Challenges of Human Resource Management in Borderless World

DOI : 10.17577/IJERTCONV5IS11060

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Challenges of Human Resource Management in Borderless World

Kirti Sachdeva1, Ritika2 Assistant professor, Department of Commerce,

I.B (P.G) COLLEGE, Panipat1, 2

Abstract-The responsibilities of HR manager have gradually become broader and more strategic since the organization realized the importance of HR. The Globalization put together the world as a Global village. The concept of global village resulted in exchange of cultures across the globe as a single country, producing the components in one country, assembling the products in second country, market the product in the third country, the banks in the fourth country to finance the operations, insurance companies in the fifth country to provide insurance facilities, all the countries provide human resources. The global businesses employ the people from various countries and manage the people of multi-cultures and multi-skills.

Issues coming on the radar of an HR Manager today are diverse; from micro level issues where an individual employee needs hand holding to the macro issues pertaining to a global workforce and virtual teams. HR managers are expected to offer instant solutions for these issues and strategies.

As companies move around the world setting up offices, service delivery centers and manufacturing hubs, there will be an even greater movement of people and that is the big challenge while moving forward. Managing diverse workforce is another important problem that HR managers need to tackle. For which cross cultural training is essential. This paper stressed some of the issues pertaining to challenging situations the HR manager is likely to come across.

Key words-: HRM, Role of HRM, Challenges, Role of HRM in current scenario, Future trends in HRM , solutions

Objective of paper-

  • To study the details of emerging challenges in hrm.

  • To find out the various methods and techniques through which HR can overcome the challenges of present business scenario.

Methodology The analysis of this paper is totally depending upon secondary data like journal, books and various website from internet.


    It is strange that the HR function is not much promoted in our country. For decades, the hr activity has remained a staff function as opposed to a line (decision making) function. To be specific the HR department does not enjoy the status of more power equal to that of a production department or a finance department. The trend was to changing now the organizations are putting more power and responsibilities on HR department.

    The world of HRM is changing more rapidly than we can imagine. Constant environmental changes mean that HR managers face constant challenges. They must respond by taking advantage of gradual yet reflective changes in the nature of the field, current practices, and overall human resource management policies, objective, mission and vision.

    As companies move around the world setting up offices, service delivery centers and manufacturing centre, there will be an even greater movement of people and that is the big challenge while moving forward.

    In case of India, IT industry alone has a potential to create about 5 million jobs and by 2016, it will account for about

    50 percent of the total outsourcing pie of about $500 billion. Recent study by Times group figure out 49000 vacancies in retailing, 112000 in manufacturing sector 51000 in service sector by this year. To achieve this, India needs to deal its biggest challenge of ensuring steady flow of employable workforce.

    The HR managers have to adopt proactive strategy which helps them to foresee events and take appropriate actions before the events occur. Proactive strategies call for awareness about the likely challenges the HR managers will face in the days to come.


    Human resource management helps in creating a better understanding between employees and management. It helps workers in accomplishing individual and organizational goal. This approach has been attracting the attention of management professionals in the last decade or so. HRM is considered essential due to the following reason:

    1. Better industrial relations

    2. Develop organizational commitment

    3. Coping with changing environment

    4. Change in political philosophy

    5. Increase pressure on employees

      The objectives of HRM:

      The primary objective of HRM is to ensure a satisfactory accomplishment of the objective of an organization and its employee. While farming the hr objective of the organization, care is taken to consider the interests and needs of the employees and employee goal. This is done by integrating the employees interest and management interest with a view to achive the objectives of the entire organization. The objectives of HRM are:

      Societal objectives

      • HRM should increase employees job satisfaction to the fullest extent.

        Organizational objective

      • HRM should also meet the self actualization needs of the employees.

        Functional objective

      • HRM should develop and maintain a quality of work life. It makes employment in the organization a desirable, personal and social situation.

    Importance of Human Resource Management

    Personnel objective

    Human resources are the valuable assets of the corporate bodies. They are their strength. To face the new challenges on the fronts of knowledge, technology and changing trends in global economy needs effective human resource management. The effectiveness with which human resources are co-ordinate utilized determine the success in achieving organizational objective. Human resource management is important to organizational in number of way

    1. SOCIETAL OBJECTIVE: In this objective includes:

      • To manage human resource in an ethical and socially responsible manner.

