DISSERTATION PROJECT REPORT

SUBMITTED IN THE PARTIAL FULFILMENT

OF
THE REQUIREMENTS OF AMITY University
for the of the degree of
BACHELOR OF BUSINESS ADMINISTRATION
for the session 2021-2024.
 DECLARATION BY THE STUDENT
I ,ISHA SHAH hereby declare that the project titled Evaluating the problems of human resource
management and their impact on organisational performance has been carried out by me during
my ‘DISSERTATION’ and is hereby submitted in the partial fulfilment of the requirement of the
AMITY UNIVERSITY for the award of the degree of Bachelor of Buisness Administration . To the best
of my knowledge , the project undertaken , has been carried out by me and in my work .

The contents of this report are original and this report has been submitted to AMITY UNIVERSITY
HARYANA and it has not been submitted elsewhere for the award of any
Certificate/Diploma/Degree etc

NAME OF THE STUDENT – ISHA SHAH

ENROLL NO – A50006421039
 CERTIFICATE OF APPROVAL

This dissertation Report by ‘ISHA SHAH’Titled ‘Evaluating the problems of

human resource management and their impact on organisational
performance’. is approved in quality and form and has been found to be fit
for Partial fulfillment of requirements of AMITY UNIVERSITY for the award
degree of Bachelor of Business Administration.

APPROVAL OF THE AMITY

BUSINESS SCHOOL AND AMITY
UNIVERSITY
 CERTIFICATE FROM FACULTY MENTOR

This is to certify that Ms.ISHA SHAH Roll No. A50006421039, a student of BBA.
(2021-2024), has undertaken the ‘Dissertation Project’ titled Evaluating the
problems of human resource management and their impact on organisational
performance.
The Project report is hereby submitted by the student for the partial fulfillment of
requirement for the award of Bachelor of Business Administration, under my
supervision. To the best of my knowledge, this project is the record of authentic
work carried out during the academic year (2021-2024) and has not been submitted
anywhere else for the award of any Certificate/Degree/Diploma, etc

SIGNATURE
Name of the faculty mentor – Dr Faraz Ahmad
Designation of the faculty mentor- Assistant professor: Amity Business School and
management, Amity University
 ACKNOWLEDGEMENT

I take this opportunity to thank my faculty mentor DR. FARAZ AHMAD , AMITY UNIVERSITY , for her
valuable guidance , closely supervising this work with helpful suggestion , which helped me to
complete the report properly.

More importantly her valuable advice and support helped me to put some creative efforts on my
project. She has really been insipiration and driving for me has enriched my raw ideas with her vast
knowledge and experience .

Specifically, I would also give special thank to my parents whose blessing and love enabled me to
complete this work properly as well.
 TABEL OF CONTENT

EXECUTIVE SUMMARY

CHAPTER I

Effects of human resource management The idea behind

human resource managemen
CHAPTER II Literatuer Review

Problems faced by human resource management Functions of

human resource management

Theories for organizational effectiveness Traditional

human resource management mode
CHAPTER III Objective of the study

CHAPTER IV ResearMethod of Analysis Sample Sizech

Methodology
Importance of the study Limitations of the study
CHAPTER V Data Analysis & Interpretation
CHAPTER VI

