A PROJECT REPORT

ON

“Challenges faced By Human Resource

Management”

AT
SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY

(2022-2023)

“TOWARDS PARTIAL FULFILLMENT OF BACHELOR OF

BUSINESS ADMINISTRATION”

SUBMITTED BY

MR. SAHIL IQBAL PATHAN

T.Y.B.B.A.

(HUMAN RESOURCE

MANAGEMENT)

UNDER GUIDANCE

OF

PROF. MRS.SONAL PUROHIT

MAHATMA GANDHI VIDYAMANDIR’S

PANCHAVATI COLLEGE OF MANAGEMENT &

COMPUTER SCIENCE PANCHAVATI NASHIK-03

1
 MGV’S,

Panchavati College of Management and Computer Science,

Panchavati, Nashik-422003

CERTIFICATE

Certified that the project report entitled “A Study on values and attitude of employees
towards the organization” with special reference to “” Has been successfully completed by
SAHIL IQBAL PATHAN as the partial fulfillment of Bachelor of Business Administration
(B.B.A) under the Savitribai Phule Pune University during the academic year 2022-2023

The work has been assessed by us and we are satisfied that the same is up to standard
envisaged for the same for the level of the course. And that the said work may be presented
to the external examiner.

External Examiner Internal Examiner: H.O.D

2
 ACKNOWLEDGEMENT

It is a great pleasure to me in acknowledging my deep sense of gratitude to all those

who have helped me in completing this project successfully.

First of all I would like to thank Pune University, Pune for providing me an opportunity
to undertake a project as a partly fulfilment of BBA degree.

I would like to thank “”, for providing me an opportunity to work with them and
providing me necessary information about their organization, there operation and providing
guidance in developing my project.

I would like to thank our project guide Prof. Sonal purohit whose valuable guidance
and encouragement at every phase of the project has help to prepare this project
successfully.

Finally, I would like to express my sincere thanks to my family, all the faculties, office
staff, and library staff of Panchavati College of management and Computer Science, Nashik
and friends who helped in some or other way in making this project.

Place: Nashik SAHIL IQBAL PATHAN

Date: / / BBA

(HUMAN RESOURCES MANAGEMENT)

3
 DECLARATION

This is to declare that I, SAHIL IQBAL PATHAN, student of Bachelor of

Business Administration (2022-2023), PANCHAVATI COLLEGE OF MANAGEMENT
AND COMPUTER SCIENCE, NASHIK, have given original data and information to the
best of my knowledge in the project report titled “”under the guidance of our Head
of Department Prof. Laxmi Awate Mam and the partial fulfilment of the recruitment
towards the completion of the said course.

I have prepared this report independently and I have gathered all the
relevant information personally. I have prepared this project for BBA for the year
2021-2022.

I also agree in principle not to share the vital information with any other
person outside the organization and will not submit the project report to any other
university.

Place: Nashik SAHIL IQBAL PATHAN

Date: / / BBA

4
Index
CHAPTER 1. INTRODUCTION
1.1 Background of Study ...........................................................................
1.2 Research problem.................................................................................
1.3 Objectives of the study..........................................................................
1.4 Research Questions .............................................................................
1.5 Importance of the study ........................................................................
1.6 Limitations of the study .........................................................................
1.7 Structure of the study ............................................................................
CHAPTER 2. RESEARCH METHODOLOGY
2.1. Meaning and Definitions
2.2. Research Design
2.3. Sources of Data
2.4. Types of Research
2.5. Sampling Designs and Examples
CHAPTER 3. FINDINGS
3.1. Are there challenges faced by human resources management? ..............
3.2. What are the roles of human resources management towards organizational
effectiveness?
3.3. What are the factors that hinder the success of human resources department when
aiming to achieve organizational effectiveness?
3.4. What motivates to add more to organizational effectiveness?
CHAPTER 4. Conclusion and Findings

5
1 INTRODUCTION
This thesis will cut across different industries, both medium and large industries or
enterprises will be considered. The focus will be on the service industry in Finland. The
thesis is divided into six chapters, i.e. the introduction, theoretical frame work, research
methodology, empirical part, discussion and the conclusion of study. The first chapter will
contain the background of study, research problem, and objectives of study, research
questions, and importance of the study, limitations of study and finally the structure of the
study.

