08-10-2012, 12:27 PM
Environmental factors affecting HRM
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Internal Factors Affecting HRM
Labor Union
An organization that represents workers and seeks to protect their interests through collective bargaining.
Collective Bargaining Agreement
A contractual agreement between a firm and a union elected to represent a bargaining unit of employees of the firm in bargaining for:
Wage, hours, and working conditions.
Affirmative Action:-
The requirement that organizations take proactive steps to ensure the full participation of protected groups in its workforce.
Laws and Regulations:-
Limit managerial discretion in hiring, promoting, and discharging employees.
External Factors Affecting HRM
Political climate
Economic climate
Company strategies
Technological developments
Political ClimateThe political climate can have a great affect on any business and subsequent business departments such as human resource management. If the government decides on spending cuts or increasing taxes on businesses then this will dramatically affect the running of the business. Department budgets may have to be trimmed or the department may even have to be completely scrapped.
Economic ClimateThe economic climate can be closely associated with the political climate. However, it also includes how the banks are coping and if they are willing to lend to businesses. Again if the banks are cautious and so do not lend and in fact try and get their money back quicker, it can spell disaster for a business. This in turn, will mean big changes for how human resources in a company would be run.
Company Strategies
Companies will also have plans and strategies on how best to move forward. These will of course largely be determined by the two previous factors mentioned. Whatever the company choose to do, will definitely affect how the human resource management will perform.
Technological DevelopmentsTechnological developments will greatly affect how human resource management departments conduct their business. Instead of having to bring staff in for physical meetings, they can now do video-calling, send emails or even SMS text messages