HRM Environment:

HRM and its environment:

Ø  Environment in which HR manager have to work

Ø  Help HR manager to become pro-active

Ø  External factors and internal factors

External Factors:

1)     Political – Legal:

a.       The legislature (parliament)

b.       Labor acts (state and center)

c.        Executive, government

d.       Judiciary, watch dog, public interest

2)     Economic Environment:

a.       Economic growth

b.       Industrial production, agriculture

c.        Population, national income, per capita income, money and capital market

d.       Suppliers, competitors, customers

e.       Industrial labor

f.         Suppliers:

                                                               i.      Providers of human resources

                                                             ii.      Employment exchange, universities, colleges, training institutes, labor contracts, competitors

g.       Competitors:

                                                               i.      Organizations are competing for human resource

                                                             ii.      Attractive terms and conditions will win

h.       Customers:

                                                               i.      Product quality are directly related to organization’s employees

i.         Industrial Labor:

                                                               i.      Committed to industry

                                                             ii.      Status is high

                                                           iii.      Unions, protective legislations

3)     Social and cultural forces:

a.       Place, culture, personality stamp

b.       Family

c.        Attitude of works

d.       Time dimensions ( long and short term duration)

e.       Work ethics

f.         Food, habits, dress sense, language, physical labor

4)     Technological Environment

a.       Jobs are more intellectual

b.       New machines

Internal Environment:

1.       Strategy:

a.       Direction company moves

b.       Alignment with resources

c.        Long term success depends on investment in employees

d.       Training, safety, security, welfare, harmonious industrial relations

2.       Task:

a.       Work that an employee is expected to do

b.       Task has implications on employees motivation and satisfactions

c.        Employees are satisfied and motivated when their preferences are meet

d.       Motivation depends on skills required, task significance, autonomy and feedback

3.       Leader:

a.       Skills, personalities, motivates employees

b.       Direction, authority, encouragement

c.        Leader choose right people

d.       Experience and leadership’s style influences the HR program

4.       Unions:

a.       External and internal factors

b.       All HR activities recruitment, selection, training, compensation, IR and separation are carried out in consultation with union leaders.

c.        Which is recognized union

d.       What is the membership of each union

e.       With whom are we to negotiate

f.         How about collective bargaining

g.       Unions and their political linkage

5.       Organization culture and conflicts

a.       Organization has its own culture

                                                               i.      JRD Tata: get the best people and set them free

                                                             ii.      Organization culture is the product of all the organization’s feature: its people, its success, its failures

                                                           iii.      Reflect its past and shape its future

                                                           iv.      L & T is known for its professional approach

                                                             v.      HP, General Motors: innovations

                                                           vi.      IBM: Service

                                                         vii.      Reliance: competitive spirit

                                                       viii.      Tata: quality services and ethical behavior

b.       Conflicts

                                                               i.      Personal goals v/s organization goals

                                                             ii.      Personal ethics v/s organization ethics

                                                           iii.      Right v/s duties

                                                           iv.      Discipline v/s autonomy

                                                             v.      Greed v/s renunciation(denial, refusal, rejection)

                                                           vi.      Short term v/s long term

6.       Professional Bodies:

a.       NIPM ( National Institute of Personnel Management)

(Ref: Human Resource Management by Aswathappa K)