HRM_Environment (1).pptx
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The HRM environment consists of external factors like the social, technological, economic, political, and demographic landscape as well as internal factors within the organization such as its structure, culture, HR systems, and policies. Analyzing this environment helps organizations take a proactive rather than reactive approach to ensure survival. Externally, factors such as the social norms and values, technological advances, economic conditions, political laws and regulations, and demographic shifts can impact HR practices. Internally, the organizational structure, culture, internal policies, and professional bodies that regulate HR functions also influence HRM.
HRM_Environment (1).pptx
- 1. MANAGING HUMAN RESOURCE Lecture 3 (HRM & its Environment)
- 2. HRM ENVIRONMENT The HRM environment consists of the aggregate of the conditions, events and influences which surround and affect the human resource
- 3. WHY ANALYSE ENVIRONMENT? • Helps to become proactive rather than become reactive to the environment • Reactive strategy is useful in stable and competition less environment • Todays environment is dynamic and full of competition and hence proactive approach becomes important to organizations survival
- 5. • Those factors which affect the organizations human resource from outside the organization External • Factors which influence the human resources with in the organization’s boundary Internal
- 6. COMPARISON External Environment • Social & Cultural • Technological • Economic • Political • Demographic • Unions Internal Environment • Organizational Structure • Organizational Culture • HR Systems • HR Policies • Professional Bodies
- 8. SOCIAL & CULTURAL ENVIRONMENT It comprises of 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
- 9. TECHNOLOGICAL ENVIRONMENT Makes the job more intellectual or upgraded Renders workers dislocated if they do not equip themselves to the job Job becomes challenging for the employees who cope with the requirements of technology Technology reduces human interaction at the work place Finally job-holders become highly professionalized and knowledgeable in the job they perform
- 10. ECONOMIC ENVIRONMENT It includes factors such as growth rate, strategy, industrial production, national and per capita incomes, competitions, industrial labour and globalisation. All these forces have significant influence on wage and salary levels. Growing unemployment and reservation in employment also affect the choice for recruitment and selection of employees in organisations.
- 11. POLITICAL ENVIRONMENT Political environment refers to the factors surrounding the power equation, politics, and government laws, rules and regulations. Political environment determines the degree of independence that organizations enjoy in the choice of HR practices.
- 12. POLITICAL ENVIRONMENT CONT….. These factors also have impact over the HRM policies and practices of an organization. HR professionals must stay abreast of legislation and train managers on their responsibilities.
- 13. DEMOGRAPHIC Demographic variables include sex, age, literacy, mobility, etc.
- 14. TRADE UNIONS 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.
- 16. 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.
- 17. ORGANIZATION 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.
- 18. HRM SYSTEMS AND POLICIES •Internal policies and procedures impact HR activities. For example, if the company is committed to promoting from within, HR must ensure employees receive appropriate training and development to be ready for promotion when the time comes.
- 19. PROFESSIONAL BODIES Like other professional bodies, the NIPM as the HR professional body regulates the functions of HR practitioners in India. For this the NIPM has certain code of ethics which the HR practitioners are expected to follow. Thus, professional bodies also influence HR functions of an organization.