Recommendation CHAPTER

VII Conclusion CHAPTER VIII

Bibliography
 EXCUTIVE SUMMARY
This research paper is completely focused on the problems of human resources management and its impact
on organizational performance. This paper gives insight why human resource management decisions are
likely to have an important and unique influence on organizational performance. The objective of this
research is to explore and identify the problems faced by Human Resource Management in achieving
organizational effectiveness. In this research paper we discuss that how and why Human Resources
Management is responsible for making the organization productive and prospering the workforce. The
purpose of this study therefore is to assess whether human resource management practices, particularly
recruitment and selection, Staff performance appraisal, compensation, and training and development
practices influence its performance? Qualitative research methodology has been carried out to understand
the problems of Human Resources Management. Primary and secondary data have been used gather
information. Personal interviews and questionnaire used to collect primary data. The research analysis was
analysed based on the response of the interviewees and responses of the questionnaire. The findings of this
research paper is that management might be able to increase the level of commitment in the organization
by improving satisfaction with compensation, policies, and work conditions. Companies should involve their
employ as they are viewed as an indispensable source of competitive advantage. One way to increase the
job satisfaction at the workplace is expanding the interactions level with employees in staff meetings and
discussions of their issues. It will influence commitment and will help the organisation to enhance their
productivity
 CHAPTER 1
INTRODUCTI
ON
Human resource management (HRM or HR) is the strategic approach to the effective and efficient management of people in a company
or organization such that they help their business gain a competitive advantage. It is designed to maximize employee performance in
service of an employer's strategic objectives. Human resource management is primarily concerned with the management of people
within organizations, focusing on policies and systems. HR departments are responsible for overseeing employee-benefits design,
employee recruitment, training and development, performance appraisal, and reward management, such as managing pay and
employee benefits systems. HR also concerns itself with organizational change and industrial relations, or the balancing of organizational
practices with requirements arising from collective bargaining and governmental laws.
The overall purpose of human resources (HR) is to ensure that the organization is able to achieve success through people. HR
professionals manage the human capital of an organization and focus on implementing policies and processes. They can specialize in
finding, recruiting, selecting, training, and developing employees, as well as maintaining employee relations or benefits. Training and
development professionals ensure that employees are trained and have continuous development. This is done through training
programs, performance evaluations, and reward programs. Employee relations deals with the concerns of employees when policies are
broken, such as cases involving harassment or discrimination. Managing employee benefits includes developing compensation
structures, parental leave programs, discounts, and other benefits for employees. On the other side of the field are HR generalists or
business partners. These HR professionals could work in all areas or be labour relations representatives working with unionized
employees. HR is a product of the human relations movement of the early 20th Century, when researchers began documenting ways of
creating business value through the strategic management of the workforce. It was initially dominated by transactional work, such as
payroll and benefits administration, but due to globalization, company consolidation, technological advances, and further research, HR
as of 2015 focuses on strategic initiatives like mergers and acquisitions, talent management, succession planning, industrial and labor
relations, and diversity and inclusion. In the current global work
environment, most companies focus on lowering employee turnover and on retaining the talent and knowledge held by
their workforce. New hiring not only entails a high cost but also increases the risk of a new employee not being able to
adequately replace the position of the previous employee. HR departments strive to offer benefits that will appeal to
workers, thus reducing the risk of losing employee commitment and psychological ownership. There are half a million HR
practitioners in the United States and millions more worldwide. The Chief HR Officer or HR Director is the highest ranking
HR executive in most companies. He or she typically reports directly to the chief executive officer and works with the Board
of Directors on CEO succession. Within companies, HR positions generally fall into one of two categories: generalist and
specialist. Generalists support employees directly with their questions, grievances, and work on a range of projects within
the organization. They "may handle all aspects of human resources work, and thus require an extensive range of
knowledge. The responsibilities of human resources generalists can vary widely, depending on their employer's needs."
Specialists, conversely, work in a specific HR function. Some practitioners will spend an entire career as either a generalist
or a specialist while others will obtain experiences from each and choose a path later. The position of HR manager has been
chosen as one of the best jobs in the US, with a #4 ranking by CNN Money in 2006 and a #20 ranking by the same
organization in 2009, due to its pay, personal satisfaction, job security, future growth, and benefit to society. Human
resource consulting is a related career path where individuals may work as advisers to companies and complete tasks
outsourced from companies. In 2007, there were 950 HR consultancies globally, constituting a US$18.4 billion market. The
top five revenue generating firms were Mercer, Ernst & Young, Deloitte, Watson Wyatt (now part of Towers Watson), Aon
(now merged with Hewitt), and PwC consulting. For 2010, HR consulting was ranked the #43 best job in America by CNN
Money. Some individuals with PhDs in HR and related fields, such as industrial and organizational psychology and
management, are professors who teach HR principles at colleges and universities. They are most often found in Colleges of
Business in departments of HR or Management. Many professors conduct research on topics that fall within the HR
domain, such as financial compensation, recruitment, and training
1.2 Effects of human resources management on organisational performance

Human Resources Management in any organisation is created with the sole purpose of establishing a
strong tie between the organisation and the employee. An organisation uses the human resources
management to help their employees in developing their skills. These skills are then further used to
contribute to the organisational development. Here are some points that tells us some impacts.

