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Human Resources Management Challenges

This document describes the challenges faced by human resources and the strategies adopted to address them, including personalization, adaptation, mobilization, anticipation, and sharing. It also discusses technological changes, global competition, and demographic and sociological shifts that companies must adapt to.

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0% found this document useful (0 votes)
7 views10 pages

Human Resources Management Challenges

This document describes the challenges faced by human resources and the strategies adopted to address them, including personalization, adaptation, mobilization, anticipation, and sharing. It also discusses technological changes, global competition, and demographic and sociological shifts that companies must adapt to.

Translated by

ScribdTranslations
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Human Resources Management Module

INTRODUCTION

Talking about Human Resources; it is not to consider that men are Resources but
that they

men have resources. The mission of HR management is to develop and mobilize them.

employee skills.

Chapter 1: the renewal of HRM


A- The contingent approach to HRM

The diagram proposes a contingency model of HRM, highlighting the link

Definitions => Logics => Practices

B- The major challenges

B-1 Technological changes and change management


Technological changes affect all areas of activity and functions of the company.
The consequences in terms of employment, skills, working conditions, and accommodation
of time, training, motivation and remuneration are
Considerable

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Four impacts of technological mutations dominate:
1-The transformation of organizations:

The new information technologies are changing


the organization of work and disrupt structures The HR function must support the
change and actively participate in organizational choices. It incorporates the function
transformation.

2- The increase in productivity:

The technological watch must include a productivity component

3- The modification of the required skills:

Each new technology transforms jobs and


the required skills The evolution of qualifications quickly renders classification grids outdated
and remuneration. It requires constant updating of job descriptions that
bring out the invariants. It modifies the criteria and targets for recruitment.

4- The increase in the cost of equipment:

requires an increase in duration


the use of equipment through the adoption of various forms of work schedule arrangements,
to amortize investments over shorter periods.

B-2 The increase of competition at the global level


The current period is marked by the intensification and internationalization of competition
The company must eliminate extra costs and waste. It must move quickly to innovate, discover the
promising niches, industrialize them, make them known, improve them, adapt them. This involves the
mobilization of all the potential of people. The ability of companies to create, to innovate, to
inventor becomes the primary source of growth.

B-3 Economic changes


Companies must ensure to limit their personnel costs/value added ratio to a
lower level
or equal to that of their main national or international competitors. The study of changes
The industrial landscape shows that survival becomes hypothetical for the company whose cost ratio
personnel/value added sustainably and significantly exceeds that of its competitors. Failure
of means to invest and innovate, it becomes a prey.

B-4. Demographic changes


The analysis of the age pyramid highlights in many companies the prospects of
accelerated aging. The post-war baby boomer generation (1946-1955) increases in numbers
of seniors since 2006. Companies must learn to manage older populations
with a consistent approach in terms
of career, of remuneration, of working conditions, of mobility, and of training to avoid the effects
perverse feeling of the end of professional life. They must also master their rejuvenation and
to have a consistent policy for managing age and diversity

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B-5. Sociological changes and diversity
Surveys show a loss of individual evidence and collective coherence.
Accelerated by the current explosion of new technologies Furthermore, the company brings together
salaries with multiple aspirations The company must know and acknowledge the diversity of those who
component. Each generation appears different from the one that preceded it and the company must
absorb these differences

B-6. The social partners


From 1958 to 1974, union membership had experienced steady growth. Since
1974, they are
generally on the decline.
Starting from 1980, the decrease in the number of labor conflicts has been spectacular both
In France, as in all industrialized countries, company negotiations are becoming an element
determining factor in the implementation of HR policies

B-7. The legislative and regulatory framework


Since the post-war period, social legislation has experienced significant development, strengthening the
Company obligations in several areas Today the applicable regulatory framework is
very rich in France
First post-war, 1936-1937, second post-war, years 1968-1973 (Extension of rights
trade unions, vocational training, improvement of working conditions), 1982 (laws and
Auroux orders in many areas). The years 1982-2013 saw an evolution
strong regulation. The laws from 2001 to 2013 on discrimination and social modernization, the time
work and pensions, training and social dialogue, social cohesion and equality
opportunities, the employment of disabled persons, seniors, employee savings, the securing of
Employment and the modernization of the labor market have a strong impact on HR practices. The directors
human resources (HR) must adapt to these changes that are increasingly

are part of a European convergence and the harmonization of the social space
European.
[Link] responsible investment
The development of SRI (socially responsible investors) and extra rating
financial
allows directing stock purchases towards socially responsible companies, imposing on
companies to account for their social and societal commitments. Social, societal reporting
and environmental becomes essential.

