Human resource management
is a management function that helps managers plan, recruit, select, train
develop, remunerate and maintain members for an organization. There are mainly
two major factors which affect HRM system.
1. External Factors
2. Internal Factors
External Factors
External factors include political-legal, economic, technological, and cultural factors.
Political-Legal:
The political environment covers the impact of political institutions on the HRM department. In a democratic political setup there are three institutions, which together constitute the total political environment. They are - 1) the legislature, 2) the executive, and 3) the judiciary.
The legislature, also called Parliament at the central level and Assembly at the state level, is the lawmaking body. The plethora’s of labor acts which are in force are enacted by the legislature. The executive, popularly known as the government, is the law-implementing body. The legislature decides and the executive acts. The main function of the judiciary is to ensure that both the legislature and the executive work within the confines of the Constitution and in the public interest.
Economic:
Economic environment refers to all those economic forces, which have a bearing on the HR function. Growth strategy, industrial production, agriculture, population, national and per capita income, money and capital markets, supplier, customers, and industrial labor are the components of the economic is globalization.
Technological:
Technology affects the HR function by the following ways
1. With the advent of technology, jobs tend to become more intellectual or upgraded.
2. The employees who pick up and acquaint themselves with new technology, the job will be challenging and rewarding.
3. Technology lays down the requirements for much of the human interaction in organizations.
4. Jobholders will become highly professionalized and knowledgeable.
Cultural:
Culture creates the type of people who become members of an organization.
1. Culture trains people along particular lines, tending to put a personality stamp upon them.
2. The attitude of workers towards work is the result of their cultural background.
3. Time dimension, which influences HRM, has its roots in culture.
Internal Forces
Prominent internal forces are unions, organizational culture and conflicts, and professional bodies.
Unions
A trade union may be understood as an association of workers or management formed to protect their own individual interests. The role of a union is too well known, not needing and elaboration here. All HR activities- recruitment, selection, training, compensation, IR and separation- are carried out in consultation with union leaders. The role of unions becomes pronounced when a new wage agreement needs to be signed.
Organizational culture and conflict:
Organizational culture is the product of all the organization's features-its people, its successes, and its failures. Organizational culture reflects the past and shapes the future. It is the job of HR specialists to adjust proactively to the culture of the organization. For example, objectives can be achieved in several acceptable ways. This idea, called equifinality, means there are usually multiple paths to objectives. The key to success is picking the path that best fits the organization's culture.
Professional Bodies:
Professional Bodies arrange periodic training pogrammes, seminars and conferences for the benefit of HR professional.
1. External Factors
2. Internal Factors
External Factors
External factors include political-legal, economic, technological, and cultural factors.
Political-Legal:
The political environment covers the impact of political institutions on the HRM department. In a democratic political setup there are three institutions, which together constitute the total political environment. They are - 1) the legislature, 2) the executive, and 3) the judiciary.
The legislature, also called Parliament at the central level and Assembly at the state level, is the lawmaking body. The plethora’s of labor acts which are in force are enacted by the legislature. The executive, popularly known as the government, is the law-implementing body. The legislature decides and the executive acts. The main function of the judiciary is to ensure that both the legislature and the executive work within the confines of the Constitution and in the public interest.
Economic:
Economic environment refers to all those economic forces, which have a bearing on the HR function. Growth strategy, industrial production, agriculture, population, national and per capita income, money and capital markets, supplier, customers, and industrial labor are the components of the economic is globalization.
Technological:
Technology affects the HR function by the following ways
1. With the advent of technology, jobs tend to become more intellectual or upgraded.
2. The employees who pick up and acquaint themselves with new technology, the job will be challenging and rewarding.
3. Technology lays down the requirements for much of the human interaction in organizations.
4. Jobholders will become highly professionalized and knowledgeable.
Cultural:
Culture creates the type of people who become members of an organization.
1. Culture trains people along particular lines, tending to put a personality stamp upon them.
2. The attitude of workers towards work is the result of their cultural background.
3. Time dimension, which influences HRM, has its roots in culture.
Internal Forces
Prominent internal forces are unions, organizational culture and conflicts, and professional bodies.
Unions
A trade union may be understood as an association of workers or management formed to protect their own individual interests. The role of a union is too well known, not needing and elaboration here. All HR activities- recruitment, selection, training, compensation, IR and separation- are carried out in consultation with union leaders. The role of unions becomes pronounced when a new wage agreement needs to be signed.
Organizational culture and conflict:
Organizational culture is the product of all the organization's features-its people, its successes, and its failures. Organizational culture reflects the past and shapes the future. It is the job of HR specialists to adjust proactively to the culture of the organization. For example, objectives can be achieved in several acceptable ways. This idea, called equifinality, means there are usually multiple paths to objectives. The key to success is picking the path that best fits the organization's culture.
Professional Bodies:
Professional Bodies arrange periodic training pogrammes, seminars and conferences for the benefit of HR professional.
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