● By offering the employees benefits for staying with the firm, positive behaviour is encouraged.
Human resources management analyse and reward those employees who have been strongly
supporting the company in its policies. However, the flip side is also true as those employees who are
not so focused receive fewer rewards for that.
● These days flexibility in the workplace is of utmost importance. With a different kind of employees
joining the workforce rising it is crucial that the firm offers them packages and benefits which are
suited as per their interests. In such flexible workplaces, employees are able to adapt their working
style according to their lifestyle needs.
● It is the duty of a manager to motivate juniors in a positive manner. Doing that increases the
motivation level of workers and thus also improves the kind of output they provide. It is a known fact
that employees of firms having strong HRM policies in place tend to perform better. PROBLEMS OF
HUMAN RESOURCES MANAGEMENT Managing people in the present context is not an easy task as it
is mired in many problems. The competitive challenges include globalization, technology, managing
change, retaining human capital, responding to market forces and cost containment. The competitive
challenges are compounded by concerns for employees influenced by diversity, age, gender issues,
job security, educational levels, employee rights, privacy issues, work attitudes and family problems.
 1.3 The idea behind human resource management

The introduction of the concept of Human Resources Management came to light in the 1980`s. This trend was ushered in after
an intense term in which the application of scientific methods was used to solving the problem of obtaining maximum efficiency
in industrial work. Human Resource Management was used to break the trend or belief that man is a man and not a robot. It is
important to know that for several decades organizations have increased interest in organizational effectiveness irrespective of
the field of business. This interest makes every firm active when dealing with Human Resource Management in having
maximum organizational effectiveness. Human resource management has sought to become an essential element of
organizational effectiveness through the adoption of various new disciplines. Thus, we can ask, what is human resources
management? What do they take into consideration and how are they integrated? What is the importance of human resource
management? What are the main theories and how do they work? What are the links between the human resources
management and organizational effectiveness? In order to answer to all these questions, a precise definition of human
resources management will be provided as well as a look into different approaches built by theorists, and in conclusion, the
limits between the models and their application will be ironed out depending on the specific environment. Human resources
management is essential to all and it must be developed with a relevant purpose to achieve organizational effectiveness.
Understanding that human capital is the main source of competitive advantage is the work of Hu-man resources management.
Taking into consideration that a human being is not a robot, gives it gratification, training, education, encouragement,
motivation, reward and recommendation; human resources aim to optimize human capital, get organization efficiency and take
care of relationship between the management of the company and this type of capital, this relationship is having several
possible meanings in most cases. In order to get organizational effectiveness, companies have to develop human resource
systems to achieving both horizontal and vertical integrations. Horizontal integration is one of the focal points to consider when
a company wants effectiveness and to reach the planned company`s goals. However, horizontal integration is considered not to
be the most important factor leading to achieving the company`s goals. Vertical integration focuses more on the relationship
between human resources, the strategy and tactics to reach the organizational goals.
Human resource management is the area of administrative focus dealing with an organization`s employees.
In most cases, human resource management is the term used to describe formal systems devised for the
management of people within an organization. Essentially, the purpose of human resource management is
to maximize the productivity of an organization by optimizing the effectiveness of its employees. As Edward
L. Gubman observed in the Journal of Business Strategy, ´´The basic mission of human resources will always
be to acquire, develop, and retain talent; align the workforce with the business; and be an excellent
contributor to the business. Those three challenges will never change. ´´This proclamation is unlikely to
change in any fundamental way, despite the ever-increasing pace of change in the business world. Edward
E. Lawler III (2014) emphasizes that what makes organizations effectiveness is how theyorganize staff and
manage their human capital. Modern organizations are dependent on complex systems and the
knowledge of their employees. He also mentioned that if human resource can identify key talent areas and
man-aging critical talent, it has opened the door to being a major strategic player, with respect to
organizational effectiveness. Organizational effectiveness is hard to measure as there is no unified
definition of the organizational effectiveness. Each company has to design its own measures and has to
define the desired target values. The organizational effectiveness is essential for the triumph of the recent
organization.
Human resource management decisions are likely to have an important and unique influence on
organizational performance. In spite of all the differences in scholars’ opinion, there are few points that are
included in all the various definitions and they include number of employees, the size of the company, also
the sector of the organization in question. The importance of managing human resource capital in achieving
organization effectiveness has enticed most organizations to invest human resource management and this
will have a great positive effect on the company and entire economy
 CHAPTER II
LITRATURE REVIEW
Analysis of literature forms a vital as well as a crucial part of researches. No research study is
taken to be as thorough if a broad literature review is not made by the researcher in his or her
research study. The elementary motive of undertaking this task is to find the research breach
between studies done so far and also to decide exactly the topic of research and to get a
perception into the research theme selected for study. In this sense this implementation
becomes a kind of exploratory research. The role of an HR of a company is to maximize the
employee productivity and protecting the company from any issues that may arise within the
workforce. But during the work HR face a lot of problems and we are here to analyse and
evaluate those problems and will find the impact of same on the organisation.