It would be ideal to say there is effective management in Finland and the country is
improving at it on a daily basis, but there is more need for interpersonal relationships within
one organization and between organizations.

It is essential to note that relationship in an organization usually emphasizes two aspects;

namely intra- and inter relationships. When intra- and inter relationships are well managed
or considered in an organization, the organization is viewed to have good organizational
efficiency in attaining its goals and the set objectives.

1.1 Background of Study

Human resources management rose as a definite concept in the mid 1980s as a natural
development of personnel management. Many writers have said that human resources are
the most essential importance factor in development. Human Resources Management
possesses the capacity to increase, maneuver, and manage other element (Gregg Brown,
2018), (R Brown, 2004). The challenges of human resource management towards
organizational effectiveness come from very diverse industries or group of businesses. The
rapidly transforming business landscape means that there are currently human resource
management challenges which will continue in some form for years to come.

Due to the fluctuating economy as well as local and global advancements, there are many
challenges or changes occurring rapidly that affect human resource management towards
organizational effectiveness in a wide range of issues. Based on the research conducted by
PricewaterhouseCoopers (2001), several challenges for human resource management were
revealed.

The challenges of the researched company include change management leader-ship

development, human resources effectiveness measurement, organizational effectiveness,
compensation, staffing,recruitment and availability of skilled local labor, succession
planning, learning and development: retention, of start as well as benefits costs: health and
welfare.

Today, it would be difficult to imagine any organization achieving and sustaining

effectivenesswithout efficient human resource management programs and activities
(Schuler, 2000).

6
Sometimes the size of the company determines the challenges faces by the human
resources management of the company. The topic is broad and many researchers as well as
firms tackle it from different perspectives. The purpose of this research is to find out those
challenges and provides possible solutions to reducing them in order to improve
organizational effectiveness.

The challenges can vary between regions and across the countries depending on the size of
the economy. Human resource management comes with great responsibility, and the
effective management of people issues is a responsibility that lies at the heart of any
successful organization. The important of human resource management in organization
effectiveness in Finland cannot be overlooked as it helps the organizations to managing
human resource capital to the maximum as well as having maximum productivity of the
seeker impractical project.

However, the restrictions of the recession in the years are not yet over, lots of organizations
are recognizing that they will need to take rational steps to retain their existing work-force.
Steps like engaging in programs, investing in areas that will optimize expenses or through
increased emphasis on training such as integrated technology system that can improve the
employee attraction.

1.2 Research problem

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 10 measurement, organizational effectiveness,
compensation, staffing: recruitment and availability of skilled local labor, succession
planning, learning and development.

1.3 Objectives of the study

For at least 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 imminently 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 organization effectiveness cannot be ignored. It is therefore
essential to undertake this research in order to:

• To determine whether human resources management truly face challenges.

• To find out the roles of human resources management.
• To find out what makes organizations effectiveness.
• To give suggestions on how to overcome the challenges.

7
 • To make recommendations based on the findings of the research.

1.4 Research Questions

The study which aims to evaluate the challenges of human resources management is
motivated by the following questions: The main research question is to know the roles of
human resources management affecting organizational effectiveness. In addition, some
other questions will be discussed.
• Are there challenges faced by human resources management?
• What are the roles of human resources management in organizational effectiveness?
• What are the factors that hinder the success of human resources department when
aiming to achieve organizational effectiveness?
• What motivates you to add more to organizational effectiveness?

1.5 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 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.

1.6 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 concentrated on human resources management
• 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.

8
• 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 million
people
• 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.
1.7 Structure of the study
The study which intends to evaluate the challenges of human resources management
towards organizational effectiveness is structured into five different sections starting with
the introduction. Also, covered in this chapter is the general background of study, research
problem, objectives of the study, the research questions, importance of study, and also the
limitations of the research. The second section reviews both the theoretical and empirical
part of the materials and work related to the research. It explains the definition of human
resources management and organizational effectiveness, human resources management
theories and motives of achieving organizational effectiveness in Vaasa, Finland. Section
three explains the research methodology in details used in the study. Itincludes the various
data sources, the research framework and methods used in collecting the research data
likewise the validity and reliability of the research. In section four, the data collection is
introduced with analysis, discussions of the findings and the presentation of data gathered
from the survey respondents. Lastly, section five presents the discussions, findings,
summary, conclusions, and recommendations of the research

