Challenges Faced By Managers In Human Resource Management

Describe the Managing People and Organisations for Indian Journal of Marketing.

Organizations all over the world face managerial challenges that may jeopardize their existence. Leaders of large corporations face numerous challenges when managing human resources to meet a company's objectives. This report aims to shed light on the challenges managers and leaders of large enterprises face in managing human beings to maximize employees' output and maintaining profitability (Gayathry, 2017). Companies give managers the mandate to use all available resources to maintain stability. However, it not an easy task to keep people from varying background happy and motivated.

Adler and Bartholomew (1992) opined that globalized companies need transnational managers to establish necessary human systems that accommodate different people. It is that unique interpersonal ability of exceptional human managers that distinguish successful large corporations from failed businesses. Patterson, Kerrin, and Gatto-Roissard (2009) explained that companies should create a robust framework to maintain their most innovative and competent human resources.

Tushman and O'Reilly (1996) compared the fortunes of two large companies, RCA, a company dealing with semiconductors and Seiko, a Japanese watch company. RCA's management made ill-informed decisions that led to a period of instability and dwindling returns. Seiko's administration, however, made the intelligent decision to transition from mechanical watches to better quartz technology that heralded a period of unprecedented success. These two case studies validate the basis of writing this paper.

I agree with Adler and Bartholomew's sentiments that managers of multinational companies face a myriad of challenges in adapting to new cultures into which their corporations expand (Surie & Koduganti, 2016). These leaders have the involving task of managing local staff and changing their businesses to suit local conditions. The managers establish human systems that allow a firm to morph into a world-class entity that recruits, trains and retains talented human resources.

The most effective human managers will recognize the need for empathy when dealing with their junior staff. These sentiments resonate with my idea of how senior staff should treat their employees to maintain their motivation and hunger for success. Karp and Helgo, (2009) depict an organization as a system with diverse processes, people and activities, making it impossible for a single person to comprehend all cause-effect loops within the system. The interaction of people within an organization influence each other's behavior, motivation, and identities. However, my opinion is that while this notion makes sense, it is impractical to quantify the extent to which the behavior of a workmate can affect another person's actions.

Case Studies

The function of a leader according to Karp and Helgo, (2009), is to mold his team in his/her recognition of other people.  Leadership is an act created by the interaction between both the leaders and followers. I concur with the notion that as much as the followers are more inclined to follow the actions and instructions of their leaders, the managers' leadership styles are also influenced by the interactions with the junior staff (Karp and Helgo, 2009).

Marchington et al., (2009) proved that companies could sometimes outsource both services in case they do not want too many employees or are considering the temporal approach to hiring workers. This type of contractual employment favors the managers in the short term. However, the company runs the risk of letting too much information about their operations go to the public domain when outsourcing services. Employers' interviewed by Marchington et al., (2009) gave the impression that they had multiple objectives, among them, short-term maximization of profit and sustainable competitive advantage over their rivals.

Leading a large group of employees is paradoxical because it involves both being in control and not being in control simultaneously. I contend with the notion that a leader is a personified phenomenon. Leadership is a social phenomenon that results from interactions between human capital in an organization and the management. Karp and Helgo (2009), suggest that the art of leadership has little value without interactions and vertical communication. A manager who has trust-based relationships with junior staff is more likely to inspire loyalty and increase extrinsic motivation among junior faculty.

Furthermore, in 2009, Marchington et al. mentioned that trust cuts through the employment relationship between managers and junior staff in the same organization, or across similar organizations besides bringing clear benefits to human resource management. The ability of a manager to entrust a junior with responsibilities raises the motivation levels of lower level workers of the company.

Ola is India's pioneer online taxi service mobile application that gives users the power to book a taxi using their mobile phones. Ola was founded in 2011 by Bhavish Aggarwal and Ankit Bhati under the name Olacabs (Tripathy & Leepsa, 2017). Ola was valued at $ 3 billion in April 2018. The company has globalized to employ over one million cab drivers operating in 169 different cities. Ola aims at providing convenient, timely and reliable transport to users of the mobile phone application. Additionally, Ola seeks to incorporate the aspect of comfort when offering travel services to their clients.

Importance of Interpersonal Skills

My chat with one of the Human Resource managers at Ola was exciting and insightful in equal measure. While admitting that his work had numerous challenges, he also seemed to relish going to work every day Lovelock, Wirtz, Keh, & Lu, 2002). Human resource managers are responsible for assembling a workforce for any corporation besides firing of employees of low economic and social value to the company. Mr. Rohit Munjal gave me plenty of food for thought during our chat in his office in Mumbai. Some of the tasks he is mandated to carry out include:

Usually, Mr. Rohit identifies the needs of his company before setting out to locate the ideal candidate to fill the vacant position. He vets the prospective employees about their know-how of the city of Mumbai and their ability to use mobile phone applications to connect with clients. For maximum efficiency, a Human Resource manager hires a native of the town where the successful candidate is to work (Adler & Bartholomew, 1992). A driver who knows his city well minimizes time wastage and avoids traffic, according to Mr. Rohit.

Mr. Rohit suggested that the most challenging job to do as a human resource manager is to inform an employee that their services are no longer required in your firm. Most times the person to be fired has dependants whose livelihood depends on the benefactor. Empathy is crucial when relieving someone of their job and the feeling of remorse and mercy often overpowers many human resource managers. However, when it is necessary to fire someone to aid the company's growth, the HR is tasked with relieving the employer of his/her duties.

