giving
training, recruiting as well as retaining employees (Wood and Kispál-Vitai, 2014). The present file
describes major human resources challenges which are faced by organizations in India. In addition
to this, it also represents solutions to reduce these issues of the firm.
QUESTION 2
A. Explaining the main human resources challenges
Management of Organizations are facing many human resources issues in India. Some of
them are represented below in the paragraph. Employee turnover- It is biggest issue for Indian organizations because employees leaves the
firm very fast in order to get higher income. This reason obliges the staff members to leave
corporations in India. Main cause behind leaving the firm is salary. Generally, many
organizations do not provide effective salaries to trainees in the starting time (Purce, 2014).
In addition to this, enterprise does not provide extra incentive and salary for extra working
hours to their staff members. Due to this reason, they leave present firm in order to take new
job with the desire of higher salary. This reason also creates bad impact on HR operations of
the corporations. In addition to this, it affects efficiency and performance of company in
India. As a result, corporation has to put extra efforts to train new employees which
consume time in accomplishing the task (Jackson, Schuler and Jiang, 2014). For example,
Infosys is software development organization in India. Firm is also facing human resources
issues. Employee turnover of this corporation is greater than other corporation due to its HR
policies. This organisation puts extra work pressure on employees and trainees. Firm does
not provide extra remunerations to staff members. These types of reasons oblige the staff
members to leave the organisations. In India, Every sector like manufacturing, services as
well as hospitality are suffering with HR challenges.
 Recruitment and selection- It is one of the big issue for human resource in the nation. Many
Indian organisations are facing these HR complexities due to higher corruption level as well
as discrimination. Mainly, government corporations are facing these kinds of problem in the
country (Marler and Fisher, 2013). For example during the selection of Steel authority of
India, Human resource managers discriminate the candidates on the basis of religion.
Further, HR challenges affects performance as well as productivity of the company in Indian
market because this type of discrimination does not give employment opportunities to the

skilful applicants. As a result, organisation does not get talented candidates for their
organization India. Then after, management of HR face severe issues regarding allocation of
staff members and their work in the corporation. These issues create adverse impact for
steel authority of India to achieve appropriate income and performance .
 Training- Indian organisations are also facing training related issues which create
complexities for HR division to manage their operations. There are many reasons behind
these issues in nation. Sometimes, companies do not get right employees due to ineffective
HR policies of the government like reservation of candidates in the job according to their
caste (Kaufman, 2012). These rules and regulations create issues to train weak applicants in
government and public organization. In addition to this, cost of trainer is also higher than
other nations. These challenges increase the expenditure of companies in India. They also
create adverse impact on work of the enterprise. In addition to this, due to shortage of
effective institutions, firms are facing HR issues to train candidates. Management of
corporation has to put higher efforts to prepare the workers for the work who consumes time
in accomplishing the project (Buller and McEvoy, 2012). For example, IBM has faced these
types of training issues in order to train their new candidates in India. These issues delay its
operations of HR as well as other divisions in the organisation which directly create bad
impact on its image in the market. Further, organisations can not complete its projects as per
deadline of its client due to HR issues in India.
 Union issues- It is also severe issue for the Indian organisations. Mainly, these types of
issues occur in the manufacturing corporations in India. It can be generated through many
reasons like salaries issues, special demand of workers, accidents of workers as well as
timing of operating hours in the firm (Festing, 2012). In addition to this, these issues also
create severe problem for HR division of any company in nation. There are many Indian
corporations which have faced these union issues. They had badly affected the work and
their image in the market. These types of Union strikes create heavy loss for the
organisation (Marler, 2012). For example, Maruti Suzuki is auto mobile company in India.
This firm also faced union issues in the Gurgaon plant due to termination of main union
leader in the year 2012 (Varman, 2016). This thing generated loss of monetary funds at the
work place. Due to this reasons, organisation faced many HR issues to manage their
employees in India. In 2011, Hindustan Zinc Limited also suffered with these types of
complexities due to severe issues in HR policies. As a result, all Union members go on strike
which produces loss of infrastructure and other properties of company in India.
 Technological- These issues create so many HR challenges for organisations in the nation.

