External Factors of Human Resource Management
in a Changing Environment The external environment includes those factors that influence an organization’s human resources from outside the organization.
Each of these external factors, separately or together, can influence the HR function of any organization.
Some of these are like this-
(1) Technological change-Technical terminology refers to how an organization transforms its inputs.Changes in outputs. Every organization has at least one technology for converting its resources into products or services. Maruti Udyog Limited uses assembly-line process to convert its financial, human and material resources into products. Management institutes use a variety of instructional techniques (including cases, games, exercises, role-plays, etc.) to impart knowledge to young students.Use includes performance etc.)
As we all know, the workforce of the year 2000 is quite different from their counter parts in the early 1970s primarily because of computerization. The invention and development of microchips has created a dramatic revolution in the workplace.
Competition and many other factors are responsible for rapid technological changes and innovations. As a result of these changes, technicalThe demand for working class, skilled labor and machine operators has increased while the demand for other categories of employees has decreased. But it has been found that the supply of earlier category employees is less than the demand. Therefore, obtaining skilled employees and increasing their number as per the changing job requirements has become a complex task. Also, not only to satisfy new organizational relationships and changing relationships.To achieve this, various motivational techniques will be required but it will also be required to retain technically skilled and qualified working class.
(2) Economic factors-Many economic factors influence the operations of an organization and affect the management of its human resources. Important among them are economic system, economic policies, national income, per capita income, wage level and structure, distribution of income and wealth etc. These factors are mainlyAffect the wage and salary levels of the organization.
(3) Social factors-Social environment includes class structure, mobility, social roles, social values, nature and development of social institutions, caste structure and occupational structure, socially developed and weaker sections, traditions, religion, culture etc. These factors are related to human resource management of an organization i.e.
its Affect human resources. convertedPsycho-social system – In the traditional bureaucratic style, organizations were designed to perform technical tasks with rigid departmentalization of work functions. But in future, human participation will be needed not only in technical work but also in establishing a democratic humanitarian system.
Egalitarian Social System Most of the major developments that have taken place in the last four decades have been the responsibility of the organization’s members.Organizations have arisen due to the desire to have more say and influence in activities. Therefore, contemporary organizations are paying less attention to hierarchical structures. And are moving towards a more egalitarian social system. This will become more common in the coming days.
(4) Political factors – Political stability, political parties and their ideologies and political moves, formation of new political parties, disintegration and integration of existing parties are definitely a factor.Influence labor unions in the organization. This results in intra-union and inter-union rivalry, formation of new labor unions, disintegration and integration of existing labor unions, etc. These changes in labor unions complicate the task of HRM.
(5) Legal factors – One of the most important external factors influencing HRM is the legal environment i.e. in the Center and the States.Information about acts made by the government. The major acts enacted in India affecting HRM are- Factories Act, 1948; Labor Union Act, 1926; Payment of Wages Act, 1936; Minimum Wages Act 1948; Employment State Insurance Act, 1948; Workmen’s Compensation Act, 1923; Payment of Bonus Act, 1965; Industrial Employment (Standing Orders) Act, 1946; Employment Exchange (Vacancies MandatoryNotification) Act, 1959; Payment of Gratuity Act, 1972; Maternity Benefit Act, 1961; Trainee Act 1961 etc. To cope with the increasing changes in the legal environment, necessary adjustments have to be made so that human resources can be better utilized.
(6) Effect of globalization-Our economy is gradually integrating with the global economy. Globalization has a great impact on HR functions.Is. Recruitment, training, motivation, remuneration and retention of employees will have to be guided by a global vision. By effectively performing these and other functions and providing the best-qualified individuals to help execute the company’s strategy globally, the department can become a source of competitive advantage for the company.
Because every developed country is becoming more global, itsThe abilities and cumulative learning of the workforce become its competitive assets. All developed countries can design, produce and distribute goods and services with ease and speed. Every factor of production, except workforce skills, can be replicated anywhere in the world. Capital moves freely across national borders seeking the lowest costs. Factories can be built anywhere.Recent technologies travel from computers in one country to satellites in the sky and back to computers in another country – all at the speed of electrical waves. It’s all fugjitle – capital, technology, raw materials, information – all, except one thing which is most important.