You are on page 1of 2

Human Resource Management Environment

HR manager can’t perform his job in a vacuum as a number of


environmental factors affect the HRM. In fact, these factors influence the
Organization through human resources.
Environment (with special reference to Human Resource
Management): means the totality of all factors, which influence both the
Organization and HRM sub system.

Environmental Scanning of HRM


Technological
Marketing

Government & Legal


Customers

Orgn. Politics HRM Production

Political Trade
Unions

Finance Orgn. Structure

Economic Social & Religious


The environment furnishes the macro context and the Organization is the
micro unit. The external environment is comprised of those factors,
which affect an organization’s human resources from outside the
Organization. Important among them are:
 Economic;
 Social;
 Political;
 Governmental;
 Legal;
 Technological;
 Manpower in the country;
 Tradition and culture;
 Customers;
 Other organizations;
 Trade Unions in other organizations.

1.8.1 Internal Environment:


The internal environment also affects the job of a personnel manager. The
internal environmental factors include Organization objectives, policies,
organizational structure, and the functional areas of the Organization with
which the personnel manager works continuously like finance, marketing
and production. Impact of internal environment factors is profound as
they frequently and closely interact with HRM function in an
Organization.

1.8.2 External Environment:

The influence of external environment on HRM is also equally important,


though the severity is comparatively less. People are essentially self-
managing. In other words, while people manage other resources,
themselves manage personnel. People themselves decide about the
nature, time, and place of their employment. And people react to the
changing conditions and to the techniques of management unlike money,
material and machine. The changes includes in the external environment
are:
 Technological obsolescence;
 Cultural and social changes;
 Changes in the policies of govt.;
 Politics and the like.

With the result, the work environment changes thereby affecting their
productivity level.

Considering the complexities and the challenges in the HRM now and in
near future management has to develop sophisticated techniques and
efficient specialists to among the personnel on sound lines

You might also like