Human Resource Challenges: Pivoting to a Service Economy - Essay Sample

Introduction

Human resource management is a company's function whose primary job is to recruit, hire, compensate, offer training, and manage employees. This field is experiencing various challenges in pursuit of change. This report will discuss the multiple challenges faced by human resource management and the various opportunities provided by these challenges.

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Challenges

The HR management faces some challenges as they try to shift from a manufacturing to knowledge or service based economy. It becomes a challenge to HR management since their primary role was in the manufacturing sector, where they took care of the raw materials until they were converted to end products. The future economy tries to reduce the manufacturing industry to a service or knowledge economy, and therefore, HR feels like they are being left out. Also changing the mentality of supervisors controlling the employees which are their tradition to the new knowledge economy, where the employees are to be given a platform where they can out show their various talents and innovations and also take part in decision making become a challenge of how that will be implemented (Stone, & Deadrick, 2015).HR management used to recruit individuals based on their credentials, which in the future economy is based on talents. This process has thus resulted in the unemployment of most employees with no needed skills (Stone, & Deadrick, 2015). It has affected HR management since they have to design new teaching methods to cater to every employee.

The second challenge is based on the rise in globalization. Globalization demand HR to come up with practices that take care of different employees from various cultural beliefs and practices. The diverse employees will need to be motivated, and it is the role of HR to either come up with reward systems as a way of covering all worker's needs to ensure their satisfaction.

Growing domestic diversity is also another challenge. Each generation comes with different values, and when the HR uses the same kind of practices, it becomes a challenge. HR is thus needed to modify future practices to cater to all kind of employees with varying values. Use of technology by HR is a challenge since they are unable to attract and motivate employees that are talented and skilled (Stone, & Deadrick, 2015). Employees are at a disadvantage since they are unable to get direct advice and feedbacks from HR.

Opportunities

As much as we consider the knowledge-based economy as a significant challenge for HR, it is, however, a good opportunity for change. For instance, HR management will become the organization's priority, which is far from what they thought earlier. More talents will be natured and recognize in the process, and this means that the lack of education will not hinder individuals from attaining their goals (Stone, & Deadrick, 2015).

Globalization presents a broader market range for various goods and services, which is an excellent platform for organizations to show what they can offer to the world. Since it incorporates different cultures, there will be more innovation and creativity as they try to present what their various cultures have (Stone, & Deadrick, 2015).

However, ethnicity and generational diversity could be an advantage for any organization if only they can utilize their different skills and talents from different backgrounds and by doing this, they will be expanding market for their goods and services.

Technology, however, increases the efficiency for the HR and minimizes administrative burden and also the HR and supervisors are at a good platform of communicating to the employees more often. With the use of technology, supervisors are also at a good platform of communicating with their customers to ensure they are satisfied with the kind of service or goods provided (Stone, & Deadrick, 2015).

Conclusion

In conclusion, the economy shift from manufacturing to knowledge-based, rise in globalization, growing domestic diversity and technology are the various challenges HR management faces as they approach the future. However, they are accompanied by many opportunities as listed above.

References

Stone, D. L., & Deadrick, D. L. (2015). Challenges and opportunities are affecting the future of human resource management. Human Resource Management Review, 25(2), 139-145. Retrieved from http://perpustakaan.unitomo.ac.id/repository/Challenges%20and%20opportunities%20affecting%20the%20future%20of%20human%20resource%20management.pdf