3
C- C. The response logics

To meet these challenges, companies adopt five logics that underpin their policies.
social
personalization, adaptation, mobilization, anticipation and sharing

C.1. Customization:
The logic of customization permeates employment, compensation, and training policies.
of time management and communication. It encourages the development of certain practices
and involves the hierarchy in an ascending manner.
Customization also translates into the individualization of schedules, individual mastery of
working time, the evolution towards chosen time. A broader choice is offered, which strives to
to promote the consideration of both the expectations and aspirations of each individual as well as the constraints of
The company. Customization responds to the diversity of employees' strong need for recognition and
of Development

C.2. The adaptation:


The company must adapt quickly and effectively to all
The developments. The race for agility is ongoing. For this, the company seeks flexibility in
five directions :
External quantitative flexibility: changes in the level of employment, fixed-term contracts...
Internal quantitative flexibility: change in the number of hours worked, hours
supplements, partial unemployment...
Qualitative or functional flexibility
Outsourcing, internal and external subcontracting, spin-off...
Salary flexibility reversible random compensation, collective and individual...
The logic of adaptation concerns all areas of HRM. The speed of adaptation becomes a
major concern for businesses. It involves intelligence, initiative...

C.3. Mobilization:
The mobilization relies on the involvement of the hierarchy and on its ability to
to motivate its employees. It requires a favorable social climate and a real social dialogue. It
also implies the construction of new social ties between employees and the company.
Man is no longer a constraint but a reservoir of resources.
The performance of the organization results from the development and mobilization of resources.
individuals. F. N. Taylor's observation applies not only to physical effort but to all
quality of intelligence and creativity. Companies are rising to the challenge by developing a management of
people.

C.4. Anticipation:
The growth of the "Glorious Thirties" (1945-1974) allowed for a reconciliation
lack of predictive management and maintenance of balances.
Today, the lack of visibility requires a proactive approach to develop
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the ability to adapt to unforeseen events and uncertainty. The success of short-term management
The term of employment is part of a proactive management of skills. A management that
short-term without anticipation multiplies the dangers in the medium term and compromises survival of
The company. HRM is part of a sustainable development perspective.

C.5. The sharing


This sharing imposes a significant effort of awareness and training of the
Hierarchy. Successfully mobilizing, adapting, and customizing requires a new distribution.
tasks.
Every manager exercising a leadership role participates in HRM within the framework of sharing
the function. "All HR" becomes a watchword for companies concerned with efficiency and
development. The close manager is directly involved in all actions of the function
human resources (HR). He must participate in eight missions:
1- choose, i.e. define the skills, recruit, welcome, integrate
2- manage, employment and time, foresee the evolution of jobs, develop flexibility
3-orient, follow them, use skills assessments, promote international mobility
And assess the potentials
4- former, while ensuring to identify the training needs of its employees, develop the plans.
individual training

5- to remuneratewhich requires implementing a strategic compensation management,


to evaluate positions, to understand the overall compensation policies...
6 - mobilized, to achieve this, involve its collaborators, animate and communicate, inform,
mastering interculturalism and redesigning work organization
7- therefore negotiate knowing the logics and methods of action of the unions, develop dialogue
social, negotiate with social partners;
8- monitor, build the information system in terms of HR, have a strategic vision of HR,
dialogue with HR, refine the soft skills of its employees
This sharing can only succeed if the HR directors also share the expectations of the managers.
understand their business approach.

Chapter 2: The missions of the human resources function

The client-supplier approach applied to the HR function helps to identify its main missions.
A. The HR Director and his internal clients
In the organization, the HR function works for four categories of clients whose expectations
appear very diverse.

