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
7.
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.
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.
15.
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.
