Challenges In Human Resource Management Of 21st Century Business Essay

Challenges In Human Resource Management Of 21st Century Business Essay With the advent of the IT revolution all over the world and globalization being the new mantra across the corporate sector, the Human Resource Management practices and policies have undergone severe changes. The challenges that are faced by the HRM today are totally new to what has been few years ago. This paper highlights the importance of HRM in meeting the new challenges. Our paper focuses on these challenges that are impacting the organizations all over the world. Challenges: Setting the uniform culture across the organization which has expanded all over the world HRM in defining the career progression and development for its employees HRM in handling the gender diversity and cultural differences Addressing the issue of employee turnover HRM and its role in implementation of the strategy with respect to the vision and mission of the organization Setting the Right Culture With most of the companies raring to expand in the international market, it has become a tough task to set th e right culture within the organization. With the hiring of employees from the global workforce, there is always a threat of diffusion of cultures and thereby losing the homogeneity in the culture of the organization. The biggest challenge for an organization is preserving its culture or maintaining the right culture for the 21st century. Therefore Storey defines HRM with respect to this aspect as: â€Å"a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques†. (Deanne N.Den Hartog, 2004). According to the HRM specialists a combination of â€Å"High Performance work practices† and â€Å"High Involvement work practices† improve the performance of the organization. To determine the right mix of â€Å"High Performance Work Practices† and â€Å"High Involvement Work Pract ices† the focus model of the organizational structure can be used (Exhibit 1). Exhibit 1: FOCUS Model on Organizational Culture (Deanne N.Den Hartog, 2004) The above model divides the organizational culture into two dimensions. Dimension 1 is based on the organizational focus. It varies between extreme poles of Internal to External. In internal focus of organization the stress is laid on organization, its internal processes and people’s skill sets and attitudes etc. In external focus of the organization the emphasis is laid on the relation of the organization with the external environment. Dimension 2 focuses on the amount of flexibility and control within the organization. Based on the above dimensions four orientations of the organization can be determined. They are: Support Orientation: The concepts like co-operation, trust, cohesion amongst the group members and colleagues and growth of an individual are given the utmost importance. For such kind of orientation of o rganization high performance work practices which aim to the development of an individual are needed. Innovative: This kind of orientation is characterized by self-motivated, accepting and willingness to accept change, creativity, and risk taking kind of environment. From the management perspective it needs employees who are self-motivated, who are willing to lead, and highly flexible. Therefore the work practices should be structured which emphasize flexibility, empowerment and openness