Mainly these problems are generated due to major modifications in technological work like
change in software and working style. So many employees show their resistance against the
technological change. Further, it also affects the working of human resources department in
the organisations. Corporations face many HR issues regarding management of employees.
This process also produces adverse effect on the company in India (Alfes and et.al., 2013).
Many Indian corporations have faced these types of technological issues. For example,
Wipro software organisation has suffered technological complexities during the major
change in working pattern.
 Health and safety issues- Health and safety is major problem for the organisations in India.
Generally, many Indian enterprises do not use proper Health and safety polices of
Government which are made for safety of employees in the firm. These issues create
complexities for HR division to manage their work in the nation (Kehoe and Wright, 2013).
In addition to this, organisation also faces legal complexities in order to follow rules and
regulations regarding health and safety of workers and staff members in India. Whenever
accident or other problems arises, HR department also suffers with many issues in order to
manage employees and legal obligations of the government in India (Renwick, Redman and
Maguire, 2013). For example, Bharat Aluminium Limited organisation also faced health and
safety issues due to severe accident of workers at the work place which created higher
complexities of HR department in India. Further, Indian government applied many legal
obligations and charges on corporation due to violation of Health and safety rule and
regulations in the nation. HR department of Bharat Aluminium Limited faced Legal and
political complexities to manage their business operations in the country.
 Employee’s queries- It is the most common HR issue in the Indian organisations. Mainly,
manufacturing as well as services organisations are facing these types of problem in nation.
Every company faces salary related and other problems which affect its working in the
market. So ,HR manager has to find out these issues to solve these complexities for
managing operations of the company in the nation. Further, these problems require huge
efforts to know the actual situation with employees and other resources. They also create
issues for HR department in the organisation (Gavino, Wayne and Erdogan, 2012). For
example, Larson and Turbo faced employee’s queries issues in India. Human resource
division of firm suffered with many problems to sort out this issue in the nation.
 Leadership Development-It also generates problems for the organisation in India.
Leadership development issue is raised due to lack of strategic skills of Leaders in the
company. It also creates problems for general staff members regarding their work in the

organisation. Due to this reason, employees are not able to complete their work in the right
time. In addition to this, leadership development problem also creates complexities for HR
professionals to manage its activities in the organization. It also produces adverse effect on
efficiency and performance of the enterprise in India (Sheehan, 2013). For example, Small
and medium level organisations faced leadership development issues in the nation.
 Discipline issues- It is also least issue for organisation which is managed by HR
professionals in the India. These problems are raised by the mismanagement of employees
in the organisations. To identify the disciplinary issues, human resource managers need
many evidence and statements of their employees in firm. In addition to this, it also creates
issue for HR professionals to maintain effective environment of the organisation in India
(Armstrong, 2014). For example, Medium level enterprises faces discipline issues due to
lack of knowledge in HR policies and rules to manage staff members.
B. HR practices and strategies to overcome challenges
There are many practices and strategies to overcome employees turnover and recruitment
challenges in organizations.
Strategies and HR practices for reducing employee turnover
Indian organisations can adopt many strategies and practices to overcome employee
turnover issues in India. Corporations should use motivation theories to solve this issue. For
example, enterprise can use cognitive theory to sort out these issues. Cognitive approach also states
that corporation should provide extrinsic and intrinsic motivation to employees for reducing
turnover of staff members (Kim, 2012). In addition to this, management of Human resource should
render effective salary, incentives, bonus, medical and accidental insurance extra remunerations,
increment as well as promotion to employees in the organisation. This concept oblige the staff
members to work for sustainable time in corporations. As a result, enterprise will face less HR
issues as comparison of previous years. Further, human resource department can also provide
intrinsic motivation through conducting sporting activities, management games, giving non
financial rewards as well as showing importance of employees in the organisation. In addition to
this, staff members also respect their seniors and management with help of these strategies in
corporation (Boxall, 2013). Intrinsic motivation obligate the employees to stay in organisation for
long time. These HR practices can reduce the turnover of staff members of which can increase
market growth and image of organization in Indian market.
In addition to this, management of human resource should conduct one to one interaction
with employees to know their queries in the organisation. HR professionals can ask many question
with staff members regarding their performance, work and salaries issues in the firm. This approach