9
CHAPTER 2
RESEARCH METHODOLOGY
2.1 What is research methodology?
Research methodology simply refers to the practical “how” of any given piece of research.
More specifically, it’s about how a researcher systematically designs a study to ensure valid
and reliable results that address the research aims and objectives.
For example, how did the researcher go about deciding:
• What data to collect (and what data to ignore)
• Who to collect it from (in research, this is called “sampling design”)
• How to collect it (this is called “data collection methods”)
• How to analysis it (this is called “data analysis methods”)
In a dissertation, thesis, academic journal article (or pretty much any formal piece of
research), you’ll find a research methodology chapter (or section) which covers the aspects
mentioned above. Importantly, a good methodology chapter in a dissertation or thesis
explains not just what methodological choices were made, but also explains why they were
made.
In other words, the methodology chapter should justify the design choices, by showing that
the chosen methods and techniques are the best fit for the research aims and objectives,
and will provide valid and reliable results. A good research methodology provides
scientifically sound findings, whereas a poor methodology doesn’t. We’ll look at the main
design choices below.

Research design is a plan to answer your research question. A research method is a

strategy used to implement that plan. Research design and methods are different but
closely related, because good research design ensures that the data you obtain will help you
answer your research question more effectively.

10
2.2 What are the main sampling design approaches?
As we mentioned earlier, sampling design is about deciding who you’re going to collect your
data from (i.e. your sample). There are many sample options, but the two main categories
of sampling design are probability sampling and non-probability sampling.
Probability sampling means that you use a completely random sample from the group of
people you’re interested in (this group is called the “population”). By using a completely
random sample, the results of your study will be generalisable to the entire population. In
other words, you can expect the same results across the entire group, without having to
collect data from the entire group (which is often not possible for large groups).
Non-probability sampling, on the other hand, doesn’t use a random sample. For example, it
might involve using a convenience sample, which means you’d interview or survey people
that you have access to (perhaps your friends, family or work colleagues), rather than a truly
random sample (which might be difficult to achieve due to resource constraints). With non-
probability sampling, the results are typically not generalisable.

What are the main data collection methods?

There are many different options in terms of how you go about collecting data for your
study. However, these options can be grouped into the following types:
• Interviews (which can be unstructured, semi-structured or structured)
• Focus groups and group interviews
• Surveys (online or physical surveys)
• Observations
• Documents and records
• Case studies
The choice of which data collection method to use depends on your overall research aims
and objectives, as well as practicalities and resource constraints. For example, if your
research is exploratory in nature, qualitative methods such as interviews and focus groups
would likely be a good fit. Conversely, if your research aims to measure specific variables or
test hypotheses, large-scale surveys that produce large volumes of numerical data would
likely be a better fit.

11
2.3 What are the main data analysis methods?
Data analysis methods can be grouped according to whether the research is qualitative or
quantitative.
Popular data analysis methods in qualitative research include:
• Qualitative content analysis
• Thematic analysis
• Discourse analysis
• Narrative analysis
• Grounded theory
• IPA
Qualitative data analysis all begins with data coding, after which one (or more) analysis
technique is applied.
Popular data analysis methods in quantitative research include:
• Descriptive statistics (e.g. means, medians, modes)
• Inferential statistics (e.g. correlation, regression, structural equation modelling)
Again, the choice of which data collection method to use depends on your overall research
aims and objectives, as well as practicalities .

Sources of Secondary Data

Sources of secondary data include books, personal sources, journals, newspapers,
websitess, government records etc. Secondary data are known to be readily available
compared to that of primary data. It requires very little research and needs for manpower
to use these sources.
With the advent of electronic media and the internet, secondary data sources have become
more easily accessible. Some of these sources are highlighted below.

• Books

Books are one of the most traditional ways of collecting data. Today, there are books
available for all topics you can think of. When carrying out research, all you have to do is
look for a book on the topic being researched, then select from the available repository of
books in that area. Books, when carefully chosen are an authentic source of authentic data
and can be useful in preparing a literature review.

• Published Sources

There are a variety of published sources available for different research topics. The
authenticity of the data generated from these sources depends majorly on the writer and
publishing company.

