5 Reasons Why Human Resource Management Is Getting Increasingly Complex

Human resources department meeting with employee in modern looking office
Human resources department meeting with employee in modern looking office

Every process and procedure that involves people who work within a business is subject to the attention of human resource management professionals. This role has become more complex due to changes to the way businesses work as well as the conduct and compliance standards that they are governed by.

These increased demands and challenges make the training and qualifications from programs such as Spring Arbor University’s online MBA with a concentration in Human Resource Development more useful for HR professionals than ever before. Gaining additional knowledge in areas such as strategic human resource management helps HR managers deal with complexities like conduct and compliance standards, offshoring, outsourcing, and a decentralized workforce.


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New Conduct Standards

Today’s workplaces are affected by regulations regarding equality and diversity, discrimination, and data protection. This can be a complex task considering the many aspects that comprise good conduct in the workplace, from accusations of bullying to failure to meet quality standards. Human resource professionals draw up codes of conduct which form part of any recruitment exercise, and more attention is required by employers to standards of conduct than was required in the past.

As more detailed regulations involving Equal Employment Opportunity laws become part of employment, HR professionals need the expertise to be able to advise businesses on conduct standards and issues. Gaining an MBA qualification provides insight into areas such as managing a diverse workforce and ethics and employment law, enhancing their knowledge required to deal with evolving standards.

New Compliance Standards

Changes to legal responsibilities in the workplace are more common today than ever before. In October 2017, The Washington Post reported that more than fifty bills have become law since the inauguration of President Trump, many of which have involved the employment arena, including the revocation of rule that expanded the number of people who could earn overtime pay. Changes such as this, and the upcoming General Data Protection Regulation which is introduced in May 2018, have an ongoing effect on many US and global workplaces.

Having an MBA qualification gives HR professionals extra insight into areas such as change management, which can help with the implementation of compliance changes within a business. It also provides them with the foundations of knowledge needed to seek innovation in human resource management, to assist with the implantation of processes necessary to comply with new rules and regulations.

A Decentralized Workforce

As far back as 2004, Harvard Business School carried a report by Thomas W Malone, considering the potential benefits and challenges of decentralization. In the time since that report was written, many more businesses have chosen to decentralize. This decision brings its own set of challenges for HR managers.

  • How to ensure communication throughout the business is effective and consistent
  • How to retain a workforce by providing a sense of inclusion, including home workers
  • How to ensure policies and procedures are implemented across the organization

Every member of a decentralized workforce needs to be treated in the same manner. It’s up to HR professionals to develop strategic human resource management plans, to ensure that this happens. Receiving the tuition that is involved in gaining an MBA in Human Resource Management helps individuals to do this by dealing with subjects such as HR’s role in the organization and Strategic HR.


Offshoring has become a growing business phenomenon since the early 2000s, as companies have sought to maximize resources by recruiting help abroad. HR managers within a business are involved with every aspect of the offshoring process, from advising on which countries are home to the required expertise to how to transfer business ethics to an offshoring provider.

Ethics is one area which is covered by an MBA in Human Resource Management, as is organizational development. An understanding of both of these areas is essential in helping professionals to deal with the HR challenges of offshoring.


As with decentralization and offshoring, outsourcing presents its own set of challenges. HR managers are involved with ensuring that outsourced services adhere to the same set of standards and rules that apply to other areas off the business. They also need to advise on best practice, to ensure that companies providing outsourced services are subject to all necessary communications.

HR services themselves can be outsourced. This is one innovation in human resource management that require focus from HR managers, in order to ensure that they have a full understanding of the business, and employees, in order to optimize performance. HR’s role within the organization is covered as part of an MBA in Human Resource Management, as well as areas such as ethics and strategic HR, all of which can be extremely useful when dealing with the complexities of outsourcing.

All of these five reasons for the increasing complexity of human resource management can be equally as challenging as each other. This is why it makes sense for professionals to receive additional training and qualifications in an MBA program.


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