An Examination on the Challenges in Human Resource Management

Abstract

Human Resource Management (HRM) refers to the formal systems established for managing people within an organization. The role of a human resource manager encompasses three key areas: staffing, employee compensation and benefits, and the definition/design of work. The primary goal of HRM is to enhance organizational productivity by optimizing the effectiveness of its workforce. This objective is expected to remain fundamentally unchanged, despite the dynamic nature of the business environment. As noted by Edward L. Gubman in the Journal of Business Strategy, the fundamental mission of human resources involves acquiring, developing, and retaining talent; aligning the workforce with the business; and contributing significantly to overall business success. These challenges are considered enduring. Human Resource Management poses particular challenges for small businesses, often lacking a dedicated HR department. Small enterprises may have only one HR person or still assign this responsibility to the CEO. Regardless, understanding these challenges is crucial for small business owners to be prepared for addressing HR issues as their company and workforce expand. This paper aims to explore HRM challenges, propose strategies to overcome them, and shed light on emerging HRM challenges