_N HUMAN RESOURCE MANAGEMENT: ENVIRONMENT AND STRATEGIES CHAPTER — ——= Rs [eusiness ENVIRONMENTAL FACTORS mai environmental factors and internal toma, enn ktas erorereria ace roy ie’ ee ace bares Fon Sa eee 2a or ar hn HP a ‘management production management. mansgamentteadership siies, : nari ee Charalareranonaiecer oe og wero no soo ret (actors, Micro/extarnal enoronmenial tors nude’ competitors, cusiorers, Market NeTHOSSAS,SUPBligs, Fe ee done Hake aieny ae omar rvronmue crs ccs anton oma CON, Soran factors, potteal and goverrmertal factors aratonal fis and naira actors natal enwronrer ta Protection a ee fae, ant, an pris wo maa ne gths and weakness, fogical balance. The analysis of intemal environmental factors indicates the strenc (SYA of the business thon whae the analy of micro externa! and macro external environmental factors incdeates tho opportunites (0) provided nd tests (7) posed.by the environment tha business, The SWOT (strongins, wesknose vse hobs fo formulate strategie forthe business fan, of HUMAN RESOURCE MANAGEMENT ENVIRONMENT ‘opportunities and threats) anal sac ae ‘environment in general and human resource environment in particular have been relatively vibrant ih regen ig human resource environment is curenty more turbulent han into past, Polical infences managormen peaisalion and iberaisaion and information technology had massive mpacton human resource eons ait. Formation of rade blacks, estebishment of World Trade Organisation and shit in political ang domain bigest brought paradigm shitts in the nature of business. Shifts in the nature ani human sag uziness brought vibrations in social and cultural issues across he globe. Consequently. te ola 0 orgameantzource function Is broadened and eleveted in most of tne business as well as non-busine Vibrant ations. Human resource managers, reaised that they can no more perform thet job in a vacuum due to factors uPat of environmental tector on human resources, Now, we slut Impact ol htomal anviranmontal ‘human resource management. i Internal Environment: Intemal environmental factors consist of organisation structure, functional areas 'anegemsnt, viz., marketing. finance and production, human resource.a Management Environment and Stratos caerxotina management tas algnticunt ahs in tra customer tot qgarsinaon, cuales 1 retontion. ‘cusromiention Over ‘delightment over custornor satstacti ann Islacion, customer rlationship ma ot Trend shit demanded emesayvasutonmy ovr reguuton, apna te TIVE og ere rm he, Theor, Rumen rsoue® ranger aang wah marking ASS sake or 8 snarl and olemertprograrmes. TheTnalor kings nancial manageT™eT™ CT aig Tr2fen orpensturon Ruan escuca asa svalge vernon her han 98 COR. Sin sit 01, 9 werent on ainng ttaning Nh ailed employees hy otteing mmpatnive pay package On iaateed rg amoloyee Dorelis and servers. Shin produston and operations ManeGeT ee sonaregjon ovr sands radielaewees,fxbiy in rvine schedules sate ahianee® O10 Oe ations and Outsourcing over insourcing. These shits ted jo08, Hoxib1e i urcing. Thess to outsourcing ot employ’ $o0k30 ja nature of work and exible place of work Ogee norganssional structure ae prota Bureaucrat sates ae 0 MO" inpractice. parte Ti socor Business organisaons. Team siuctres and vnua structures © more ‘prevaient in those vale ne especial ulinatonal corporations. The shitin organisation structure Mas lrectimpact on ton arte wis losons war sche sper aT 9 arena. realisation of TIOYeS Sans eras ate eran inelude trade unions ‘proce UNIONS: rade unions have mustered stran .dustriatism until fad strength as a parallel tothe growth of i qgoon ney saudi conse ane ale power Back rman counties etn India. Issues rotates to 10 oysee Ne aie De a oe Re re ee management, wherever the (ae se oon eS ee eee ‘dwindling trend after 19808, 05 the eeeronerear i 2s eee ete e ee strategic asset SS eA formation of 1 yn-union organisations. Human resource managers can manage ‘employees base 10 izaional stalgi proach - Now, we shall discuss extemal environmental factors affecting human resources. qtoral Errore orcinsatonal Prosicton Fines Wanaeng Hurray RAD ewe source Extomal Micro Environment ‘AY Satketoiders, gharehokios Crecton Bankers and Compation Supplan ot Maviat Cuore Francal aw Matonela Ytermeiasoe and Otve nguts External Environment External environment includes extemal micro environment and external macro environ = External Micro-environment: Exterial micro environmental faotors include the external stakeholders ot the company. Thay are customers, shareholders/owners, market intermediates, suppliers of inputs like banks, financial institutions, suppliers of raw materials, outsourcing organisations and the Ke4% ; ca oe Serene % exprcimast neo sea oiner functional mar tomers ager #1070 ones, tring ree gh ares ran a ge erst 7 rowan rong te encnred are less qvaMaty 9 Sm ot ee capac. Tere MT ayaa ; cr raonees Cr en eH are etn We soc DOF hee Seer ree omens on etn aos 1 prom he Snare OTe epters of MPUtE AIKO expect mye eouantepporite® POT rngsants ASCH TSCA Taco Erg ners nv banks, MaIReL ICTS nquance the HA anager PSPS MOR aie ay err Otero moore enon wld Se ci one Fepuanoss ave 1 070%? ee ‘Extomat aero environment, ENP ton uonal and mata 131" posal nt on. gander, a9 00 WOMTEO a domegraphy. ‘social Environment ee nation etn rn ah an eee Tho shits 300 ee ha, ua eaPOO" TUES aerbiuen onc poe suro otemployment nan organisation changos, x canner on Sat ey an jad ibe and backward communities, thanks to goverment sae peice or tee een ae en ee se cpgreapaetan gee Ce lye cone en Oe repel her rane fees EN eee iy, These changes in workiorce have naturally complicated the task. eee a a e Pemnee nae areas ‘changes in Employee Rofes and thelr Values: twas the opinion of the management thatitwas the, o ‘obediently management's decision. But gradually, this relationship has boss and employees had to follow which employees and management are pariners in the organisations. eon replaced by the elationshi i FFurier, changing structure ofthe workforce has