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)