      • To ensure compliance with legal and ethical standards.

      • To minimize the negative impact of societal demands upon the organizational

    2. ORGANIZATINAL OBJECTIVE: In this objective includes:

      • HR department like any other department in an organization should focus on achieving the goals of the organization first. If it does not meet this purpose the hr department cannot exist in the long run.

      • Hr department should recognize its role in bringing about organizational effectiveness

      • Hrm is not an end in itself. It is only a means to assist the organization with its primary objective

    3. FUNCTIONAL OBJECTIVE: In this objective includes:

      • To maintain the HRM department contribution at a level appropriate to the organizations needs. Resources are wasted when HRM is either more or less sophisticated to suit the organization demands.

      • The departments level of service must be tailored to fit the organization it serves.

      • HRM should aim at providing the organization with well trained and well motivated employees.

    4. PERSONNEL OBJECTIVE: In this objective includes:

    (a) Important for the organization :

    • Good human resource practice help in attracting and retaining the best people in the organization.

    • In order to make use of latest technology the appointment of right type of person is essential .

    • Human resource planning alerts the organization to the type of people it will need in the short , medium , longS run.

      1. Imortant for the employees :

    • HRM stress on the motivation of employees by providing them various financial and non financial incentives.

    • It stress upon the maximum contribution of employees to achieve organizational goals.

    • It promote team work and team sprit in among employees.

    • It offer excellent growth opportunities to people who have potential to rise.

      1. Important for society:

    • It lead to productivity gain to society.

    • It enables the manager to reduce cost , save scare resource , enchance profits and offer better pay .

    • It provide better working condition to employee

    Role of HRM:

    The purpose of Human Resource Management (HRM) is to hire, train and develop staff and where necessary to discipline or dismiss them. Through effective training and development, employees at Enterprise achieve promotion within the company and reach their full potential.

    This reduces the need for external recruitment and makes maximum use of existing talent. This is a cost-effective way for a business to manage its people.

    The HRM function not only manages existing staff, it also plans for changes that will

    affect its future staffing needs. This is known as workforce planning. For example:

    • the business may grow into new markets, such as Enterprise moving into truck rental

    • it may use new technology which requires new skills

    e.g. global positioning equipment

    staff may retire or be promoted, leaving gaps which need to be filled.

    There may also be external changes in the labour market, meaning that there will be fewer skills available or too many in a particular area. HRM monitors all of these things in planning recruitment strategy. This places the HRM function in a central role in the business because all managers use this expertise to acquire staff.

    Enterprise has a policy of promoting its managers from within its existing workforce. This means the business must recruit people with the potential to grow.

    Each year, Enterprise recruits an average of 1,000 staff into its graduate recruitment programme in the UK and Ireland. To achieve its aims and objectives, Enterprise needs staff who are motivated and who possess initiative and drive.


    Environment is very important variable in the HRM. Organization is greatly influenced by changes taking place in internal as well as external environment. Organizations of 21st century cannot expect to be successful unless they understand their environment and realize how it influences the hr function in the organization. Todays business environment is characterized by continues changes and intense competition. To deal with this environment it is challenge for an organization. There are mainly two types of environment:















    TO conclude it can be said that the study of environment enables HR experts to become proactive in their approach to personnel aspects the HR department have deal with this environment factors ,so that they will easily achieve their organizational goals .


    1. Redesign the vision and mission of the company

      HRM is becoming increasingly involved with strategic planning and the development of means by which people can work proactively toward the achievement of organizational objectives. This means a broader perspective focused on objectives and results. It implies personal

      commitment by each worker to the company's goals. The need for this personal commitment means that employee education, communication, and involvement now become fundamental. This being the case, companies develop and emphasize an HRM philosophy to which top management is deeply committed, and which is clearly articulated and practiced by all employees. HR planning is closely linked with strategic planning, so as to support the company mission and give incentives to support its achievement.

    2. Information & Knowledge

      Information and knowledge have replaced manufacturing as the source of most new jobs.

      Work performed in factories by machines is being replaced by work in offices or at computer terminals. And instead of working with things, people increasingly work with ideas and concepts. The information age made knowledge the most important organizational resource. The traditional factors of production – nature, capital, and labour – have already exhausted their contributions. Now the important activities are the generation, structure, development, spreading, sharing and application of knowledge; belongs to the people, the human capital. Successful companies are becoming learning organizations. Organizational effectiveness will increasingly depend on attracting, utilizing and retaining people who can use their knowledge to solve problems, create services, develop new work processes and satisfy customer needs.

