Saturday, 17 March 2012

Environment of Human Resource Management | HRM Environment

HRM Environment study notes on Environment of Human Resource Management…


                                                 HRM Environment

HRM Environment :-
Environment of HRM refers to the aggregate of conditions, events and influences that surround and affect it.
following are the The external and internal environment in which the HRM has to function.-

# External Environment :- 
                                        Economic, political, technological and demographic factors include the external environment.


# Internal environment :- 
Internal environment comprises of the factors which affect an organization’s human resources from inside the organization’s boundaries. mission, hr policies, organization culture, hr system etc. are the variable of hr internal environment.


internal environment of hrm


want to know it in detail

A. Internal Environment
i. Business Strategy: A business strategy refers to the competitive efforts and business approaches that managers employ to please customers, compete successfully, and achieve organizational objectives. Some typical business strategies include innovation strategy, quality strategy, cost reduction strategy etc. Different strategy has different implications on HRM practices. For instance, innovation strategy requires investing more on R&D and creative and talented people.
ii. HR Strategy : Influenced by the external environmental forces and the business strategy itself, HR strategy includes the components such as organization’s HR mission, objectives and policies. Obviously, HR mission, objectives and policies have direct impact over HR practices.
iii. Organization Structure: Organization structure determines not only the authority-responsibility relationship but also the number of people required, their skills and competencies. The number of people required, their reporting relationship, skills and competences ultimately influence HR practices such as recruitment, selection, training and development etc.
iv. Organizational Culture: Every organization has its own culture, i.e., shared belief and common way of doing things. Different cultures have different implications to HR practices.
v. Trade Union: Trade unions are voluntary organizations of generally the workers formed to promote and protect their interests through collective actions. Trade unions also influence different HRM practices such as administration of rules, wages and security system etc.

B. External Environment
i. Political Environment: Political environment refers to the factors surrounding to power equation, politics, and government laws, rules and regulations. Political environment determines the degree of autonomy that organizations enjoy in the choice of HR practices. This includes the economic policies, economic dimensions (such as productivity, per capita income, labor costs etc.) and other economic situations. These factors also have impact over the HRM policies and practices of an organization.
iii. Socio-cultural Environment: It comprises the social norms, values, beliefs, attitude towards work hours & work shift, education status etc. All these have significant impact over HR practices such as selection and rewards.
iv. Technological Environment: It comprises the level of technology, technological innovation, technology transfer etc. These factors also influence the HR practices such as training and development in the wake of new technology.

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