There are a number of competitive challenges that face human resources management departments, six of which include; going global, embracing technology, managing change, developing human capital, responding to the market and containing costs.
In order for businesses to succeed in the modern world, it is necessary to try expanding into the global market. Many companies use the global market as a fantastic business opportunity to prosper and expand. This has an affect on human resources when finding new employees. They will need to look for candidates that understand international cultures, laws and business practices.
Advanced technology has decreased the number of jobs that need little skill but increased the number of jobs that require specific technology skills. Technology is used to manage Human Resource Information Systems and present accurate information for staff.
Change is a difficult thing for Human Resources departments to manage. Often companies are lacking leaders who are willing to initialize the changes or communicate their visions. They may not establish a sense of urgency or declare victory too soon.
Success increasingly depends on an organization's ability to manage human capital. The Human Resources department has to try and manage jobs, technologies and projects in a way that is unnatural to them.
It is essential that organizations aim to meet and respond to their customer's expectations. The Human Resources departments must learn the strategies involved In this process; total quality management, six sigma and reengineering.
One of the biggest challenges to the Human Resources department is to try and contain costs. Labor costs are the largest expenditures of any company and the HR department is in charge of downsizing or outsourcing, should the need to occur.