    3. Attracting and retaining employees Talent

      One of the greatest challenges of human resource management now is to create HR Capabilities that increase and sustain organizational performance. The ability to attract and retain talent is a core HR capability that is critical to achieving sustainable business performance. Retaining the employees has become more crucial. One can retain the employees in current situation only when a company creates a good employer brand, internally as well as externally, by ensuring that people have good jobs which make them feel proud of working for the organization. Employees can be given opportunities to make presentations at international forums, or made members of academic institutes or industry associations. Now, IT companies are facing a shortage of knowledge workers because the rate at which they lose employees is almost double the rate at which they hire. A major proportion of the turnover issue is attributed to the movement of manpower to the 'land of opportunities' – USA. The average stay of a software consultant of IT Company has dropped to one year. Compensation has been, and will continue to be, the big driver in retaining people so organization need to re-evaluate the pattern of compensation time to time, This will increase retention.

    4. Empowering Employees

      Empowering is mutual influence; it is the creative distribution of power; it is shared responsibility; it is vital and energetic, and it is inclusive, democratic, and long- lasting. Empowering enables people to use their talents and capabilities, fosters accomplishment, invests in learning, finds the spirit in an organization and builds effective relationships, informs, leads, coaches, serves, creates, and

      liberates. Becoming an empowering manager, therefore, involves both who you are and what you do.

      In an empowering organization, managers should believe leadership derives from all its employees not a select few. Managers of an empowering organization should know that the company is most likely to succeed when employees have the tools, training, and authority to do their best & understand that information is power and they share it with all employees. Managers of an empowering organization should value employees enough to build a culture that values and supports individuals. They crave to make sure that everyone feels an ownership of that culture and a responsibility for its perpetuation to create opportunities for finding solutions and for designing what can be not searching fr problems and what should have been. Lastly the managers understand that fostering empowerment is a continuing effort not an endpoint to be checked off a list of objectives.

    5. Global Workforce

      The biggest challenge the organization around the globe facing is to know the social classes and categories from which the new global workers are recruited, and to understand the systems of education and training that shape them so that they can be made socially and culturally fit to serve customers. Educational institutes are particularly crucial in this context, not only in providing the raw material for the virtual service economy, but also in producing social networks (such as old boys networks) that form an important basis for sociality and upward mobility among the new professional classes. For this we require to redefine the employee status. Talented people will be unwilling to sign on as employees hence companies will have to maintain a fine balance between career planning and free agent ship.

      Go global seems to be a mantra embedded deep in the Indian business mind. IT companies going global in the inorganic way. Indian business has spread its roots to countries as diverse as USA, and Mexico among others. India, too, has seen its share of MNCs coming strategy to set up shop. One of the fallouts of this expansion has been a clash of cultural mindsets and behaviorisms.

    6. Improving the supplementary Services

      In todays competitive world the workforce are heavily loaded with work and stress associated with it i.e. mental stress as well as physical stress. To have a sound body and sound mind it is necessary to develop certain competencies to survive with the stressful situations. The growth of an supplementary industry like computer training institutes, manpower consultants ,soft skills and cultural training

      ,consultants, psychological counselors, spiritual guides, stress and time management trainers, gyms, recreational facilities and health-related services, yoga teachers, suggest that new forms of subjectivity are being produced not only through the work itself, but also through the deliberate shaping of personalities and bodies to be fit for the global Challenges.

    7. Managing Workplace Diversity –

      The future success of any organizations relies on the ability to manage a diverse body of talent that can bring innovative ideas, perspectives and views to their work. The challenge and problems faced of workplace diversity can be turned into a strategic organizational asset if an organization is able to capitalize on this melting pot of diverse talents. With the mixture of talents of diverse cultural backgrounds, genders, ages and lifestyles, an organization can respond to business opportunities more rapidly and creatively, especially in the global arena, which must be one of the important organizational goals to be attained.