The challenge, according to Mr. Rohit is to get drivers to commit to contractual agreements when they feel that their job security is not assured. Many cab drivers will work towards securing their future and contingency plans (Neely, Adams, & Kennerley, 2002). The multiplicity of objectives makes the workforce to lose sight of organizational goals. Hence there will be a considerable drop in exertion towards fulfilling the company's short and long-term objectives.

Human resource managers are also tasked with balancing the use of human and other resources to maximize the output of labor (Wright & McMahan, 2011). Although not necessarily in the job description of HR managers, they have the demanding task of finding the right person and availing all the essential factors of production to them to ensure that objectives of the company are met in the stipulated time. Mr. Rohit mentioned that the process is often long and tedious, but a good HR manager should know how to balance all the factors of production if need be.

The Role of Leadership in Human Resource Management

Marchington et al., 2009 suggest that an employee working for one employer is subject to standard HR practices like appraisal and career development programs. Such factors may seem trivial to managers and may be considered standard procedure, but they have the potential to impact negatively or positively on a worker’s motivation and output if not used with caution. Mr. Rohit admitted that applying the same rules to everyone is a complicated process because of different temperament among different employees (Huselid & Becker, 2011).

Most low-level workers need inspiration from their superiors about the direction the organization is taking, according to Patterson, Kerrin, and Gatto-Roissard (2009). A critical factor that influences innovation by support staff is the attitude of the managers towards the future of the company. An optimistic manager affects the extrinsic motivation of junior team to work with greater zeal when they believe the company is heading in the right direction. Rohit, being the HR manager of Ola in Mumbai disclosed that the art of maintaining a positive outlook even when the going gets tough is a tough task.

What offers Rohit the biggest challenge is when he has to deal with questions fielded by brilliant employees who can tell when the company's objectives seem obscure. However, Rohit intimated that it takes more than classroom training to put on a bold face and act with bravado even during times of organizational crisis (Jiang, Lepak, Hu & Baer, 2012). The optimistic vibe rubs off on the support staff and spurs them to work harder towards attaining corporate objectives.

In the case where employees have unions for collective bargaining for better remuneration and human rights, the HR manager becomes the figure most under siege in any organization according to Rohit. The manager bears the brunt of workers seeking better pay and has to decide how much time he has to negotiate before crisis talks either bear fruit or hit a stalemate (Cascio, 1989). In the case when both the administration and the workers cannot find a truce, the HR manager is tasked with replacing a significant portion of the workforce as an attempt to normalize operations in the company.

Another challenge encountered by HR managers in large companies is replacing experienced and reliable workers who retire or resign. Every company has a set of competent individuals who are committed to their work. Once such workers retire, they leave a void that leaders find very hard to fill. Rohit describes losing one's best workers as a nightmare that any HR manager likes to avoid. However, Rohit circumvents this problem by replacing the experienced workers by hiring a blend of youth, talent, and experience (Lengnick-Hall, Beck  & Lengnick-Hall, 2011). Workers with such traits help mitigate the effects of losing a significant employee.

Outsourcing and Short-term Maximization of Profit

Workers that show extraordinary dedication and desire to improve the state of company deserve recognition for their efforts Patterson, Kerrin and Gatto-Roissard (2009). However, some incentives may bring emotions of jealousy, especially when there is no set framework explicitly designed to reward high performers in a company. Rohit warns that HR managers should take care when distributing incentives to maintain fairness and balance.

Additionally, Patterson et al., (2009) argue that rewards have a gradual adverse effect on organizational goals. Over time, employees may start focusing on the extrinsic motivators. This shift in focus is detrimental to an organization's objectives which could be obscured by the more appealing incentives. Rohit claimed that leaders of a large organization run the risk of influencing junior staff to chase incentives at the expense of organizational objectives.

Human resource managers struggle to adapt to changes in processes necessitated by advancements and technology. Institutional norms and values that are ingrained in the older employees are hard to eradicate in the face of changing practices in the environment surrounding an organization (Pandya & Rishi Rugata, 2017). A Human Resource manager gets torn between retaining the conservative old guard and hiring younger, more culturally versatile employees

My findings from the literature I have reviewed, and the interview with Rohit give me sufficient insight to suggest a few suggestions for a framework that should be adopted by future HR managers who aspire to fully utilize both natural and human resources to maximize profits and grow their businesses. Human Resource managers should consider the level of know-how of one's trade for them to hire support staff. Leaders should provide incentives to their employees in a controlled manner to avoid obscuring organizational objectives (Basu, Varghese, & Jana, 2017). Managers should have empathy when interacting with their junior team to foster a good relationship which leads to improved productivity. Human Resource managers should maintain a positive outlook about the future of their company to inspire confidence in their subordinates about the future of the organization. Human Resource managers should offer their new employees a modicum of job security when they hire to reduce the multiplicity of objectives where an employee works for several employers to secure their future (Bashir, Yousaf, & Verma 2016). Leaders should have open channels of communication and incorporate the opinions of junior staff in decision-making to ensure employees feel involved. Managers should practice being honest and open-minded about employees' remuneration and the financial disposition of the company at any given time to reduce feelings of distrust.

The Role of Trust in Human Resource Management

Conclusion

While it is not possible to always have an appropriate scenario in an organization, it must be noted that Human Resource managers play a critical role in steering the companies they serve into prosperity by practicing servant leadership. The paradox of leadership; where a leader is in control while not in command at the same time helps to create deeper interpersonal relationships between the management and the support staff of any given company. Moreover, a manager of a transnational company should hire culturally flexible managers who can adapt to different cultures and mold their businesses to thrive in foreign environments.

References

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