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Environment of hrm

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This document discusses the environment of human resource management (HRM) and analyzes various internal and external forces that impact HRM. It identifies key external forces like political-legal, technological, cultural, and economic factors. Important internal forces include unions, organizational strategy/tasks/leadership, and culture/conflicts. Analyzing these environmental forces helps HRM departments proactively adapt to changes in the competitive environment rather than reacting passively.

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Environment of HRM • Environment of HRM includes all those factors which have bearing on the functioning of HR department. • These forces can be divided in two categories, i.e. External Forces and Internal Forces. 1
Utility of Analyzing the Environment • To become proactive and not remain reactive to the environment. • Reactive strategy are useful in stable and competition less environment. • Today’s environment is characterized by intense competition and change where proactive steps are vital to survive. 2
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Environmental Forces External Forces Internal Forces • Political-Legal • Unions • Technological • Strategy, Task & Leadership • Cultural • Organizational • Economic culture & conflict • Professional Bodies 4
Political-Legal Forces • Plethora of Labour laws related to employment, working conditions, pay & wages, and laws related to industrial disputes. • Which political party is ruling. Different parties can have a different outlook. 5
Economic forces • Economic growth, industrial production, agriculture, population, national and per capita income, money and capital markets, suppliers,competitors,customer & industrial Labour are the components of economic environment. • Economic forces relevant to HR:  Suppliers  Competitors  Customers  Economic growth  Industrial Labour 6
Technological • Jobs tend to be more intellect. • Obligation of HRM to train workers acc. to new technology and to rehabilitate those who can not be trained. • Workers acquaint with new technology are more demanding. • Technology has impact on human relations. • Job holders have become highly professional and knowledgeable. 7
Cultural Forces • Culture refers to complete whole which includes knowledge, belief, art, morals, laws, customs, and other capabilities & habits acquired by an individual as a member of society. 8
Strategy, task & leadership • Alignment between the strategy, structure, people, and management is important for organization’s success. • Nature of task/ job also affects HR in terms of hiring, compensation, training etc. • Leader also impact any of function area of organizations. 9
Unions • Unions are considered a part of internal as well as external force in an organization due to its affiliation from outside political parties. • Unions have influence on all HR activities right from hiring to separation. 10

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Environment of hrm

  • 1. Environment of HRM • Environment of HRM includes all those factors which have bearing on the functioning of HR department. • These forces can be divided in two categories, i.e. External Forces and Internal Forces. 1
  • 2. Utility of Analyzing the Environment • To become proactive and not remain reactive to the environment. • Reactive strategy are useful in stable and competition less environment. • Today’s environment is characterized by intense competition and change where proactive steps are vital to survive. 2
  • 3. 3
  • 4. Environmental Forces External Forces Internal Forces • Political-Legal • Unions • Technological • Strategy, Task & Leadership • Cultural • Organizational • Economic culture & conflict • Professional Bodies 4
  • 5. Political-Legal Forces • Plethora of Labour laws related to employment, working conditions, pay & wages, and laws related to industrial disputes. • Which political party is ruling. Different parties can have a different outlook. 5
  • 6. Economic forces • Economic growth, industrial production, agriculture, population, national and per capita income, money and capital markets, suppliers,competitors,customer & industrial Labour are the components of economic environment. • Economic forces relevant to HR:  Suppliers  Competitors  Customers  Economic growth  Industrial Labour 6
  • 7. Technological • Jobs tend to be more intellect. • Obligation of HRM to train workers acc. to new technology and to rehabilitate those who can not be trained. • Workers acquaint with new technology are more demanding. • Technology has impact on human relations. • Job holders have become highly professional and knowledgeable. 7
  • 8. Cultural Forces • Culture refers to complete whole which includes knowledge, belief, art, morals, laws, customs, and other capabilities & habits acquired by an individual as a member of society. 8
  • 9. Strategy, task & leadership • Alignment between the strategy, structure, people, and management is important for organization’s success. • Nature of task/ job also affects HR in terms of hiring, compensation, training etc. • Leader also impact any of function area of organizations. 9
  • 10. Unions • Unions are considered a part of internal as well as external force in an organization due to its affiliation from outside political parties. • Unions have influence on all HR activities right from hiring to separation. 10