A.1. Employees' expectations:


Equity, employability, ethics, and recognition are the expectations that seem to be developing.
Equity:
Each employee evaluates what they bring, their contributions to the company's benefit such as their efforts,
his skills, his results. He also assesses what he receives, his compensation, the benefits he
in terms of remuneration, recognition, or status.
5
According to the equity theory formulated by J. S. Adams, the observation of an inequitable situation leads to
actions aimed at recreating equity. Each employee wishes to be treated fairly. The HR director must
implement the keys of equity Guaranteeing the employee fair treatment implies that:
– their contribution should be evaluated and appreciated reliably.
the possibility of increasing his contribution is offered to him.
the link between contribution and reward should be clear and explicit;
the link between the increase in contribution and the increase in remuneration is
precise
– the rules should be respected.
the communication regarding the expected contribution, the rules, and the decisions should be
pertinent.
These points require intervention from the HR director for:
develop the tools to assess the contribution, to determine the remuneration and to define
the roles;
train managers (n + 1) to master the tools;
provide relevant information to the n + 1
assume the monitoring of the implementation of the tools;
– provide each employee with useful information.
The HR manager plays a particularly important role in providing information. He ensures that information
relevant both for the employee and for his hierarchical superior are available at the time
opportunity

2. Employability:
Employees have realized the essential importance of their employability as an element
security in the labor market. The employee has strong expectations of their employer.
To ensure this employability, the HR director intervenes at four levels:
knowledge of the current skills of each employee;
knowledge of the skills required for current positions;
knowledge of the skills that each employee can develop and the methods to achieve them
to reach
knowledge of the evolution of jobs, new jobs, and necessary skills
to hold them.
The role of hierarchy is particularly essential in terms of communication. In a context
of talent shortages, the company strives to develop all the talents of its employees, to make them
All talented.

3. Ethics
The ethical requirement is developing among employees. Ethics allows them to be reduced without multiplying the
controls, sanctions, and the corresponding costs. The stronger the interdependencies, the more
structures are pyramidal and the more ethics is necessary.

The pursuit of equity promotes ethical behavior and, conversely, the existence of a
ethical behavior facilitates the development of equity. The most sensitive points in HRM are
those of security, remuneration, and employment. Rigor in the implementation of policies and
transparency and accountability are the two pillars of ethical action

4. Recognition

6
The need for recognition is essential today. The company must identify the expectations of
recognition of employees in their diversity.
The expectation of equity, employability, ethics, and recognition expressed by employees cannot
to be satisfied only by an effective sharing of the function between the HR department and the managers
hierarchical.

A.2. The expectations of the management


The HR director must ensure the sharing of the function and the empowerment of hierarchical managers.
On one hand, it must become a genuine business partner; on the other hand.

The sharing
The hierarchy expects the HR department to propose a clear, precise, realistic, and viable charter.
The success of these charters relies on the commitment of hierarchical leaders. To obtain this
membership, it is necessary to establish effective means of empowerment for the n + 1 in
this field. This involves sharing at three levels.
Sharing the vision: So that every decision made by the n + 1 falls within the framework of
strategic challenges of the organization, it is necessary that they know and share the long-term vision
company terms in terms of HR.
The sharing of knowledge: The n + 1 must have sufficient knowledge to make all
individual decisions.
The distribution of powersThis distribution concerns three types of powers: the power of suggestion,
organizational power and decision-making power
Today, the main decisions within the purview of the hierarchical manager are:
. the power to choose the candidate to recruit internally or externally from a list
restricted
the power to reward merit through individual raises or bonuses
exceptional
such as the granting of non-salary elements;
the power to decide on training actions for the entire department and for each individual
collaborator

2. Being a business partner


In service of the company's strategy, the HR function assists each of the operational managers.
to achieve its value creation objectives. It thus becomes a business partner. To achieve this, it
must "understand the business," speak the same language as the operations team.

A.3. The expectations of social partners


The employee representatives express very diverse expectations depending on their statuses and their
shared commitments. Three common expectations emerge from the surveys.