By The Times of India (22nd February 2022

Machine learning and Artificial Intelligence: A futuristic approach to employee engagement -
Employee engagement trends transform as the generations change in the workforce.
Consequently, the tools or solutions to engage and retain employees and measure and enhance
their engagement levels are also changing. As per some of the recent research reports, a set of four
generations
constitute the workforce in today’s highly competitive and digitized time
● The old-school Baby Boomers and Gen X believe in hard work and loyalty towards
their employers. They consider face-to-face conversations as the most efficient way
of communication. They focus on their job roles and remain committed to their
companies if given the right growth opportunities.

● Gen Y or Millennials, the current workforce, harness the technological

developments coming their way. They prioritize a sense of belonging and compassion
in their organization. They want to feel recognized and valued and strengthen
relations with their employers and co-workers. Moreover, they show interest in
exploring new digital engagement tools alongside their senior leaders

● As per a study by Dell Technologies, Gen Z is excited about technology’s role in future
organizational systems and processes. They aspire to work with cutting-edge
technology. They look forward to how digital technology could prospectively
revolutionize how employees work and how employers engage with them. When
equipped with advanced technological tools, they tend to show high engagement and
involvement in their jobs.
 By The Business Times(14th March 2022

Performance management must change for hybrid work to work - AS WE transit to an

endemic phase with Covid-19 and its variants, companies are now moving
from a heightened fight-or-flight state to tackling some of the fundamental
shifts that the pandemic has brought to the global workforce.

Hybrid work is here to stay. A study by The Adecco Group among 8,000 office-based workers found that 74 per cent
would like a mix of office-based and remote work in the future, and 79 per cent of C-suite leaders believe that business
will benefit from allowing increased flexibility. These attitudes are shaping the way that companies will structure their
workplaces, performance management and employee experience management.In our discussions with chief human
resource officers and chief executives from the private and public sectors, an interesting thread emerged - that
performance management is what will make hybrid work work for us. Here are four takeaways. Remote working has
shed light on how workplace performance management and evaluation had previously been premised on visibility and
presence when we were all working from the office.What has resulted is an unconscious bias and fear among
employees, concerned that they may be disadvantaged in their performance reviews or short-changed on promotion
and progression opportunities compared to more visible co-workers physically in the office and these fears are not
unfounded because the "see and be seen" model is also a trap that senior management admit they fall into. A rewiring
in leaders must occur - to not grade performance based on a team or individual's visibility (we'll get into what
performance measurement should look like for hybrid work shortly) and it's crucial they move out of this so the rest of
the organisation doesn't bear the brunt of this onedimensional mindset
 By The FE News(18th April 2022

How Workflow helps your Organization Connect Tools and Teams to Drive Productivity – A competitive workflow contains effective
features and work tools that help organizations accomplish their business process. Workflow tools are simple
information systems that allow businesses to build and optimize their processes. The tools help users build an efficient
workflow management system compatible with current and future needs. The primary aim of workflow tools is to
ease business operations, save time and increase productivity.

Executive teams, departments, or stakeholders need the tools to hasten the business process, eliminate errors and
increase revenue. Workflow tools allow businesses to save time by removing redundant tasks that utilize more time and
resources. Employees can create time for other tasks and help the business achieve more.