12
Published sources may be printed or electronic as the case may be. They may be paid or free
depending on the writer and publishing company's decision.

• Unpublished Personal Sources This may not be readily available and easily
accessible compared to the published sources. They only become accessible if the
researcher shares with another researcher who is not allowed to share it with a third
party.

For example, the product management team of an organization may need data on customer
feedback to assess what customers think about their product and improvement suggestions.
They will need to collect the data from the customer service department, which primarily
collected the data to improve customer service.

• Websites
The information shared on websites is mostly not regulated and as such may not be trusted
compared to other sources. However, there are some regulated websites that only share
authentic data and can be trusted by researchers.
Most of these websites are usually government websites or private organizations that are
paid, data collectors.
• Blogs
Blogs are one of the most common online sources for data and may even be less authentic
than websites. These days, practically everyone owns a blog, and a lot of people use these
blogs to drive traffic to their website or make money through paid ads.
Therefore, they cannot always be trusted. For example, a blogger may write good things
about a product because he or she was paid to do so by the manufacturer even though
these things are not true.
• Diaries
They are personal records and as such rarely used for data collection by researchers. Also,
diaries are usually personal, except for these days when people now share public diaries
containing specific events in their life.
A common example of this is Anne Frank's diary which contained an accurate record of the
Nazi wars.
• Government Records
Government records are a very important and authentic source of secondary data. They
contain information useful in marketing, management, humanities, and social science
research.
Some of these records include; census data, health records, education institute records, etc.
They are usually collected to aid proper planning, allocation of funds, and prioritizing of
projects.
• Podcasts
Podcasts are gradually becoming very common these days, and a lot of people listen to
them as an alternative to radio. They are more or less like online radio stations and are
generating increasing popularity.
Information is usually shared during podcasts, and listeners can use it as a source of data
collection.

13
How to Analyse Secondary Data
There are different stages of secondary data analysis, which involve events before, during,
and after data collection. These stages include;
• Statement of Purpose
Before collecting secondary data for analysis, you need to know your statement of purpose.
That is, a clear understanding of why you are collecting the data—the ultimate aim of the
research work and how this data will help achieve it.
This will help direct your path towards collecting the right data, and choosing the best data
source and method of analysis.
• Research Design
This is a written-down plan on how the research activities will be carried out. It describes
the kind of data to be collected, the sources of data collection, method of data collection,
tools, and even method of analysis.
A research design may also contain a timestamp of when each of these activities will be
carried out. Therefore, serving as a guide for the secondary data analysis.
After identifying the purpose of the research, the researcher should design a research
process that will guide the data analysis process.
• Developing the Research Questions
It is not enough to just know the research purpose, you need to develop research questions
that will help in better identifying Secondary data. This is because they are usually a pool of
data to choose from, and asking the right questions will assist in collecting authentic data.
For example, a researcher trying to collect data about the best fish feeds to enable fast
growth in fishes will have to ask questions like, What kind of fish is considered? Is the data
meant to be quantitative or qualitative? What is the content of the fish feed? The growth
rate in fishes after feeding on it, and so on.
• Identifying Secondary Data
After developing the research questions, researchers use them as a guide to identifying
relevant data from the data repository. For example, if the kind of data to be collected is
qualitative, a researcher can filter out qualitative data.
The suitable secondary data will be the one that correctly answers the questions highlighted
above. When looking for the solutions to a linear programming problem, for instance, the
solutions will be numbers that satisfy both the objective and the constraints.
Any answer that doesn't satisfy both, is not a solution.
• Evaluating Secondary Data
This stage is what many classify as the real data analysis stage because it is the point where
analysis is actually performed. However, the stages highlighted above are a part of the data
analysis process, because they influence how the analysis is performed.
Once a dataset that appears viable in addressing the initial requirements discussed above is
located, the next step in the process is the evaluation of the dataset to ensure the
appropriateness for the research topic. The data is evaluated to ensure that it really
addresses the statement of the problem and answers the research questions.
After which it will now be analyzed either using the quantitative method or the qualitative
method depending on the type of data it is.

14
2.4 Type of Research
The whole data collected in the report is secondary because of the pandemic issue we are
not allowed to collect primary data of the organization

What is Secondary Data?

