HRM Strategic Challenges

The HRM Function has some strategic challenges, which will affect the whole organization in the future. The strategic challenges will change the organization of the HRM Function and its role in the organization.

The current role of the HRM Function is about providing services to the organization and the managers are a clear clients of the HRM Processes. The HRM Function usually do not provide challenging questions and initiatives to the organization and the business leaders do not have to worry about the HRM Function as the salaries are paid correctly at every pay date defined by the organization.

The main HRM Strategic Challenges can be defined in four main areas:

  • Leadership Development;
  • Management Development;
  • Globalization;
  • Outsourcing.

The Leadership Development is one of the biggest HRM Challenges. The leadership development is the only way to secure the organization for the future. The supply of the leaders is very limited and the organization has to focus on the growth of the potential available inside the organization. The HRM Function has to take the responsibility for the initiatives to identify and grow the potential inside the organization and to secure the best potential to stay in the organization. The leadership development initiatives are extremely costly, but the organization has to recognize the need to invest in such initiatives. This is a major HRM Challenge.

The line management is another HRM Challenge. The line management is the main user and client of the HRM Value Added processes and they have to be able to use the processes correctly. The HRM Function can be seen as the enemy, but the HRM Challenge is to develop and train the line management in the daily usage of the value added HRM Processes to make the organization more efficient.

The globalization is another HRM Challenge. The HRM Function has to make its policies, procedures and processes to work on the global level. Currently, most of the HRM Policies is focused on the concrete country, but the employees have to start to move from the country to another country and the HRM Processes have to be able to support such a need in the organization. The globalization has a huge impact on the HRM Function and the it is usually not ready to take more responsibility in the movement of the workforce around the Globe.

The outsourcing is the main issue for the HRM Function. The HRM Function has to be able to outsource its non-core services for the organization and it has to be able to keep the service level for the organization. The outsourcing HRM Challenge is pretty huge as it requests a lot of standardization and practice from the HRM Function.