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Human Resources Management - An Overview

Environment of HRM - An Overview

   Posted On :  30.05.2018 08:06 am

Environment comprises all those forces which have their bearing on the functioning of various activities, including human resource activities.

Environment of HRM
Environment comprises all those forces which have their bearing on the functioning of various activities, including human resource activities. Environment scanning helps HR manager to become pro-active to the environment which is characterized by change and intense competition. There are two types of environment which operates and have bearing on human resources.

Internal Environment

These are the forces internal to an organization. Internal forces have profound influence on HR functions. The internal environment of HRM consists of unions, organizational culture and conflict, professional bodies, organizational objectives, policies, etc.
Trade Union: Trade Unions are formed to safeguard the interest of its member workers, HR activities like recruitment, selection, training, compensation, industrial relations and separation are carried out in consultation with trade union leaders. Various activities of trade unions have a bearing on the HRM.

Organizational culture and conflict:

As individuals have personality, organizations have cultures. Each organization has its own culture, which it cherishes and wants to retain and follow faithfully. Culture is some core values and beliefs cherished by the members of the organization. The Reliance Industries Ltd., has “value for time”, as its core culture. Tatas have the core culture of “get the best people and set them free”. HR practices that best fit the organization’s culture need to be implemented. Conflict usually surfaces because of dualities such as personal goal, vs. organizational goal, discipline vs. duties etc. Such conflicts have their bearings on HR activities in an organization.

NIPM & HR Professional Bodies

NIPM regulates HR practitioners. As a member of NIPM, the dictums are:
As personnel Manager declare that I shall

1. Subscribe to the aims and objects of the National Institute of Personnel Management and be bound by its constitution.

2. Recognize and accept the dignity of an individual as human being, irrespective of religion, language, caste or creed.

3. Maintain high standard of integrity and behaviour demanded by the profession.

4. Conduct myself as responsible member of the management team committed to the achievement of the organizational goals.

5. Take keen interest in the establishment of healthy personnel practices and development of the profession.

6. Try to win confidence and gain respect of the employees and make myself available to them, provide formal and informal intervention to resolve industrial conflicts.

7. Endeavour to enhance the good name of my profession in dealing with other professional bodies, government departments, and employer’s and employees’ organizations.
8. Cooperate in maximizing the effectiveness of the profession by exchanging freely information and experience with other members.
9. Not allow any interest other than professional to interfere with my official work.
10. Not to disclose any information of a confidential nature that I may acquire in the course of my professional work without obtaining the consent of those concerned and shall not use confidential information for personal gains.
11. Not accept or offer any improper gratification in any form or manner whatever in connection with or in the course of my professional work. and
12. Not to take acquiesce in such action which may bring the institute or the profession into disrepute.

External Environment

External environment also exerts considerable influence or HRM. External environment includes economic, political, technological and demographic factors.

Economic Factors

Economic forces such as growth rate and strategy, industrial production, national and per-capita incomes, money and capital markets, competitions, industrial labour and globalization have impact on HRM policies. Growing unemployment and reservations in employment also affect the choice for recruitment and selection of employees in organizations.

Political Factors

The total political environment is composed of legislature, executive and judiciary and all of them have impact on placement, training retention and maintenance of employees.


Technology is a systematic application of organized knowledge to practical tasks. Technological advances affect the HR functions in several ways. Technology makes the job more intellectual or upgraded. Secondly, it renders workers dislocated, if they do not equip themselves to the job. Thirdly, job becomes challenging for the employees who cope with the requirements of technology. Further, technology reduces human interaction at the work place. Finally, job holders become highly professionalized and knowledge based in the job they perform.


Demographic variables include sex, age, literacy, mobility, etc., All these have different dimensions in employment and placement.

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