HRM Environments (internal and external)

lecture about the enviroment and its impact over he HR practices

1. HRM Environment
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2. HRMenvironment
AnHRMenvironmentcomprisesofmanyelementswhicharebothinsideand
outsidetheorganization.Inarapidchangingsociety,organizationspresent
challengesthatrequireearlysolutions.InordertohaveaneffectiveHRprogram,
managersgivecarefulattentiontoallthesechallenges.
AHRMmanagerbalanceswiththeneedsoftheorganizationandtherealitiesof
theinternalandexternalenvironments.
SomeenvironmentfactorswhichhavesignificantimplicationsonHRM
environmentarethedecreasingtrendofavailabilityofmiddle-managers,
unemployment,educationandskillsgap,theadoptionofadvancedtechnology.
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4. Internal Environment
Thesearetheinternalforcesorfactorswhichhaveinfluence
onHRactivitiesoftheorganization.Someofthesefactors
are:
organizationalcultureandconflict,
organizationalclimate.
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5. Organizational Culture and Conflict
Eachorganizationhasitsownculturethatdifferentiatesoneorganizationfrom
another.Organizationculturereflectsthepastandshapesthefuture.Itisthe
productofallorganizationfeatures–itspeople,itspast,itssuccessesandits
failures.Fewcorevaluesorbeliefsshapeitsculture.Thus,cultureissharingof
somecorevaluesorbeliefsbythemembersoftheorganization.
Thereisoftenconflictbetweenorganizationalcultureandemployee’sattitude.
Individualshavepersonality,organizationshavecultures.
Conflictusuallysurfacesbecauseofdualitiessuchas–personalgoalv/s
organizationalgoal,disciplinev/sautonomy,rightsv/sduties,selfconfidence
v/sarrogance,participationv/sisolation.
SuchconflictshavetheirbearingsonHRactivitiesinanorganization.
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6. Organizational climate
Organizationalclimatereferstotheprevailingatmospherethatexistsin
anorganizationanditsimpactonemployees.Organizationscanbe
friendlyorunfriendly,openorsecretive,rigidorflexible,innovativeor
not.
Themajorfactorsinfluencingtheclimateareleadershipand
communicationstyle.Itisreflectedinthelevelofemployee
motivation,jobsatisfaction,performance,andproductivity,and
thushasadirectimpactonorganizationalprofits.
HRmanagersplayakeyroleinhelpinglinemanagersthroughoutthe
organizationtoestablishandmaintainapositiveorganizational
climate.
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7. External Environment
ThesearetheforcesexternaltoanorganizationandhaveinfluenceonHR
functions.TheexternalenvironmentofHRMconsistsofGovernmentregulations,
economicconditions,labourmarket,technologicaladvancementanddiversity.
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8. Government Regulations
Introductionofnewworkplacecompliancestandardshas
compelledHRdepartmenttobeunderconstantpressureto
staywithinthelaw.Theseregulationsinfluenceeveryprocess
oftheHRdepartment,includinghiring,training,
compensationandtermination.Violationsofsuchregulations
canleadtoextensivefineortotheclosureofcompany.
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9. Economic Conditions
Oneoftheexternalinfluencesistheshapeofeconomy.Itmayaffect
thetalentpooloritmightaffecttheabilitytohireanyoneatall.
Thebestwaytoprepareagainstadverseeconomicconditionsisto
knowwhat’shappeningintheworldaroundyouandsubsequently
createaplanforwhenthereisaneconomicrecession.
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10. LabourMarket
Itisthegeographicareafromwhereafirmrecruitsemployees.The
labourmarketisoftendifferentforvariousemployeegroupswithinan
organization.
Whileclericalandtechnicalemployeesaregenerallyhiredlocally,
seniormanagersandhighlyspecializedemployeesarehiredoften
nationallyoreveninternationally.
ThelabourmarketaffectsroleofHRasitisuntailoredandoften
uncertain.
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11. Technological Advancements
Technologicaladvancementisconsideredanexternal
influencetotheorganization.
HRdepartmenttendstobecomemoreupgraded,more
challenging,employeesbecomemoreskilledand
knowledgeable.
HRshouldbereadytodealwiththetechnology.
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12. Diversity
Workforceofanyorganizationcomprisesofpeoplefrom
differentnations.
Peoplebelongingtodifferentcultures,races,religions,gender
worktogetherinanorganization.
HRmanagersmustlearntolivewiththesediverse
behaviors.
Diversityifmanagedproperly,canincreasecreativityand
innovationinthefirms,decisionmakingcanalsobe
improvedwhichisveryessentialforeffectiveworkingofan
organization.
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13. HR Managers make sure that every type of external influence is listened to
and proper procedures are followed
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14. Strategic HRM
BeforeexplainingthemeaningofstrategicHRM,firstdefine
thetermsstrategyandstrategicmanagement.
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15. Strategyisassociatedwiththelong-termdecisionstakenatthetopofthe
enterprise.Thetermstrategyisfrequentlybeingusedinthepresent-daycorporate
world.Itenvisagesthinkingaheadtosurviveandgrowinahighlycompetitive
environment.Strategyisconcernedwithdeterminingwhichoptionwillprovide
maximumbenefits.
Strategicmanagementistheprocessofformulating,implementingand
evaluatingbusinessstrategiestoachieveorganizationalobjectives.
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16. Strategichumanresourcemanagementreferstothe
processofdevelopingpractices,programsandpoliciesthat
helpachieveorganizationalobjectives.
Thesepractices,programsandpoliciesneedtobealigned
withorganizationalstrategies.
Thestudyofstrategicmanagement,therefore,emphasizes
monitoringandevaluatingenvironmentalopportunitiesand
threatsinthelightofanorganization'sstrengthsand
weaknesses.
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17. Strategichumanresourcemanagementconsiderstheimplicationsofbusiness
strategyforallHRsystemswithintheorganizationbytranslatingorganization's
objectivesintospecificpeoplemanagementsystems.
Thespecificapproachappliedandprocessutilizedwillvaryfrom
organizationtoorganization.
Thestudyofstrategicmanagement,therefore,laysimportanceonmonitoringand
evaluatingenvironmentalopportunitiesandthreatsinthelightofaorganization's
strengthsandweaknesses.
Thus,strategicHRMmeansastrategiclookatHRfunctionsinlinewiththe
businessfunctionsofanorganization.
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18. StrategicHRMconcernedwiththefollowing:
Analyzetheopportunitiesandthreatsexistingintheexternal
environment.
Formulatestrategiesthatwillmatchtheorganization's(internal)
strengthsandweaknesseswithenvironmental(external)threatsand
opportunities.Inotherwords,makeaSWOTanalysisof
organization.
Implementthestrategiessoformulated.
Evaluateandcontrolactivitiestoensurethatorganization's
objectivesaredulyachieved.
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