Changes in the internal and external environmental factors complicate the job both of line and personnel managers in overseeing the contributions of human resources. Successful managers are those who anticipate and adjust to such changes quickly rather than being passively swept along or caught unprepared. The span of tasks of human resource management is now not only limited in hiring of employees. Company Strategies Companies will also have plans and strategies on how best to move forward. While these assessments are limited to certain areas of activity and are highly regulated in most developed countries, environmental factors always exist in each and every project: from a small-scale internal project to a macro-project of hundreds of millions of dollars in budget. In this way the favorable behaviors of the employees are rewarded so the organization would get the ultimate advantage.
Quantitative measurements of employee engagement come from employee opinion surveys, turnover rates, analyzing retention policies and expenditures and compensation studies. Alternatively, the organization can have a formalized plan which is clearly spell out in writing, backed by documentation and data. These external forces are almost out of control of the management of the organization. For example, the location of the project in a country where it has never been worked will expose itself to an unknown regulatory environment, generating many risks in terms of legal feasibility, the labor framework, etc. Organizational Culture: Every organization has its own culture, i. Professionalism: Job holders and seekers have become highly professionalised and knowledgeable now-a-days.
While bringing both pros and cons along with it, technology has spearheaded into the forefront. The modern employees are known for job hopping and rootlessness. Even most successful organizations lay off its employees in the period of cut throat competition. A major issue in personnel planning is the type of information which should be used in making forecasts. These external factors can be broadly categorized as the social and cultural, technological, economic, political and legal environments. Project issues test the competence of the project manager and project team, and threaten to undermine the of the project. If some of these employees are unhappy, they might decide to try to find a new job, making the already flooded applicant market even worse.
Political, social and economic changes affect all organizations. The Maternity Benefit Act, 1961 x. However, if work-life balance is more important, a generous vacation and paid leave package may be more motivating. Organizations seek to reduce uncertainty by planning, which includes forecasting and predicting possible future conditions and events. Techno-structure is the composition of scientists and technicians of an organisation. Of primary importance here are the external influences of economic conditions, labour markets, laws and regulations and labour unions. The environment furnishes the macro context and the organisation is the micro unit.
External Factor: Available Labor Pool Perhaps the main function of human resources departments is to maintain adequate staffing levels through workforce planning. Whatever the company choose to do, will definitely affect how the human resource management will perform. Social: This can be about the culture of a people e. They want high quality products at reasonable prices. A few of these problems are as follows: i. A recent example is the political debate and eventual enactment of the Patient Protection and Affordable Care Act.
Introduction: The concept of human resource is changing day by day. This is now considered to the social responsibility of the organization to show favorable behavior towards the society. Employees State Insurance Act, 1948 vi. This structure tries to control the organisation by influencing the managerial decision making. Major Categories of Human Resource Management Functions Planning a. Type and Quality of Information The information used to forecast personnel needs originates from a multitude of sources.
Trade Union: Trade unions are voluntary organizations of generally the workers formed to promote and protect their interests through collective actions. Technology Technology also can present opportunities and challenges for human resource management professionals. Updating and reprinting handbooks, manuals and employee self-service web pages to reflect new laws tap resources but help to keep you compliant. New technologies, generally, compel people to learn a new set of skills altogether or to upgrade their existing skills and knowledge. Economic Conditions — One of the biggest external influences is the shape of the current economy. This approach consists of some typical human resource components like recruitment, quality.
The organizational issues are also affected by the fact that how employees are treated within the organizations. Each of these external forces is examined here. The human resource management of an organization plays a basic role in response to the environmental change. Need for planning is felt when the organization enters the growth stage. Regulations can influence how a company goes about hiring, training, compensating and even disciplining its workers, and a misstep could result in sanctions against the company or even lawsuits filed by employees, prospective employees, vendors and customers. Brought to you by Internal Factor: Level of Growth An internal factor that impacts human resources is the company's rate of current and projected growth. In short it is a system that believes it is important to communicate well with employees and include them in what is going on with the organization, to increase the commitment.
Unions: Trade unions constitute one of the major power blocks in many countries. When planning ahead, you need to consider likely changes to markets, budgets and availability of suitable applicants as a result of recent or anticipated political influences. A few common examples here include accountants, engineers, and lawyers, among many other types of skilled employees. Keep yourself up to date, and have an employment law specialist available to consult if necessary. Political From a shift in local public opinion to a change in government or even a new industrial world superpower entering the market, politics influence how much funding is available, how much tax must be paid, minimum wage rates, how markets are controlled and the quality and quantity of staff available for hire. Recessions, economic booms and the general rate of inflation affect consumer demand, which affects personnel needs. Also, it was found that, internal andexternal environmental factors are significantly associated.