2.2 Problems/challenges faced by human resource management

In spite of the outrageous contribution of human resource management towards organizational effectiveness in working
life, such as developing good relations, conflict management, building of culture and values in the organization there
have been several challenges organizations are facing regarding the management of the human resource capital in
achieving organization effectiveness. There are various constrains that hinder the success of managing human resource
capital from the organizational setting in Finland. These problem includes building teams in an organization, building an
organizational culture, people engagement and development, human resources effectiveness measurement,
organizational effectiveness, compensation, staffing: recruitment and availability of skilled local labor, succession
planning, learning and development. There are challenges faced by HRM. One of our major challenges is giving our
employees the right incentives. Also, there are some external factors that exist in the outside of the organization that
availability of experienced workers and technology. The managing director, mentioned that it essential in a work place to
have good relationships between the employees and to make sure that they are assured that there is a future for them in the
company. He also noted that according to law in industry, diversity in the organization must be well maintained and there
must be a logical arrangement to put this in place. It is essential to know that challenges of human resource management are
numerous based on my understanding, experience and expertise. We have faced numerous challenges and to mention a few,
the challenges are often driven by competitive factors that exist in an industry that require a response of positive practices to
remain competitive. When considering recruiting, the recruitment of workers for the job is always painstaking while retaining
them in this ever-changing world of today is a major challenge. Employment can pose another problem which makes
recruiting top talents a huge task. When there is job advertisement many people submit their application but sometimes the
best credentials are not going to be the best recruit. For example, one hundred applicants applying for ten positions, selecting
the best ten from the hundred will definitely be a huge task to the HRM department because more resources and time would
be consumed in the process of verifying the credentials.
Furthermore, after the company has screened and the best candidates have been chosen, retaining them for longer period
on the job is also a challenge faced by HRM. Money, time and other resources will be spent on the new employee for training
and development. Hence, losing them to other companies will have an adverse effect on the organization. Developing the
workforce is a major challenge for human resource management because the ways to do when develop the employees are
constantly changing and many people are afraid of the change. Nevertheless, the change is a constant thing that happens to
people, so adopting new skills and ideas can be challenging for some employee, this will then have an effect on the HRM.
Since the well being and happiness of the employees will make them perform and work effectively, making sure all the
employees are happy, satisfied and fit for their task are challenges faced by HRM, this requires that all employee records
must be well kept. When it comes to cost, the value of money used to produce or deliver a service is a challenge for HRM.
Every manager want operate in a costless mode. However, the managers are continually reducing costs of all types, including
the daily work hours of the employees, operations and money spent on equipment.
In some instance there are jobs but less people with skills require some companies to pay more for those workers who
can use certain skills to get the work done. The globalization of business practices have focused on integration of global
operations and management rather than trade and investment, which has significantly affected the management of
human resources. Racial and ethnic minorities are another challenge faced by HRM because the minorities of the
population account for a growing percentage of the overall labor force. Also, in some job types, men constitute the
majority while in some jobs the women are more. At the same time, the population is aging, resulting in an older labor
force. A significant number of the experienced employees will be retiring soon and this is definitely a challenged to HRM.
Finally, technological advancement has changed the way human resources management is managed and this chance is a
major challenge to the company

2.3 Functions of human resource management towards organization-

al effectiveness

It is ideal that every company that wants to manage its organization most valuable asset (employees) must have an efficiently
run human resource department which can provide the company with an excellent framework and the competence to meet
business needs. What are there when it comes to recruiting, human resources department is charge with the respon-sible to
develop compelling solutions to meet the workforce trend and demands. They broadcast the job, screen the applicants,
conduct interviews, to source candidates, and organize employment ef-forts with the leader responsible for making the final
decision of candidates. Apart from the re-cruitment and selection process, the human resource department also looks into
compensation and benefits to find ways to attract to the most qualified applicants. Workplace safety is an essential factor
which should not be taken for granted. Under the Occupa-tional Safety and Health Act of 1970 in Finland, employees have the
right to safe working environ-ment from their employers. It is essential for the human resource department to support
workplace 27
safety training and likewise maintain federally mandated logs for workplace injury and fatality reporting. It is also
essential to take note of the benefits regarding the organization employees compensation related issues. The human
resource manager is charge with the responsibility for maintaining the employer-employee relationship through
measuring work satisfaction, employee

engagement and resolving workplace issues. It also ensures that the workers have conducive and milieu environment
for work-ing, free from discrimination and harassment. It is also essential to develop management response to union
organizing campaigns, negotiation, agreement, collective bargaining and giving detailed ex-planation of labor union
contract matter. When it comes to compensation and benefits, it is ideal to have an excellent compensation frame-
work and evaluating competitive pay processes.

