Managing People at Work: Challenges in Human Resource Management

Abstract

Human Resource Management (HRM) refers to the structured systems designed to oversee people within an organization. The main responsibilities of an HR manager revolve around staffing, employee compensation and benefits, and work design. The ultimate goal of HRM is to maximize organizational productivity by enhancing employee effectiveness. Despite the rapid pace of business changes, this fundamental role is unlikely to shift. As Edward L. Gubman noted in the Journal of Business Strategy, the essential tasks of HR—acquiring, developing, and retaining talent; aligning employees with business goals; and contributing meaningfully to organizational success—will always remain relevant. HRM poses additional challenges for small enterprises, which often lack a dedicated HR department and may rely on a single HR person or even the owner. Therefore, understanding these challenges becomes vital for ensuring growth and sustainability. This paper seeks to analyze the challenges in HRM, propose solutions, and highlight future trends.