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Environment of HRM
Environment of HRM
INTRODUCTION
The term human resource management means employing people, developing this resource, utilising and compensating this services in tune with the job and organisational requirement with a view to contribute to the goals of the organisation, individual and the society. It is a part of management and it based on human behaviour.
Definition:
Leon C. Meggsion, the term human resource can be define as , the total knowledge, skills, creative ability, talents and aptitudes of an organisations workforce, as the value, attitudes and beliefs of the individuals involved. Human resource management(HRM) can be define as managing (planning, organising, directing and controlling) the functions of employing, developing and compensating human resources resulting in the creation and development of relation with a view to contribute proportionally(due to them) to the organizational, individual and social goals. It can be show as the following figure.
Thus, Human resource management includes, all the management functions and department, such as employee management, shift management, attendance management, leave management, payroll management etc.
Political Environment
Business Strategy
HR System
Economic Environme nt
Organizational Structure
Legal Environment
External factors:
The events occurring outside the organisation but influencing the HR activities are called external factors. Since external environmental factors operate outside business, organizations will have little or no control over these factors. External environment factors are usually made up of the macro environment and industry environment. We shall now see each of these factors in details.
a. Demographics:
A scientific study of the size and structure of the population and its development is usually described as demographics. The demographics of the Indian workforce are broadly diverse in nature. The compositions of workforce in Indian organisation have undergone a tremendous change in the recent decade. The marginal sections like woman, the physically challenged, minorities and people belonging to schedule cast schedule tribes and other backward communities have joined the organizations in a sizable numbers. It is therefore; very important for HR managers to clearly understand the environmental influences of different demographics on the organization and HR activities.
b. Educational Status:
The success of training and development programme undertaken by organization largely depend on the educational level of the employees. Thus, the organizations with large proportions of knowledge workers-a term used for well educated workers- may require dynamic HR policies to meet the high expectations of these employees.
The govt. political organization takes and create policy about the workers of the business organization. These decision and policies are different in case of organizations. So, the HR manager has to follow these policies for their task. II. Political stability:
Business organizations and industry are sometimes relying on political stability. If there are no stability in govt. then it effect on the economy of a country. In India, before 1998, there was no political stability of the govt. but after 1998, the NDA govt rolling complete five years then UPA also rolling since2004to till that. In this situation there are no chance to change the policy of wages & compensation immediately. III. Prevailing political Ideologies:
The philosophies of political parties are called political ideologies. The ideologies determine the government policies and intervention strategies, the attitudes towards trade unions, labour legislations and attitudes towards the foreign organizations.
The prevailing political environment usually influences the HR management in many ways. Hence, the HR manager should wary of the political ideologies of the ruling parties on issue like collective bargaining, social security benefits, and recruitment.
I. II. III.
Administrative laws: which includes the regulations issued by the government, Case laws: which comprise court decisions and, Constitutional laws: which include the fundamental rights of the citizens enshrined in the constitution.
As far as India is concerned, there is a plethora of laws covering different spheres of employment and thus having implications for HRM. The country has several acts to protect the rights and conditions of employees and to govern the employee-employer relations. similarly it has specific legal provisions for payment of wages, working conditions, terms and conditions of employment, welfare facilities, and dispute settlement. We shall see now list of some laws: I. II. III. IV. The Trade Union Act, 1926 The Payment of WagesAct,1936 The Mines Act,1952 The Information Technology Act,2000 etc.
In additions to these laws, some of the articles of Indian constitution also guarantee a few right as fundamental to all the citizen. These laws and provision create a definite legal environment. Organization has to plan and execute the HR actions without violating and existing legal provision.
INTERNAL FACTORS:
The factors that are influence internally to an organization are called the internal environmental factors. These factors can be influence by the organization as it remains within the control of the management. We shall now discuss those internal factors that influence the HR activities of a firm.
3. Organization culture:
The tradition, past practices, language, values, beliefs, meanings and norms of an organization together form its culture. The organization culture creates a common understanding among its members. Certainly, organization culture creates an internal environment within which HR activities are develop and performed. The strength of corporate culture has a definite impact on corporate HR policies. Therefore, human resource strategies need to be closely aligned to the culture of the organization.
4. Organizational Structure:
Organization structure deals with the firm deligate controls and coordinate the authority, responsibilities and accountability among the members of the organization. The organization structure has a critical influence on the HR practices of the organization. For instance, the structure helps in grading and grouping the jobs in the organization. This grading, in turn, helps in developing the recruitment process for each job. Similarly, the structure also helps in determining the ideal number of subordinates for each manager.
Conclusion
Thus, from the above discussion we can conclude that, HRM environment consist of both external and internal factors. External factors a little or no chance to control by the organizations. But internal factors can control by the organization by using several types of policy. --------------------Reference: Human Resource Management by P Subba Rao : Human Resource Management by Prabin Duari : internet