Human resource department must develop good compensation plans, align performance systems with compensation
structure and negotiate group health care benefits. It is also the responsibility of the human resource department to put an
eye on the medical reports of each employee in adherence to confidentiality. A critical human resource function is to train and
develop employees. This includes orientation, training and professional development. Professional development training is
basically for workers that are eager for promotion or employees who is curious to achieving individual goals such as fin-ishing
university degree or doctorate degree. Human resource managers must have frequent check or assessments to know when it
is ideal for training. They check the workers performance records to know where the worker strength lies and tuition support
programs are within the control of human resource department. One essential element of business operations is complying
with the labor and employment laws. When the labor and employment laws is not followed in accordance, it might result in
workplace complaints based on inappropriate employment practices, unsafe working environment and all dissatisfaction with
the working conditions that can affect productivity, likewise the profitability. Human resource department is obliged to know
the federal and state employment laws such as Civic Rights Act, the Labor Standard and many other working rules and
regulations. As it was discussed in the section above, it is essential for any organization that wants to have effectiveness to
possess good human resource management system. The world is changing very fast, as 28 are the people. Based on
research and different studies, it is known that there are some common challenges faced by human resource management
when aiming to get organization effectiveness. These include change management and leadership development. Change
management can be viewed as the ways or techniques used to embrace new processes or system within an organization.
Any companies have fast and new technology which can create op-portunities for firms to perform well, faster, and
cost efficiency. It is important to know that adapt-ing to new technologies can create

challenges within the organization. Teaching every company employee how to use a new machine might be time
consuming. (It is also important that the em-ployees have self studies) sometimes, some employees find it difficult to
adapt to change. Leadership development reaches out more than what can be taken for granted because it increases the
strength or capacity of personnel to act in leadership post within the firm or company. It is important to know that
leadership positions are the backbone of any final decision making or execution of an organization`s strategy through
growing the competencies of others, building cooperation and winning mentality as well as strong team focus. Sometimes
leadership positions intend to be formal, with the corresponding part to take effective actions, decisions and
responsibility, likewise when it is formal, positions are taken with less effective authority. An example of this can be a
member of a team which affects the engagement of the team, reason and direction; and personnel who will pay adequate
attention and negotiate by the means of influence. Many schools of thought have come to the conclusion that leadership
development is an essential element of building business success. A case study is a research study made by the Center for
Crea-tive Leadership, which shows that 65 percent of organizations with effective leadership training or seminars arrived
at excellent results as compared to 6 percent of firms without a program CCL (2016 : 10). When leadership development is
done right, it improves everything in the organization like teams, society and the challenges of the customers.
 2.4 Theories for organizational effectivenes

Over the past decades, research on organizational effectiveness and human resource management has produced different
theories of both organizational effectiveness and human resource management from diverse perspectives. Human
resource management and organizational effectiveness researches concentrate on the analyze of the process of achieving
excellent performance in the business life and this consists of the methods, motives and behavior theories of building more
effective organizations. The foundation and the background of these theories are performance theories which explain the
steady process of organizational effectiveness. Among the theories being considered in this thesis are the Traditional
Human Resource Management Model (S. Gutierrez-Broncano et al), Soft and Hard Models of Human Resource
Management (Catherine TRUSS, 999) The Matching Model of Human Resource Management (Fombrun et al 1984), The
Harvard Model of Human Resource e Management (Beer et al, 1984), The Guest Model (David Guest, 1997), The Warwick
Model (Hendry and Pettigrew of University of Warwick, early 1990s)

2.5 Traditional human resource management mode

This model of human resource management is considered to be practiced by most company managers because they rarely
explicitly state the models used when making decisions and managing their companies. It is ideal to say that managers are
limited creating decisions on the basis of the previously incorporated model (Carolina Machado and J. Paulo Davim 2018, p.
159) the value assigned to the personnel and the concept of the organization makes the model independent. This said
traditional model is made in a unique way to serve as guidelines to the managers in order to protect their motives and
values. It is important to note that this model represents the image of the managers and not the image the company
wanted to portray in reality
 CHAPTER III
OBJECTIVE OF THE STUDY
The main objective of this research study is to identity and understand the impact of Human Resource management
on Employee and organizational performance. For the last ten years, practically every book, article, and speech on
the future of human resources management responsibility in organizations has stressed upon the need for
transformation. It is unanimous that human resource can and should add more value to corporations. The primary
responsibility for providing input, advice, direction, and execution with respect to organizational effectiveness. It is
therefore essential to undertake this research in order to:

● To find out the roles of human resources management

● To find out what makes organizations effectiveness

● To determine whether human resources management truly face challenges.

