Humans are the most valuable asset of any organization. In any organization there are many issues pertaining to hiring, management and productivity etc. In order to overcome and resolve such issues organizations use the services of have human resource managers. Human resource management system is an important aspect of any organization. Managers develop their working strategies according to internal and external factors which may have an influence on their business. Internal factors are related to the organizations which are in control of the managers but external factors are present in the environment like political, economic, social, technological, environmental and legal environment (PESTLE). These external factors are very important in determining any organization’s future, as they have a strong influence over the business but the human resource managers have no control over them. This essay will have a look upon impact of these external factors and how the human resource managers can cope with them. Human Resource Management:
Human Resource Management in any organization is concerned with the “people” dimension ( DeCenzo, Robbins and Verhulst, Human Resource Management (HRM) in organizations is concerned with recruitment/hiring process, administration and management structure, performance appraisals and management, professional development, communication, safety etc.
Human resource management emphasize on attracting, hiring, training, motivating and maintaining employees. Because having strong employees in organizations is a positive edge and provides advantage in market competition local and global as well. As individuals in an organization are coming from different backgrounds and cultures hence human resource management helps in managing people at work place and work place’s environment as well. Activities of human resource are highly affected by changes occurring outside the organization. Hence it is necessary to acknowledge such changes because these external factors are affecting all the activities of human resource whether directly or indirectly. External Environment:
The external environment includes; economic, demographic, legal cultural, and technological factors. These external factors are uncontrollable and dynamic, as managers cannot control competition in business, legal changes and socio economic conditions of the country but they can device some measures in response to the external changes. In order to assess the impact of external environment in an organization HR managers have to look upon different circumstances outside the organization like political, economic, social, technological, environmental and legal ones. Figure given below highlights some essential external factors that have an impact on business activities.
These factors are not controllable by business but managers can manage necessary changes in response to their effects. The major concern and responsibility of human resource managers is to identify and handle such changes as early as possible. It depends on how well and early the manager identifies the change. Information related to changes in external factors is now available through media especially economic factor. Managers can use the information from print and electronic media for their strategic planning. But on the other side there are some external factors who are not easy to identify and predict change in them. Human resource managers must have the quality to anticipate and recognize influential external factors and to develop different strategies to deal with them. This will helps the organization in prospering and growing. Change in external factors is inevitable, hence human resource managers are required to identify changes in the external environment and then modify their business strategies by using strategic planning. Impact of External Environment on HRM Activities:
All of these factors have an impact on human...
UK Essays. November 2013. Human Resource And External Environment Business Essay. [online]. Available from: http://www.ukessays.com/essays/business/human-resource-and-external-environment-business-essay.php?cref=1 [Accessed 30 September 2014].
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