Impact of environment factor on hrm

Labour unions affect organizations in several ways management has less discretion and flexibility in implementing and administering human resource policies, practices, and procedures when dealing with unionized employees, since a negotiated collective agreement govern most term and conditions of employment, including wages and benefits working conditions and job security.

To be effective, human resource managers must monitor the environment on an ongoing basis; assess the impact of any changes; and be proactive in implementing policies and programs to deal with such challenges. Is the population ageing or youthful?

Since many business organizations depends substantially on borrowed funds, the level of interest rate and changes in it affects their cost of operation. Modem work force is characterized by literate, women and scheduled caste and scheduled tides workers.

Thus systems theory places emphasis upon integration of all activities while recognizing the importance of efficient system performance.

Over the years, we have seen this happen inform of strike. Often, organizations with a mix of unionized and non-unionized employees institute a policy whether officially or unofficially to ensure that similar or even slightly better terms and conditions of employment are provided for non-unionized staff to encourage them to remain their non-union status.

External environment includes forces like economic, political, technological, demographic etc. This is like a watchdog above the two. The point of the systems approach is that managers cannot function wholly within the confines of the traditional chart. When organizations are in shortage of funds, rewards, benefits and bonuses due to employees, such organization will not be able to meet it, thereby resulting to job dissatisfaction.


The number of people in the labour force is a factor of several other inter-related issues. C ; one may wonder why organization participants are considered external to the company. Knowledge of collective bargaining, contract administration and pertinent labour relations legislation becomes imperative.

Environment in Human Resource Management: Internal and External Environment

This is the price paid to borrow capital. Environment in Human Resource Management: Is the level of government expenditure, debt management and tax structure during a given time period while monetary policy is the changes in the stock of money, interest rate and credit policy during a period.

There are jobs that are traditionally reserved for men into which women are now moving. These are relevant questions for a human resource manager practioner.

Although, unions exist to represent the interest of employees, but their activities at other times hinders organizational performance. Is the organization flexible enough to contain and manage change occasioned by the new labour force? Systems theory tells us that the activity of any segment of an organization affects in varying degree the activities of every other segment.

Each organisation has its own culture that distinguishes one organisation from another. Changes in social and political trends and recent economic development around the world helps to account for the growing importance of the human resource department to organizations.

Organisational Culture and Conflict: Environment scanning helps HR manger become proactive to the environment which is characterised by change and intense competition.

It is clearly an external factor dependent on several other factors including government laws and state of the economy.

At this point, we wish to x ray these environmental factors and how they impact on human resource management.

Third, job becomes challenging for the employees who cope with the requirements of technology Fourth, technology reduces human interaction at the work place.

The above statement tends to explain that no organization can stand firm and operate very well without managers making a good scan of their environments to determine the opportunities and the threats.

Promotion, Transfer, Demotion and Separation. Technology is a systematic application of organised knowledge to practical tasks.

It ensures that both the legislature and the executive work within the confines of the constitution and also in the overall interest of the people.IMPACT OF ENVIRONMENTAL FACTORS ON HRM ABSTRACT: 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.

Businesses don't operate in a bubble and neither does human resource management. In this lesson, you'll learn about some important external factors that. y Covers the impact of political institutions on HRM department.

y 3 institutions which together constitute the total political environment: y The legislature- the law making body The plethora of labour acts which are in force are enacted by the legislature. y The executive- the law implementing /5(8). human resource management for sustainable competitive advantage The role of the Human Resource Manager is evolving with the change in competitive market environment and the fact that Human Resource Management must play a more strategic role in the success of an organization.

The research covers the workforce of EBBC with the view of identifying and evaluating the impact of environment on human resource management and to ascertain the degree of relationship that exist between environment and human resource management.

Discuss the impact of organizational culture and climate on human • helping to create and maintain a safe and healthy work environment • developing programs to meet the economic, psychological, and social needs (HRM).

Impact of environment factor on hrm
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