PPHRM

1. INSTITUTE OF ACCOUNTANCY ARUSHA (IAA)
DODOMA CAMPUS
PROGRAMME: MASTER OF SCIENCE IN HUMAN RESOURCES MANAGEMENT
MODULE NAME: HRM-PRINCIPLES AND PRACTISES OF HUMAN RESOURCES
MANAGEMENT
MODULE CODE: HRG09102-2022/23
LECTURER NAME: MR. PETER THOMAS
TASK: GROUP NO. 9 ASSIGMENT -
GROUP MEMBERS
S/N NAME REGISTRATION MEMBER
1 ALLY HENRY MAPUGA MHRM-04-0001-2022
2 SEKELA JIMMY SWEBE MHRM-04-0010-2022
3 MWASIMBA MUSTAPHA BOGE MHRM-04-0028-2022
QUESTION: FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT

2. CONCEPT OF HUMAN RESOURCE MANAGEMENT
Human Resource Management may be defined as a set of policies,
practices and programmes designed to maximize both personal and
organizational goals. It is a process of binding people and organizations
together so that the objectives of each are achieved.
According to National Institute of Personnel Management of India
“Human Resource Management is that part of management concerned
with people at work and with their relationship within the organization. It
seek to bring together men and women who make up an enterprise,
enabling each to make his own best contribution to its success both as
individual and as a member of a working group”

3. Human Resource Management is the most significant aspect of any enterprise since it involves effective management of
the employee’s in the organization but it faces several challenges or impediments to its progress and these impediments
can be grouped into categories as follows;
A. Internal Factors these are the factors found within the organization context as described below;
i. Organisation Financial Position/Size of the Firm
Organisation financial positions affects Human Resource Management practices particularly those having
substantial financial implications; such as ability to pay wages and salaries, funds for retaining HR are affected
by an Organisations financial positions and its cash flows. Therefore, when financial difficulties is experienced,
the axe falls first on employees this evidenced by substantial employees layoff during the economic slow downs.
On the other hand, the size of the firm has two key reasons why one can find a positive relationship between
firm size and formalization of HRM practices: First, if organizations become larger, the need to decentralize and
communicate between employees and departments increases. This, in turn, requires a certain level of
standardization, specialization and formalization of HRM (Noote boom, 1993). Second, most formalized HRM
practices require considerable development costs (Klaas et al., 2000). This results in a cost advantage for larger
firms, as compared to many small firms. Therefore as a manager cost benefit analysis is crucial deciding the
size of the firm and formalization of human Resources practices.
FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT – Internal factors

4. FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT – Internal factors Cont..
ii Organizational Culture
Today’s organization is predominantly dynamic this create a large
opportunities and challenges to the corporate practitioners and policy
makers. Understanding such dynamism is very crucial to pursue the
organizational strategic objective. Organizational culture adaptation
takes time to cope with the dynamic changes and meet demands of
the organization in its quest for gaining competitive advantage in all its
activities.
Therefore, a supportive culture as noted by Ritchie, (2000) is
considered as a motivational instrument which promotes the
organization to perform smoothly and ensure success in all its
endeavors. A negative organizational culture kills human resource
practice.

5. FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT – Internal factors
ii Organizational Culture – Cont…
There are two elements that of organization culture
High performing culture;
• HR practices are intricately linked to the Strategic Management of the Organisation.
• HR is treated as strategic Resource.
• HR functions establishes business partnership with line Managers who have a direct
interest and involvement in delivering Human Resources.
• Focus is on growing new managers internally by promotion from within. (Training
and Development is given importance).
• Based on person rather than the job – performance appraisal is frequent and it is
done by multi-raters.
While in Low performing culture is has the opposite.

6. FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT – Internal factors Cont..
iii Trade Union
Since employees in the organization are members of Trade Unions,
Trade unions affect recruitment of employees, their development,
compensation, maintenance and industrial relations.
Generally, agreement between management and labour is reached
through collective bargaining. If the Trade Union is in relatively better
bargaining position, outcome of the collective bargaining goes in its
favour in such situations the organization has to adopt Human
Resource Management practices according to the wish of the Trade
Union.

7. FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT external factors
B) External factors these are the factors emerged outside the organization context and may
include the followings
i. Government Regulations the introduction of new workplace compliance standards may
affect Human Resource Practices as the Human Resource Department may be required
to comply with laid down standards and failure to comply may lead to legal proceedings
like fine and penalties which sometimes can affect organizational operations. These
regulations mostly affects the processes of hiring, training, compensation, treatment of
employees (Gender equity and Non-discrimination) and even termination.
ii. Technological Advancements Introduction and implementation of new technology may
affect human resource management in the organization since every aspect of human
resource functions will need to be automated and may lead to deploying of employees in
the process of cost reduction.
Technological advancement affects the nature of the jobs for instance it may increase
service delivery; improve HR practices for instance Recruitment and hiring; enhance
communication between Managers and other staff and monitoring of employee
(surveillance).

8. FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT external factors Cont..
iii Economic Conditions – One of the biggest external influences is the shape of the
current economy. Not only does it affect the talent pool, but it might affect ability to
hire anyone at all. One of the biggest ways to prepare against economic conditions
is to not only know what’s happening in the world around you, but also create a plan
for when there is an economic downturn.
Entities that dictate how economies affect Human Resource Management include;
Population, workforce market (skills and qualifications available, commuting, other ),
National income and inflation).
iv Workforce Demographics – As the Older workforce exit from the employment the
young age enter the employment therefore the Human Resource Department should
find plan to attract and retain these young age since they have several demands
(create a conducive working environment for both so as to maintain business
continuity (succession plan).

9. FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT – other factors
Apart from the internal and external factors there are some other factors
affecting Human Resource Practices as;
i. Education and Research Institutions has failed to develop Professional
Values and Altitudes required in the changing environment hence the
labour market lack the required Skills.
ii. Human resource functions has failed to attract the most talented persons
due to low pay scales and lack of job satisfaction especially in Non-Profit
Organization (Government Institutions).

10. FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT – other factors
Apart from the internal and external factors there are some other factors
affecting Human Resource Practices as;
i. Education and Research Institutions has failed to develop Professional
Values and Attitudes required in the changing environment hence the
labour market lack the required Skills.
ii. Human resource functions has failed to attract the most talented persons
due to low pay scales and lack of job satisfaction especially in Non-Profit
Organization (Government Institutions).

11. Conclusively, since it has been noted that high involvement of
Human Resource Practices has a positive impact on
organization performance, attention should be paid to all
factors (Internal and external) which affect Human Resource
Management as they are more likely to affect the performance
and achievement of the organizational objective and proper
procedures should be followed to avoid lawsuits and
sanctions. Therefore, Human Resource Management is said
to be more than hiring and firing.

12. THANKS FOR LISTENING
Q&A

13. REFERENCES
C.B. Gupta Human Resource Management Text and Cases
Zheng. G & Morrison. M, (2009). Enhancing Chinese SME performance
through innovative HR practices. Personnel Review, 38 (2).
Nooteboom, B. (1993). Firm Size Effects on Transaction Costs. Small
Business Economics, 5, 283-295.
Dr. Worakamol W. (2022). Human Resource Management in 21st Century,
Blue Rose, 44