Ahsan Ali Shaw

Limited Budget
The main goal of the HR department is to allocate resources and improve the productivity of the entire organization. Some companies have got the limited budget issues, and it would become challenging for the HR management to carry out their operations.
When the HR department has got a limited budget, then HR operations like performance appraisals, recruitment, and others would become difficult. It would cause dissatisfaction and disappointment in employees relevant to their job and resultantly impact the entire organization.
Opportunities of HR
HR Policies
Updating the HR policies and following them over time would help the company to improve its productivity of the company. If the HR department conducts thorough research and development, then it would allow the company to amplify productivity and customer satisfaction levels.
Skilled Labor
The total number of skilled labor is increasing in the market due to the high number of educational institutes. It provides a great opportunity for the HR management to hire skilled professionals in their organization in order to amplify their productivity and growth.
High HR Budget
The core function of the HR department is not to generate profit rather it focuses on the allocation and distribution of the company’s resources. When the HR department has got limited funds, then it creates problems for them. When HR has got greater access to funds and resources, it would allow the company to perform well in the future.
For instance, if HR has got more funds and resources, then they would hire skilled professionals that would amplify the growth and productivity of the company. They can also increase the salaries and benefits of employees based on their performances.
Tech Advancement
The HR department should adopt the available technology and improve the overall efficiency of the organization. AI (artificial intelligence) can greatly help the company to amplify productivity. For instance, virtual reality technology also presents a lot of opportunities and possibilities. Instead of spending funds on the training and development of employees, you can better train them with virtual machines. The HR department could gain a competitive edge in the market by employing technology.
Threats to HR
Data Privacy
People are getting cautious about their data privacy and they have got a right to the protection of their data. It puts a great responsibility on the HR management relevant to the protection of their private data and personal files. For instance, if the company doesn’t comply with the regulation and legislation regarding data privacy, then it would result in the form of heavy lawsuits. Like Meta got to pay a fine of 1.7 million Euros for the complaints of data breaches.