MANAGING HUMAN RESOURCE

Queens college for women

Instructor : Nida Gulzar
Department: BS English
 HRM ENVIRONMENT

The HRM environment consists of the aggregate of

the conditions, events and influences which
surround and affect the human resource
 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
 HRM ENVIRONMENT

HRM
External Internal Environment
 • Those factors which affect
External the organizations human
resource from outside the
organization

• Factors which influence

Internal the human resources with
in the
organization’s ...boundary
 COMPARISON
External Environment Internal Environment

• Social & Cultural • Organizational Structure

• Technological
• Organizational Culture
• Economic
• Political • HR Systems
• Demographic • HR Policies
• Unions • Professional Bodies
External Environment
 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
 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
 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
 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.
 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.
 DEMOGRAPHIC

Demographic variables include sex, age, literacy, mobility, etc.

 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.
Internal Environment
 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.
 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.
 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.
 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.