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In the current economic climate, Productivity, Innovation and Efficiency are the main determinants for the growth of any organization. To achieve these determinants organizations focus on the most important factor,”People Management”.


There are various challenges the organizations are facing and the challenges pertaining to people are given wider attention as an organization cannot sustain or survive if it overlooks the challenges faced by its workforce.


Organizations must sail through the hardships of a complex global economy, and position themselves to attract and retain the workers they will need on this journey. Companies will face several challenges from both the future workforce and from the changing nature of work itself. As a result, people managers will need to get ahead of the match by understanding these major future demographic, technological and societal shifts, and then prepare themselves accordingly.


Varying demographic changes across the developed and developing world will place greater pressure on both the government and private sector to initiate and implement creative solutions to educate, integrate and retain a rapidly changing and diverse working population.

The rapidly transforming business landscape means that there are currently many people management challenges which will continue to evolve for years to come.


Companies are beginning to realize the business imperative of hiring efficiently and creating an equitable work environment. Therefore the need to build skills and competencies, and freedom and empowerment are the topmost priorities for the organizations followed by recognition and appreciation to effectively manage people. 

Businesses also needs to be able to measure results in terms of positive influence on business. Utilizing metrics to determine effectiveness is the beginning of a shift from perceiving people management’s role as an administrative function to viewing it as a strategic partner within the organization.

Managing people effectively is key to business success, not just because it makes for good corporate policy, but because it results in outstanding performance and profits.

The major challenges in People Management are:

  • Change Management

  • Leadership Development

  • People Effectiveness Measurement

  • Retaining and Engaging a Changing Workforce

These are often impacted by:


  • Government Regulation

  • Technological Changes

  • Employee Relations

  • Compensation and Benefits

  • Performance Management and

  • Environmental Issues. 

Overcoming these challenges with determined solutions holds the key for the growth of any organization.

People management departments have traditionally focused on measuring their own effectiveness, there is an evolving recognition that they can provide organizational value by measuring the effectiveness of the entire business organization.

There is merit in much-needed guidance for managing people more wisely and more profitably .

Even the smartest managers sometimes manage people unwisely and market-based forces can fail to create good people management practices, creating a need for implementing a positive policy with practical adaptability and implementing high-performance management practices. This provides a series of challenges for:

  • Creating a people management system designed for and used by business organizations—its executives, owners and managers

  • Researching the working, adult population—for they are the next Top Performer within your organization, and

  • Delivering results quickly, reliably and as accurately as possible
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