HRM & ITS ENVIRONMENT

External Forces
Political- Legal Economic Technological Cultural Forces

Internal Forces
Strategy, Task & Leadership Unions Organizational Culture & Conflict Professional Bodies

Political-Legal: the political environment covers the impact of political institutions on the HRM deptt. There are three institutions which together constitute the total political environment. They are1.The legislature, i.e., Parliament & Assembly

2.The Executive, i.e., Government

3.The Judiciary, i.e., Supreme court & High Court

Economic: It refers to all those forces which have a

bearing on the HR function, like, economic growth,
industrial production, agriculture, population, national & per capita income, money & capital markets, suppliers, competitors, customers, industrial labor & globalization.

Suppliers Competitors Customers Economic Growth Industrial Labor Diversity Impact of Globalization

Technological: It affects the HR function in following ways1. job tend to become more intellectual or upgraded. 2. to train workers & to rehabilitate those who are displaced or cannot be trained. 3.Increased productivity, reduced prices & increased real wages. 4.It impacts on human relation. 5.Job-holders become highly professionalized & knowledgeable.
More specifically, the main use of technology in HRM is an organizations HRIS.

Cultural Forces: Culture refers to the complex whole which includes knowledge, belief, art, morals, laws, customs & other capabilities & habits acquired by an individual as a member of a society. Culture creates the type of people who become members of an org. The attitude of workers towards work is the result of their cultural background. Time dimension, which influence HRM, has its roots in culture. Work ethics, achievement needs & effort-reward expectations are the results of culture. Culture makes people confine themselves to certain occupations and regions.

Strategy, Task and Leadership: A strategy indicates the direction in which an organization moves. It takes the org into the area of competition in environment and into alignment with the resources of the firm. Task is a work that an employee holds to do. It has implications on employee motivation & satisfaction. Leadership involves catalyzing the learning process among followers, as well as creating the environment that contributes to improving performance.

Unions: It is an association of workers and management formed to protect their own individual interests. All HR activities- recruitment, selection, training, compensation, IR and separation- are carried out in consultation with union leaders.

Organizational Culture & Conflict: Org culture is the product of all the orgs features- its people, its successes and its features. It reflects the past and shape the future. Get the best people and set them free. - J. R. D. Tata Conflict between org culture and employees attitudes.

Professional Bodies- National Institute of Personnel Management, Society of Human Resource Management.