● To find the various challenges affecting the human resource capital

● To give suggestions on how to overcome the challenges

● To make recommendations based on the findings of the research

 CHAPTER IV
RESEARCH
METHODOLOG

4.1 Data Gathering

Data collection methods consist of two main categories, that is, the primary data and the secondary data.
Primary data is explained to be the information gathered or observed directly from first-hand experience,
which is used to solve problem under research. However, the instrument used for collecting the primary
data for this research was through live interviews and questionnaires. secondary data collected from
textbooks, journals, articles, magazines, annual reports and miscellaneous sources like the internet. In the
process of this research, both primary and secondary data used, it is derived directly from the interviewees.
These interviewees were able to provide perceptions on ´´how and why´´ by reflecting from the personal
experience, encounter, understanding and expertise. The interview was carried out by me and semi-
structured interviews were the main data collection procedure. Semi-structured interview technique allows
the respondents to answer the research questions in depth and it also give them room to express their
views on how they wanted. An open-ended questionnaire was developed and the interviews lasted about
20 to 40 minutes and the interviews provide good understanding into the variable of the model adapted
from the literature. The interviewees gave good responses.
4.2 Importance of the study

The data collected for the study is analysed in a descriptive, more logical
and comprehensive manner. Methods used to analyse the data is Content
analysis method, Narrative analysis and Grounded theory. As the
interviewer I wrote down some vital points and arguments that were
revealed from the interviewees in the process of the interview. The data is
compared and contrasted to some of the literature and the earlier research
studies that have taken place. However, it is essential to note that the
research analysis was analysed based on the response of the interviewees
and it is free from subjectivity because a logical pattern was followed
 4.3 Sample Size

The sample size of the research consisted of 3 respondents, including the top HR manager, line managers and the
employees in the firm. The major reason for considering these three interviewees was to have a balance of scale of
data analysis and the comparison to attain an excellent result.

4.4 Importance of the study

The significance of this study is to examine the challenges of human resources management towards
organizational effectiveness in Vaasa, Finland, to learn how the challenges have impacted both the organization
and its effectiveness. Basically every day, human resources departments have lots of responsibility with an
organization but this study will explain the challenges and how the system can get most out of every employee.
Research had it that in today`s work environment, it is essential to have sound and definite knowledge that an
organization is as good as its workers. Many researchers and scholars have said that an organization most
essential asset is its people. Every organization is a dependent on its employees, therefore the need to make a
study of this topic is essential and it will also serve as a source of literature to industries and various companies
involved in the daily operations of making their organizations effective. Looking into this research, it is important
to know that human resources management is the centre that deals with almost every aspect of a company`s
labor force. This consists of employment, training, motivation, benefits, performance, evaluation, communication,
engagement, administration, payment, retirement and dismissal or discharge of every personnel. Furthermore,
the study serves as a learning platform for entrepreneurs, stakeholders, agencies, companies, individuals and
students to realize effectiveness at the work place. The finding will likewise provide some tactics and strategy for
improving the
at the work place. The finding will likewise provide some tactics and strategy for improving the effectiveness in an
organization through the help of human resources management. The study will add to the body of knowledge which
various researchers have had on challenges of human resources management towards organizational effectiveness in
different ways

4.5 Limitations of the study

The research came with the following limitations

● Access to literature: The existing literatures and journals could not really
emphasize organizational effectiveness but mainly conce
● Unwillingness of respondents to give in-depth information: Unwillingness of the respondents to giving
in depth answers about the company could not be undermined because the topic is sensitive.
● Data collection was not a representation of the country as a whole: It is essential to know that the sample size
was based on one company and three employees, so we cannot generalize the outcome because Finland is a
country of population of around 5.6 mill
● Inadequate time granted for the interview by the respondents: The time being granted for interview was limited and
the interview could not be prolonged because of the company meetings.
● Method: The method mainly used was an in-depth interview, as the study has an exploratory
nature but the respondent did not completely feel comfortable describing the topic to a stranger.