Secondary data is the data that has already been collected through primary sources and
made readily available for researchers to use for their own research. It is a type of data that
has already been collected in the past.
A researcher may have collected the data for a particular project, then made it available to
be used by another researcher. The data may also have been collected for general use with
no specific research purpose like in the case of the national census.
Data classified as secondary for particular research may be said to be primary for another
research. This is the case when data is being reused, making it primary data for the first
research and secondary data for the second research it is being used for

15
2.5 Sampling Desigins and Example

What is Sample Design?

A sample design is a definite plan for obtaining a sample from a given population. It refers to
the technique or the procedure the researcher would adopt in selecting items for the
sample.

Steps in Sample Design:

• Type of Universe
• Sampling Unit
• Sampling Frame
• Size of Sample
• Budgetary Constraints
• Sampling Procedure

Characteristics Of A Good Sample Design

• Sample design must result in a truly representative sample
• Sample design must be such which results in a small sampling error
• Sample design must be viable in the context of funds available for the research study
• Sample design must be such so that systematic bias can be controlled in a better way
• Sample should be such that the results of the sample study can be applied, in general, for
the universe with a reasonable level of confidence

Types of Sample Design

• Probability Sampling Design
• Each element/respondent has a known probability of being included in the sample.
• Non-probability Sampling Design
• Each element/respondent in the population is not given equal chance of selectio

16
CHAPTER 3 FINDINGS

3.1. Are there challenges faced by human resources management?

Yes, 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 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. 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

17
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.

18
3.2. What are the roles of human resources management towards organizational
effectiveness?
The roles of HRM towards organizational effectiveness are numerous but in the process of
this interview analysis, some core points were mentioned and explained to the researcher.

It is essential to know that HRM holds the central of Famkro Oy and we do have great
respect for that, we make employees feel part of the company, that is, without them there
is no Famkro Oy. Our employees can make the company reach it apex level as well as going
bankruptcy. With the help of every employee, Famkro can be effective in its profitability,
achieving of its mission, vision and goals as well as having reputable image in the eyes of the
customers and the public.

In Famkro Oy, we try our best to have our employees as long as possible because when they
spend years together, they get to know eachother well and the work becomes easier. The
success of Famkro Oy depends solely on its managing style, attracting and retaining the
employees. Our HRM priority is aptitude management and we give room for individual
development, including training, checking, discussing, mentoring, encouraging, motivating,
coaching, projects and technical support. Flexibility at work, financial incentives, team work,
support of career plans are the approaches that Famkro Oy adopted and put in place for its
HRM department.

Performance management: Performance management at Famkro Oy is taken seriously and

it is a vital component in the systematic and strategic processes of its HRM. When a new
employee is added, the worker will be put to work together with the group so as to know
how the person works and if the new employee will fit in to the company system. The
information or feedback gotten from the group will determine the progress of the new
worker. There is also performance appraisal, the information gotten from this helps in
recruiting, training, and development of the existing staff and maintaining high level work
force by properly rewarding their performance. Famkro Oy management believes that
without a reliable performance appraisal system, their human resources system
would result in a failure and would crash down.

Knowledge management: Personal relationship and shared visions are the main focus in the
information system; we get to have effective knowledge of our employees and their attitude
to work by given them appropriate incentive structure
Famkro try the possible best have the right people in the right place with the right attitude
and behavior, employees are exposed in the right ways to work, and should have the right
mix of skills.
Human resources play a vital role in the day to day success of an organization. When human
resource management performs its duty well, the organization will experience growth and if
human resource not performed well, the company will face a fall in revenue. Human
resources are known to be the back bone of any organization. Due to this the roles of
human resources management aiming at organization effectiveness cannot be
overemphasis from handling the recruitment process of a company to making sure that only

19
the best are employed to the organization. Motivating the workers with good working
incentives as well as promoting healthy competition among the employees will be put into
consideration.
Human resources management also helps in the key decision making of the company such
as organizing promotion, examinations and, selecting those that are in need of training and
those that will be disciplined. Effective management is a major role of HRM in achieving
organizational effectiveness that is, in managing people within the organization.

Also, contributing to the company is a major way the HRM achieve organization
effectiveness.When the company wishes to look beyond wages for operational duties, profit
sharing schemes, company shares bonuses, paid work leave etc are ideas and roles of
human resource management towards organizational effectiveness.

