Exploring the challenges of human capital management in a global organisation.

Abstract

Human capital is viewed as key asset of the organisation and by effectively implementing the practices of human capital management, Diebold Nixdorf would be able leverage the skillset, knowledge, and experience of its workforce to achieve sustainable competitive advantage again. The aim of this study was to identify the challenges of implementing the practices of human capital management in a global organisation and to determine the measures that can be undertaken to overcome these challenges. The study examines the concepts and elements of human capital management by referencing available literature. The study follows a qualitative methodology approach with purposive sampling. Semi-structured interviews were conducted with eight human resource staff and three line managers via Microsoft Teams. Participants were selected based on their position in the company and their role in human capital management. Participants from Europe and America were chosen for the study. A thematic analysis was used to analyze the data. Many challenges were determined from the data collected from the interview. One of the many key findings of the study is the high attrition rate which had a negative performance impact on the organisation which in turn had impacted the company’s revenue. It was further observed that managers had experienced challenges in managing a geographically diverse workforce due to government legislation and a culturally diverse workforce. The study also discussed other challenges faced by the company in implementing the practices and processes of human capital management and provided recommendations to overcome these challenges, which can also be adopted by other global companies. The study also investigated the impact of human capital management on the performance of the organisation. Furthermore, the study discussed the measures taken to embed human capital management changes in the organisation.