      This is especially true for multinational companies (MNCs) who have operations on a global scale and employ people of different countries, ethical and cultural backgrounds. Thus, a HR manager needs to be mindful and may employ a 'Think Global, Act Local' approach in most circumstances. Thus, many local HR managers have to undergo cultural-based Human Resource Management training to further their abilities to motivate a group of professional that are highly qualified but culturally diverse. Furthermore, the HR professional must assure the local professionals that these foreign talents are not a threat to their career advancement. In many ways, the effectiveness of workplace diversity management is dependent on the skilful balancing act of the HR manager.

      One of the main reasons for ineffective workplace diversity management is the predisposition to pigeonhole employees, placing them in a different silo based on their diversity profile. In the real world, diversity cannot be easily categorized and those organizations that respond to human complexity by leveraging the talents of a broad workforce will be the most effective in growing their businesses and their customer base.

    8. Challenges of Mergers & Acquisitions (LPG) – Liberalization, Privatization and Globalization (LPG), is as dangerous as beneficial. Increasing competition has forced the organizations to device ways and means to grow, perform and achieve excellence. Mergers and acquisition are being accepted as one of the most effective techniques to strengthen a companys market position and adopt a new technology to gain competitive advantage over other organizations. The business situation alters day by day. Before one know the ownership of companys changes hands, starting off a wave of uncertainty of acquired company, suddenly the employees starts feeling that their bosses are changed, if not physically, at least attitudinally. Some of them find themselves grave danger of losing their jobs. A general de-motivating feeling perpetrate organization

      The HR professionals have to perform certain activities with set of skills and competencies.

      These are the following :

      1. Creating transition teams, especially those that will:

        • Develop infrastructure for new organization

        • Process and design systems

        • Address cultural issues

        • Provide training

        • managing the activities associated with staffing, in particular, developing and overseeing

        • Selection processes

        • Retention strategies

        • Separation strategies

      2. Managing the learning processes

        • Building learning into the partnership agreement

        • setting up learning-driven career plans

        • using training to stimulate the learning process

      3. Re-casting the HR department itself:

        • Develop new policies and practices consistent with vision of new organization

        • Develop HR structure and staffing

      4. Identifying and embracing new roles for the HR leader, namely,

        • Partnership

        • Change Facilitator

        • Strategy Implementer

        • Strategy Formulator

        • Innovator

      5. Identifying and developing new competencies

      6. Providing input into managing the process of change – HR managers are the change champions providing the change management skills to align the right people with the appropriate knowledge and skills base to meet the shared goals of the enterprise

    9. Managing Cross Cultural Communication in organization –

    "There are hundreds of languages in the world, but a smile speaks them all." Anonymous

    Culture is Software of mind, it is concerned with beliefs and values on the basis of which people interpret experiences and behave, individually and in groups. Cultural statements become operationalised when executives articulate and publish the values of their firm which provide patterns for how employees should behave. Firms with strong cultures achieve higher results because employees sustain focus both on how to do and what to do Managers doing business in other countries should sensitize themselves to the cultures of those nations and avoid making mistakes while performing their work or

    interacting with customers. This is possible by nurturing the corporate culture. For this, greater interdependence in work processes and less stand-alone work should be assigned, since work force today demands greater autonomy in their own work and greater inter-linkage and inter-dependence with the work of others.


    As it stand today the India organization could not have hoped for more. In addition to being strategically positioned on the corporate world map as a low cost, highly skilled destination, the India corporate is emerging as a base for committed, intelligent and a knowledgeable workforce. This has been achieved by the help of a strong foundation provide by the Indian education system at theprimary, secondary, technical and at professional level. It is a undisputed fact that the Indian institute of technology , the national institute of technology and famed India institute of management are among the world class institutions to name a few . Quality education and research are encouraged on these compuses and across the country , which mould and contribute to the practices in Indian organizations.

    HRM in India however is not structurally well researched and hence a lack of theoretical information to track and document its progress.

    Role of HRM in current scenario:

    In 50's and 90's the role of Human Resource Management was more of "Personnel Management", but in the last decade, the Human Resource rolehas changed from Personnel Management to HR Business Partner. HR Business partner is a major link between HR and different business units. Also to succeed in the competitive environment of today and the future, it will take more than market information and trends; which are available. What is most required is work force.

    1. Supporting the business

      The Human Resource function must also adapt to the modern business needs a highly dynamic employee management and planning team that can respond and adapt to the rapidly varying requirements of an organization or market needs. Human Resource should be considered as a strategic, incorporated position that directly influences the business success because Human Resource works so closely with its Human resources the organizations true competitive advantage. By managing present, incoming and leaving employees, Human resource ensures the company always has the right people for the right jobs.

