ENVIRONMENT OF HRM

OBJECTIVES
Identify the environmental factors that have bearing on HRM

Describe each environmental factors and its impact on HR functions

Environment may be understood as all those forces which have Their Bearing on the functioning on the HR department. The forces are

1.External forces
Political and legal Economic Technological Cultural

2. Internal forces
Unions Organisational cultural conflicts Professional bodies

External forces
Political and Legal:

There are three institutions which together constitute the total political environment. They are -i) the legislature, ii) the executive, and iii) the judiciary.
i) The legislature - The legislature also called Parliament at central level and Assembly at the sate level, is the law making body. ii) The executive The executive popularly known as the govt, is the law-implementing body. The legislature decide and the executive acts.

iii)The judiciary Above this two is the judiciary which has the role of watchdog. The main function of the judiciary to ensure that both the legislature and the executive work within the confines of the constitution and in the public interest.

All HR activities are affected in one way or the other by this political and legal system prevail in the society. .
To be specific, HR planning, recruitment and selection, placement , Training and development, remuneration, employee relations and Separation are conditioned by constitutional provisions.

Economic
Economic environment refers to all those economic forces which have bearing on the HR factor. Suppliers For HR dept, suppliers are those who provide human Resources to an organization. Ex: Consulting firms, training institutes Competitors Competition plays significant role in HR function and Activities. Organization need to groom its employees through well managed HR planning programmes to withstand competition.

Customers Customers have their own influence on companies personal Functions . So everybody in the orgn must endeavour to offer products which gives satisfaction for the money customers pay.

Technology :
Technology plays a vital role in HR functions, in order to make people more intellectual and efficient. With the advent of technology, jobs tend to become more intellectual or upgraded. A job hitherto handled by illiterate or unskilled worker now requires the service of an educated And skilled worker. With the technology up gradation in the orgn job holders will become Highly professionalized and knowledgeable.

Cultural forces :
Culture refers to the complex whole which includes knowledge, belief, art Morales, laws, customs and other capabilities and habits acquired by an Individual as a member of society. Eg: Tata and L& T

Tatas culture Hire the right people and let them free

L & Ts culture They are known for their professional approach

Internal forces
Unions :
A firms personal activities will be influenced by its own unions as well as the unions of other plants.
A trade union may be understood as association of workers or management formed to protect their own individual interest. All HR activities like recruitment, selection, training, compensation are carried out in consultation with union leaders. Eg : The Bokaro steel plant has 68 trade unions. Calcutta Corporation has about 100 trade unions.

Organizational culture and conflict :

Every orgn has its own culture. Organizational culture is a product of all the orgns Features. Organizational culture reflects the past and shapes the future Eg: Objectives can be achieved in several acceptable ways . Means there are usually Multiple paths to objectives. The key to success is picking the path best fits the Organizations culture. There is often conflict between organisational culture and employees attitudes. Conflict arises because of the following dualities. Eg : Personal goal v/s organisational goal Personal ethics v/s organisational ethics Rights v/s duties

Professional Bodies :
The impact of apex body, National Institute of Personal Management ( NIPM). On HR expert is minimal. The NIPM Provides periodic training Programmes, seminars and conferences to HR professionals which they can Implement In their organisations and increase the productivity. NIPM offers post-graduate diploma in personnel management. The diploma is recognized by govt of India For the purpose of recruitment to superior post and Service under the Central government

Thank you
Presented by

Dhaval Bhoir