1. Listening:

The HR manager must ensure that employees and their representatives can express themselves and that
their messages are heard. With HR portals and intranets, listening relies on tools
allowing for a broad and regular collection of employee messages

2. Compliance:

7
The HR manager handles complaints and ensures to limit risks. He trains the hierarchy on
compliance with rules and controls.
3. Social dialogue:

The themes of training, equal opportunities, diversity of sharing


profits, the predictive management of employment are among the sensitive topics debated for
rebuild the social bond.

A.4. Expectations of the General Management


Security, strategy, and value creation are the three main expectations.
1. Security: The HR Director must identify and reduce all risks related to men's participation in the
business life
2. Being a strategic partner: the difference between the successful company and the one that stagnates rests on,
above all other competitive advantages, on the quality of its human resource management
(HR). HR is a strategic lever to achieve the firm's objectives. The alignment
Strategic HR policies and practices are a factor of sustainable success.
3. Value creation: Increasingly concerned with value creation, management expects to
the HR department that constantly shows its added value.

B. The field of social

8
An inventory of the main areas of social issues is provided by the social balance sheet.
Table 1.2 lists the thirty-four headings that make up the social balance sheet. This
nomenclature
allows to classify social information.

C. Human resources policies


The main personnel policies are as follows
Employment policies. They encompass recruitment, promotion, and
departures from
the company, policies towards specific categories and the search for job adequacy
skills.
Compensation policies. They are based on choices regarding the level and
terms of
They are part of a global and personalized compensation perspective.
aligned with the company's strategy.
Security policies, improving working conditions, health, and well-being.
The training and skills development policy
The information and communication policy
The policy of involvement and participatory innovation.
The policy of professional relations.
The policy of recognition.
The policy of social and cultural activities.
Time management policies
Diversity policies

Chapter 3: Social and Responsibility Audit


societal

Can be defined as a systematic, independent, and documented process allowing for expression
an opinion on the various aspects of the social and societal impact of an organization and the
participation of individuals in the objectives of an organization and to formulate recommendations

allowing to improve the quality of HRM and the consideration of its social responsibility (SR)
as defined by the new ISO 26000 standard.
A. Definition
This definition allows for the specification of five points:

The methodical, independent, and well-documented nature of the audit stems from the use of approaches.
and rigorous tools and a deep understanding of the audit field.

The scope of social audit is broad: all aspects that arise from the mobilization of resources.
humans are part of an organization

9
[Link] use of relevant frameworks is essential. The auditor must choose a framework.
He can therefore retain:
A regulatory framework The use of regulatory standards allows for a compliance audit.
legal;
a historical benchmark, by comparing the rate with external data such as the
averages
national averages, sector averages, averages defined based on size
–a political framework, by comparing the observed figure to the company's objectives.
4. Formulating an opinion is essential. The quality of the opinion depends on both the choice of
the indicator and the choice of the framework.

[Link] the opinion, the audit must allow for the formulation of recommendations in order to improve the
quality of HRM and CSR.

B. The steps
Five steps of the social audit process can be distinguished: defining the mission,
pre-diagnosis, adaptation of the work program, execution of the works, audit report with its
presentation. For thirty years, social auditing has been developing. Procedures for
Certification of social auditor skills has been established to meet expectations.
of companies and organizations.
The expectations of HR directors regarding the audit are at five levels: more security (compliance audit),
reliable and relevant social information, more efficiency (to verify that the objectives are
reached), more efficiency (better cost control), better strategic choices
At each level, there are specific missions and appropriate skills.

B. The references
The quality of the audit largely depends on the relevance of the standards used. The search for
information enabling the construction of appropriate reference frameworks for each audit mission is
essential. In the context of globalization, the frameworks are often international.
international standards of conduct (ISC) gradually established by the various
International instances constitute the framework for decent work.
The ISO 26 000 standard is now a recognized international reference for the
social responsibility of organizations across the entire field of CSR: social, societal and
environmental.
The standards that will be gradually adopted will provide interesting frameworks for
the social auditor, knowledge of the best practices of organizations also allows to
having benchmarks to situate the HR practices of the audited organization and propose
improvements

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