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Human Resources Management - Personnel Environment

External Environment - Personnel Environment

   Posted On :  12.06.2018 06:40 am

Economic, political, technological and demographic factors have a bearing on external environment. These forces have considerable influence on HRM.

External Environment
 
Economic, political, technological and demographic factors have a bearing on external environment. These forces have considerable influence on HRM.
 

Economic Factors

 
Economic forces include growth rate and strategy, industrial production, national and per capita income, money and capital markets, competitions, industrial labour and globalization.
 
A sustained growth and higher GDP gives a lot of scope for HRM in the search of talents and innovations. Higher the industrial production, the more it unleashes its impact in various sectors giving a lot of scope for HRM activities. Where money and capital are vibrant and is in the increasing tempo, it may lead to higher investment and activities leading to greater demand for human resources. Globalization has opened new vistas where competitive edge and highest quality of products and services are needed. This imminent need gives a lot of scope for HRM activities.

Political Factors

 
Political environment covers the impact of political institutions on HRM practices. Democratic political system increases the expectations of workers for their well being. The total political environment is composed of legislature, executive and judiciary.
 
An enlightened legislature passes a plethora of legislations bearing on trade and finance, fixing responsibilities and duties to management and employees. The executive is always alert in implementing various schemes of government and law. The judiciary is zealously guarding the rights of business and society. All these aspects have made HRM to be active not only in choosing right people but also in looking after the employees welfare and legal directions.
 

Technological Factors

 
Technology is a systematic application of organized knowledge to practical tasks. Technological advances affect the HR functions in more than one way. Firstly, technology makes the job more intellectual and upgraded. Secondly workers are to know and put in practice the upgraded technology, lest they are left out. Thirdly jobs and operations become highly professionalized where the workers and employees of yester years have to be weeded out or employed in substitute work. All these involve active HRM operations.
 

Demographic Factors

 
Demographic variables include sex, age, literacy, mobility etc. Workers are now called ‘knowledge workers’ and the organization ‘knowledge organization’. The problems, skills and ability of women workers need separate treatment. This adds dimension to HRM thrust. 
Tags : Human Resources Management - Personnel Environment
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