can contribute effective role for human resource department to resolve issue of employees in the
meeting (Beadles and et.al., 2015). As a result, HR department will suffer with less problems as
comparison of past years in India.
Management of organisations should follow the law of equity act as per Indian constitution.
This rules and regulations can also provide satisfaction to stay for sustainable time in the firm. With
help of this policy, corporation can give equal priority to the staff members in India. Management of
HR should provide promotion and increment to staff members on the basis of their skills in nation.
In addition to this, equity law can contribute effective role for HR department to hold the staff
members for long time by using fair policies in the enterprise (Shaw, Park and Kim, 2013). For
example, Tata consultancy services (TCS) also provides two extra salaries and company shares to
employees for reducing its turnover of staff members. With help of these strategies, management of
organisation has reduces their issues as comparison of previous years in the India. Employees of
company provides effective efforts to meet its goal and objectives in the market. Enterprise has
achieved leading position in the software development. Corporation also uses equity law and one to
one interaction method for management of its staff members in India.
Strategies and HR practices for recruitment and selection
There are many strategies which reduce the recruitment and selection issues of HR in the
Indian organisations. corporation should not discriminate the candidates on the basis of age,
religion, sex as well as physical incapabilities in the India (Purce, 2014). This approach can also
contribute effective role for HR Division to recruit effective candidates for firm. It helps the
company to increase the its productivity and performance in the market.
Management of company should select talented, loyal as well as responsible managers for
recruitment and selection of candidates. This process contribute effective role organisations to hire
skilful applicants in nation. This approach can also help the HR professionals to face less problems
in operations of enterprise in India. Otherwise, corporation can get severe loss regarding selection
of employees in nation (Jackson, Schuler and Jiang, 2014). In addition to this, ineffective recruiting
process can also create adverse impact on efficiency and performance of the company in Indian
market.
Organisation should select top institutions of India to select talented candidates. This method
can also contribute effective role for HR professionals to hire skill full applicants in short time. It
can aid to reduce HR challenges in organisation by adopting this strategies in India (Kaufman,
2012). In addition to this, HR manager should also check those skills in candidates which are useful
for organisation. This method can help the management to select perfect applicant. With
contribution of this strategies, organisation can do effective growth and development in the market.

In addition to this, organisations should follow The Legal View Apprentices Act, Equal
Remuneration Act, Regulation of Employment and Conditions of Service Act 1979, factories Act
1948, Employee State Insurance Act as well as Employee State Insurance Act 1948 during selection
and recruitment process. This rule and regulations can give better reliability to avoid the legal
obligations in India. This way, HR department of organisations can reduce its recruitment and
selection issues in nation (Festing, 2012). For example, Hindustan Zinc Limited also follow same
procedure in selection and recruitment of candidates in India. This method contribute effective role
for firm to hire skilful candidates in the country. Further, enterprise has done effective growth and
development with help these strategies in the world. Corporation is also generated effective
revenues and income with aid of effective recruitment and selection approach in the nation.
CONCLUSION
From the report, it is found that turnover of employees of employees, recruitment and
selection, training a well as union issue affect HR operations of organisations in India. In addition to
this, Technological, heath and safety, employees queries, leadership development and disciplinary
issues also create bad impact growth and development of the Indian organisations. It can be
concluded that strategies and HR practices in employee turnover and recruitment and selection
contribute effective role for corporations to reduce its issues in the India. Further, It also help the
Human resource department of organisations to reduce their challenges in the nation.

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