Impact of Environmental Factors on HRM

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This article focuses Human Resource’s are to be included in the total value of a business, as people constitute the core element of an organization. The various factors which emerge as a challenge have been highlighted.

HR manager cannot perform his job in a vacuum as a member of environment factors which affect the HRM. Environment in HRM refers the totality of all factors which influence both the organization and HRM sub-system.

Technological Factors:
Just as necessity is the mother of invention competition and other reasons are responsible for the rapid technological changes and innovations. As a consequence of these changes, technical, personnel skilled workers, computer operators and machine operators are increasingly required. Hence procurement of skilled employees and their increase in numbers to match the changing job requirements has become a complicated task.

Changing demand of employees:
The information technological revolution and neck to heel marketing competition of most of the organization due to globalization demand that the existing employees adopt to the ever changing work situations and learn new skills and knowledge, etc., to cope up with the new changes.

Employees’ organization:
These organization constitutes one of the power blocks in many countries.

Organization depends upon customers for their survival and growth. Customers revolt against employees, if the services rendered are less qualitative. Hence HR manager has to take the customers’ attitude towards employees in HRM, particularly on service Industries and enable the employees to maintain relations with customers.

Social Factors:
Social environment consists of class structure, mobility, social roles, nature and development of social institutions, caste structure and occupational structure socially forward and backward sections, traditions, religion, culture and etc., these factors influence the HRM of an organization viz., its Human Resources.

Economic Factors:
These factors affect HRM of an organization by influencing its operations. Eg-economic system, economic policies, national income /per capita income, wage level and structure, distribution of income and wealth and etc., Hence, these factors influence the wage and salary levels of an organization.

Political Factors:
Splits in and amalgamation of existing parties affects the trade union in an organizations results in intra and inter union rivalry, new trade union formation, splits in and amalgamation of existing trade union and etc., These changes in trade union complicate the taste of HRM.

The early part of the century saw a concern for improved efficiency through careful design of work. During the middle part of the century emphasis shifted to the availability of managerial personnel and employee productivity. Recently, they have a focus on renewed emphasis on productivity.

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