● Challenges of human resources management is a broad topic based on people`s perspective and the
study will focus more on the most crucial element: It is important to know that people have a lot to discuss
regarding human resources management and organizational effectiveness but the willingness to express
their views was limited because of the main focus of the thesis

CHAPTER V
DATA ANALYSIS & INTERPRETATION

Q. Are there any challenges faced by human resources management?

⮚ Yes, there are numerous challenges faced by Human Resource Management. One of our major
challenges is giving our employees the right incentives. Also, there are some external factors that exist in the
outside of the organization that hinder the performance of the company. To mention other factors that
HRM faces are industrial and employee relations, work diversity, retention and succession plan, recruitment
process and availability of experienced workers and technology.
Q. What are the roles of human resources management towards organizational effectiveness?

⮚ Human resources management has a crucial role in maximizing the overall

performance of the organisation by training and motivating the employees through
various incentives and benefits. It also helps in designing the policies or the organization
that helps in maximizing profit.

Q. What are the factors that hinder the success of human resources management when aiming to
achieve organizational effectiveness?

⮚ Poor human resource management and inadequate availability of good talent, less consideration
towards working environment and training to the employees also adaptation to innovation and
various others changes like political and economic factors that hinder the success of a company HRM
in achieving company effectivness
Q. What are the ways to overcome the challenges of human resources management in
maximizing the organizational performance.

⮚ Following are the ways to overcome the challenges: Introduction: It is essential to

introduce the new hire to every group so as to know where it best fits Change
management: It is good to prepare for change in the management, Healthy
competition: Having a healthy competition can boost the attitude to workers Open
communication: give employee freedom to speak up, give feedback, ideas and
grievances if any Involvement: involve the employeesin decision making. Make them
feel part of the company Motivation: One major way to boost organizational
performance is through motivation.

Q. Do management and labour union work together in constructive and strategic

manner?

⮚ Not all companies always try to make sure that its employees are satisfied and give
them all the necessary benefits and holiday according to the law. Labour unions are like
cartels and their major aim is to benefits their members. But the labour union must
work in a constructive and strategic manner and this can have an adverse effect on the
success of the company in the long run
 CHAPTER VI
RECOMMENDATION

Based on the findings in this research, it is recommended that:

● Trade union should safeguard the interests at its member as well as help the management to
maximize their productivity

● The research has shown that a major problem between employees and management
is effective communication

● It is recommended that HR manager with the help of line managers should carry out
recruiting activities so that people with the appropriate skills, attitudes and knowledge are
hired
 CHAPTER VI
CONCLUSION

Achieving organizational effective is possible when the

management knows that the employees are the
representation of the company in front of the
customers. When the employees are satisfied, the
company will reach it maximum level. The mood of one
employee in the group will have an adverse effect on the
productivity of the organization. Healthy competition in
an organization is essential because it boost the morale
of the workers. The outcome of the research is
considered to be successful because the main objective
(What makes organization effective) of the thesis was
achieved and the research question is to know the roles
of human resources management in regards to
organizational effectiveness which was answered.
The key to organizational performance based on this research is
the human resources because it is the representation of the
company in every aspect of the day to day running of business
while the roles of human resources management in regards to
organizational effectiveness is making the organization a
productive and prospering workforce. Labour Union works for
the interest of its members and they do not have the same
interests as the management. Human resource management
concentrates on matching the needs of the business with the
needs and development of the workers. Every worker has a role
to play in the success of a company, and it should be valued.
Based on the employee respondents, it is evident that they
are motivated to work and they respect the management
when their values are respected. The managing also
emphasizes that the management make sure that the
employees are satisfied and the team members are happy
with the group on daily basis.
 CHAPTER VIII
BIBLGORAPHY

● An Introduction to Human Resource Management John

Stredwick · 2013

● Human Resource Management: Issues, Challenges

and Opportunities books

● Chris Rowley, Keith Jackson · 2011

● Human Resource Management: The Key Concepts books

● Research Methods for Human Resource Management

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