2. Chapter two introduction to Human resource

hrm

1. Chapter Two: Human Resource Management
Environments
Chapter outline:
–The external environment
–The internal environment
–Human resource management model
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2. Introduction
•Human Resource Management cannot take place in
isolation from the external and internal environment.
•The functions of Human resources are executed on
permeable systems.
•These environments affect the human resource functions, These environments affect the human resource functions,
and shape the policies and practices of human resource and shape the policies and practices of human resource
managementmanagement. .
•Today HRM is much more integrated into both the
management and the strategic planning process of the
organization.
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3. I. External Environment
•External environment is the environment that exists
outside the organization.
•They influence the organizational performance but
largely beyond management’s control.
• It provides opportunities and threats opportunities and threats to the organization
and human resource management.
•It usually includes the broad external environment,
namely, Political /Legal, Economic, Socio-Cultural
and Technological (PEST) environments.
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4. 1. Political /Legal Factors
•The Political systemPolitical system, such as, democratic or not, nature of
the government and favouring the employee over the
employer, affects the human resource functions of an
organization.
•Government through the enforcement of different laws
also has direct and immediate impact direct and immediate impact on HRM on HRM
functionfunction.
•Government made different laws that regulate
relationshiprelationship between employer and employees including
issues, such as equal employment opportunity (EEO), employment opportunity (EEO),
affirmative action, safety and health, wages and salaries, affirmative action, safety and health, wages and salaries,
hours of work, etc.hours of work, etc.
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5. 1. Political /Legal Factors
•Equal Employment Opportunity: Government laws
require providing applicants an equal opportunity for
employment with regard to race, religion, sex, disability,
age or national origin. There should not be discrimination
during recruitment and selection of candidates employees.
•Affirmative Action: Affirmative Action is taken for the
purpose of eliminating the present effects of the past
discrimination. It is the practice of recruiting, hiring or
staffing under-represented groups or minorities, such as
women, disability, and the disadvantaged groups of the
society.
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6. 1. Political /Legal Factors
•Government passes legislations that will enforce
the employee’s safety and health.
•Government may set minimum level of wages and set minimum level of wages and
salaries, equal pay for equal work, hours of work, salaries, equal pay for equal work, hours of work,
holiday, leaves, etc holiday, leaves, etc
•The surge of government regulations and laws has
placed a tremendous burden on human resource
managers
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7. 2. Economic Factors
•Economic parameter like GNP, per capital income,
an employment rate, inflation rate, etc affects
HRM.
•If the economy is boomingbooming and unemployment rate
is low, it may be harder to acquire and retain the harder to acquire and retain the
staff. staff.
•In times of economic declineeconomic decline, unemployment rate
increases and a greater choice of labor is available
to the employer
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8. 3. Socio-Cultural Factors
•These factors are created by the society on human
resource management, such as demographic factors and
culture.
• Demographic factors describe the compositioncomposition of the
workforce, such as age, sex, raceage, sex, race, and language.language.
•Culture is the belief and custom (religion) of the society.
•It affects the attitude and activities of workers.
•HR managers need to understand the culture and society need to understand the culture and society
from which their employees are recruited.
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9. 4. Technological Factors
•The world has never before seen technological
changes occur as rapidly as they are today.
• Technologies have an impact on HRM by
changing the entire working methods and systems.
• Technological change will continue to shift shift
employment from some occupations to others, employment from some occupations to others, i.e.,
labor-intensive and clerical jobs will decrease labor-intensive and clerical jobs will decrease
while technical, managerial, and professional jobs while technical, managerial, and professional jobs
will increasewill increase
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10. II. Internal Environment
•An internal environment is the environment that
exists inside the organization.
•It contributes to the strength and weakness strength and weakness of the
organization.
•There are a number of internal factors affecting HR
Managers work. Some of them are:
•HR department as it interact with other HR department as it interact with other
departmentsdepartments
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11. II. Internal Environment
• Strategy of an organization: Organizations have
several strategies (goals and objectives), such as growth ), such as growth
strategy, survival strategy or exit strategystrategy, survival strategy or exit strategy. .
•Leadership style of the organization: Leadership styles
practiced by top management and supervisors will affect
the relationshiprelationship between supervisors and subordinates.
•The style of leadership might be autocratic, democratic or autocratic, democratic or
laissez-fairelaissez-faire.
•Leadership styles adopted in an organization influences
human resource functions.
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12. II. Internal Environment
•Nature of the task: The type of the task to be
performed in an organization highly affects
human resource management.
•This is because some jobs can attract or retain
workers, while others might be the causes of high
labor turnover.
•The elements of the nature of the task include:
Degree of physical exertion, Working environment, Physical
location, Degree of human interaction
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13. © 2008 by Prentice Hall 1-13
Summary of Human Resource Management Environment
EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT
1
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Resource
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14. The Steps in Dealing Environmental Challenges
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15. 1. Monitor the environment
•Human resource managers must be always
informed about new changes in the environment.
•They can scan the environment scan the environment through
professional associations, attendance of seminars,
furthering their formal education, reading
newspaper and magazines, and browsing the
internet.
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16. 2. Evaluate the impact
•After human resource managers acquire new
information about changes in the environment,
they should analyze and evaluate the impact of the
environment on the organization’s human
resource management
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17. 3. Take proactive measures
•Once the impacts of environmental changes are
evaluated, human resource managers implement
approaches that help the organization to reach its
goals by the aid of human resources.
•Note that, there are two opposite approaches of
human resource management, reactive and
proactive.
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18. 3. Take proactive measures
•Reactive human resource management occurs when
decision makers respond to human resource problems, i.e.,
after the actual problem happens.
•Proactive approach of human resource management
anticipated human resource problems and correction action
begins before the problem arises.
•To give effective and efficient solutions to human resource
problems, human resource managers should take proactive
measures
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19. 4. Obtain and analyze feedback
•The results of proactive measures taken by the
HR manager are evaluated to see if the desired
outcomes are achieved.
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20. The End
Thank You!
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