    2. Employee Engagement

      Human Resource must no longer to be seen as an employees final option in the case of negative encounters

      in truth, modern Human Resource must be defined by active engagement with employee issues, back the staff members in the workplace, listening to their concerns, and building a professional and stable relation between Human Resource, employees and managers. Managing expectations, being flexible, communicating and adequate training is one of the most significant factors in keeping employees contented. Human Resource managers can go

      further, too conducting performance appraisals, career development and up Skilling, developing effective reward systems and designing jobs to fit both the needs of the business and employees. Taking an active and engaged role in employee happiness promotes better overall performance because it helps to retain and motivate staff

    3. Change Management

    During changes in the organization Human Resource Managers makes sure that employees are having the necessary skills and information when an aspect of their work environment changes example can be, everyone one is trained to operate new software package that is being used throughout the company or any acquisition or merger has taken place between two companies. A good change management process makes sure that all the changes go smoothly, with minimal interruption and maximum involvement from the staff.

    Human Resource plays a major role in ensuring that change is carried out according to plan because of its unique position as the core of all the employee relations. This added dimension hands over the Human Resource Manager a direct role and power while developing the business, according to the available capabilities, meaning the drastic changes are better through and presented in a manageable way to the employees who need to work through it

    Future Challenges to Human Resource Management As with any other managerial function, HR also faces a slew of challenges before it can be future-ready:

    1. HR Needs to grow

      In order to Its deliver a seamless and productive employee experience, HR first needs to evolve from its stand-alone function of administering traditional HR activities. It has to adapt into a function that cuts across boundaries and disciplines, to deliver a holistic employee experience

    2. Navigating Increasing Risk in an Increasing Complex World

      As technology continues to seamless integrate the world by breaking down traditional information barriers, HRs functions will also involve the creation of risk management strategies that will protect not just the interests and data of the company, but that of the employee as well.

    3. Managing Global business Operations

      No matter how small a business is, its operating on a global level at some point or the other, whether its for international orders or cross-border recruitment. And despite the existence if a global workforce in most companies, most organizations are only beginning to understand the management challenges and implications of such a situation.

    4. Win the war for talent

      Intercity and cross-border migration adds a whole new dimension to HR complexities. HRs in one location can hire candidates from another, but it works both ways and can lead to brain drain. As organizations continue to grow and governments still scratching their heads on how to

      efficiently control labour flows, HRs continue to face shortage of skilled employees. Organizations and governments alike will have to seek, assimilate, and analyze data on how current and future migration patterns will affect the labor market.

      Limitation of Human Resource Management :

      HRM approach is very useful in creating work culture in the organization but still suffer from certain limitations:

      1. Recent origin: HRM is recent origin, so that it lack universally approved academic base. Different people define this term in different ways .

      2. Lack of top management support: HRM must have the support of top management .The change in attitude of top management can bring good result while implementing HRM. Unless otherwise there is a change in approach and attitude nothing spectacular is going to happen.

      3. Improper implementation: human resource management should be implemented by assessing the training and development needs of employees. The needs ans aspirations of people should be taken into account while framing human resource policies.

      4. Inadequate development program : It requires implementation of program such as carrer planning , on the job training, development program and counseling etc.

      5. Inadequate information: Some Organization do not have requisite information about their employees. In the absence of adequate information and database this system cannot be properly implemented. There is need to collect proper information before implementation.


    In present scenario HR is facing various challenges like globalization, workforce diversity etc.HR people can overcome these challenges through cross cultural training, motivation of employee, technological and information technological training Due to all these challenges it is very difficult for HR people to retain, attract and nurture talented employee. But it can be possible from motivational techniques, HR executives cannot motivate employee from only financial techniques but they can motivate from non financial techniques. So that they will improve their work quality.


To conclude that it can be said that HR practice is becoming more ad more challenging day by day, they have to face lot of problems like retention, attraction of employee, dealing with different cultural people, managing work force diversity, technological and informational changes to overcome with these challenges training (Cross cultural training and technological and informational training) is necessary of HR people. To reduce mobility of professional S personnel HR people have to motivate them from monetary and nonmonetary techniques. Proper performance evaluation system and proper career development plans should be used in the should be used e organization to reduce professional.


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