The role of HRM is to make sure that there is good relationship in places of employment and
anything that affects those relationships in a positive or a negative way. It is essential for
any company that wants organizational effectiveness to ensure the satisfaction of
employees with the conditions of their employment. HRM is a change to provide support to
company employees and assist them in improving their performance. It also solves any
problem that arises amicably. Getting better results and achieving organizational
effectiveness is a major role of HRM. It will make sure that there are better results from the
company workers. When the HRM has a unique way of executing it plans, a company will
have a competitive advantage over it competitors.

20
3.3. What are the factors that hinder the success of human resources department when
aiming to achieve organizational effectiveness?

Poor human factor management and inadequate consideration are the major factors that
hinder the success of a company HRM in achieving company effectiveness. At Famkro Oy,
the management pays attention to the mood of every employee. Sometimes this might
looks strange but that is what it is, the mood of one employee in Famkro affects all other
workers because they work together as a team. For example, if one employee is pressing a
phone and not concentrating on work, others might feel cheated and it will also affect their
mood thereby reducing the company productivity.

When a worker does not have clear view of the future, it affects his/her attitude to work. Of
course, everyone wants to be sure of what lies ahead so as to be able to make necessary
plans.

The employee wants to have the trust of the company and if this is not so, the employee is
not certain when it comes to making decision in the time of urgency. It is essential to have a
set of rules and guidelines but in some cases, there must be some amendments. For
example, if an employee has an urgent family issue to attend but the management refuses
to give out holiday at that time; this will affect the mood of the worker as well as
productivity.

When discussing the factors that hinder the success of HRM in achieving organizational
effectiveness, there are numerous factors to be considered but based on experience a major
hindrance is government interference in the affairs of the company.

For example, in the process of recruitment, the law will be taken into consideration with
issues like gender, religion, local content, etc and all these criteria can hinder human
resource management in achieving it goals. Some people might be qualified but the criteria
will exclude them and in the long run, it will have an adverse effect on the company.

Additionally, lack of good communication system between the management and employee
can hinder the success of the business.

When the employees are not satisfied with job situation, it will hinder the productivity and
the company might lose its customers if the organization cannot meet up with demand.

Change is a constant thing and when the HRM is not prepared for change and it happens, it
can cause great damage to the management. Also, it is important to know that no matter
how the management prepares for change, it will always be felt.

HRM outsourcing is believed to the process of sub-contracting human resources activities to

a third party usually external. Outsourcing keeps the cost low but it keeps the company
unprotected and can cause loss of control over the business. When management does not

21
address the employee expectations well, it will hinder the organizational effectiveness.

Balance in work and life is an essential aspect of a healthy work environment and if not well
administed to, it will hinder the success of the organization. When there is balance between
work and life, it reduces stress and makes employees better at work. There are various ways
of promoting the balance of work and life which include:

• Asking the employees about their situation

• Keeping a close eye (monitoring) on their mood
• Embracing flexibility
• Encouraging efficient work for all
• Educating on health related initiatives

22
3.4. What motivates to add more to organizational effectiveness?

These are some of the things that motivate or encourage employee

• Seeing that I have a future with the company in question

• Ability to create and be innovative towards the organization productivity
• Salary, but it is not the main thing
• Constructive feedback and support from the management
• Feeling that I am part of the company and I have roles to play on daily basis
• Motivational words and incentives
• Good incentives
• Constructive feedback
• Involvement in the company success
• Team working, salary and bonuses
• Health care
• Future assured
• Learning new things
• Feeling part of the success of the organization
• Mentoring and coaching others
• Analyzing complex data
• Doing well on individual task
• Working well in the team or on group task.

23
CHAPTER 4 CONCLUSION AND FINDINGS

The roles of human resources management should not be taken for granted because it
makes or breaks the company. Any organization that wants to achieve organizational
effectiveness must not neglect it human capital.

Having the right people and developing them to get the maximum productivity is something
every organization must put in place and make sure that this is being followed up with
regular checks from the top management.

Every organization can achieve its goals towards effectiveness if the employees are satisfied,
valued and respected by the management.

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 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.

Finally, the findings may not be the representation of the whole data Finally, the findings
may not be the representation of the whole data.

24