ledto the introduction of new values in organisations, “Among these are moves toward'— (@/emphasis on quality of fe rather than quantity; (b) equity and justice for tha employees over economic efficiency; (c)pluralism and diversity over uniformity and centralism; (0) participation coverauthonty; (a)personal convictions over dogma, and (fhe individual over the organisation. Alienation from the jab, increasing counter-productive behaviour, rising expectations and changing ideas of employees are some ofthe other factors responsible forthe changing values and roles of human force. Consequently, thas become imperative for the management fo provide various fringe benefits to Improve morale, to introduce negotiating machinery to redress grievance, to encourage employee participation in decision-making and the like, fo pave the way for industrial democracy to meet the situations of workforce. Another change in the values isthe shifing work ethics. Further, employees prefer flexible working hours {o fixed tima schedule. Fiexble schedules fit rot only withthe values of modem workfores but also benefit the ‘employer with the enhancement in productviy, reduction in employes tardiness, absenteeism and turnover, ‘improvement in morale and the ike. (6) Level of Education: Workers have been entering the organisations with increased level of formal ‘education in recent years. Increased formal education led to the changes in attitude of employees. The well yement's decisions and want a voice in the educated employees always challenge and question the manag companys affairs affecting their interest. “As the base of education broadens, management must plan to deal ‘suructure of Employment: Sirs ce rplovenaue est 2 ip) more temaie empIoy'SS ——— (onduroe Management Ew aunt WIENER ENtronmant and Strliion Efwellve manesemertot daraly provide various bonita othe company We tnoroated proba aolving abity of tho organisa : ncronsed aventin for crantivty tro, ty Ihrough Hateraganely. Gain compotiive advantage dua o varied ax {. Reduead cost of human rosourcoa az . Poriance and knowles, inthe City Prarme \d., in Australia and Papua New Guinea, pospiethese banat, managing curs fo following factors viow oft 'y Would be a chatlenging task to human resource managers in Fre naa and recal pena much more dversein the years to come as human resource romvarious © ‘Pe would in the labour force due a increased access to educmiona\ aciitias + Female employees will further grow in the yoars te com «Increase in dual-career couples, qechnologieal Factors Just as necessity is fhe mother of invention, competition and a host al ether reasons are responsible tor tne rapid technological changes and Innovations. Added to thi, strides in information technology brought significant Impact on human resource management. Consequently, technical personnel, and personnel specialisedin information technology are increasingly required while the demand tor other category of employees nas dwindled. But tis found that the former category of ‘employees is in short supply. Hence, procurement ot skilled employees and their increase in numbers to maich the changing job tequitements has become @ complicated task. In addition, not only new organisational relationships end differant motivational \echniquesto satisty the changed relationships, but also to retain technically skilled and efficient human resources will be required: Technology end Organteatlonal Structure: Technology, particularly information technelogy Influences tne organisational structure, relationships and the mature of managerial work, Major areas and functions of business like production, marketing, finance, HR and supply chain are now integrated with the Enterprise software Systems lke Enterprise Resource Planning, Oracle, SAP, People Soll, and Business Process loonginesting packages. Organisations gain immensebenetis lke efficiency, low cost, fastresponses, aficent inventory, better coordination and accurate decision-making, Human resource managers now experienced that these changes require new skils, increase in the number of managerial positions, introduction of alternative job assignments and opportunities for higher-level managerial postions. These sis, num, resulted the design of ial, team and vitual organisations. formation technology reduced the need for middle-level managers and low skilled employees. In addition, skill and ‘managerial educational requirements tend to increase due to information technology. Informetion technology, would make the manufacturing much shorter developmental cycles.Persenneland Human Resource ig, ae wows ent ring fates SY tor een: ered ra ey oer eee ho managment anlar nano ta anpeyen rn Tn ae tgs Ze knowtaioe power aroecn, Tose mnt en SPW naan omeniatans Sarena | tities proc structures axructres an rere, ON. aN Tome ota ene pan pre ea eens See eS resutin do-empasi on managoral sate new suseror ora sr power as Impacton Hf: iter maton wera ost HE es mrearicg aA etn, prea eg Hs etivare: winnie Posen ORT pean eparmont ionic op a, inks 1 ronan aan sricelotetave Te reseperment nea SPASMS Nay eal arm's engin wna ca sanse tne erganicatona eulure and Kate Economic Environment 1 country, economic policies, national m of 8 ferent kinds of labour, , 1a supply of diferent volar ang Economie environment consists of economic system 0 er capita income, wage level and structure, demand fo rection of comeste and intemational rade and: agement include WAGE NE S3INYleely 7 flow of labour force to various gy various sectors and industries, ably ofthese sectors to atact abou ow of stor, ‘and irom one to the other sectors. Political and Legal Environment stature, Political envionment consists of institutions ike fgiststre, XC Oe. cover lpstutons at Central and Sata eves act varus ls nus our ove Te at acct resource management areas in Various esource management in the areas oy executive and judiciary. The legisiatiyg organisations. Thus, political environment has direct SO iabour lows! ‘enacting. implementing and ensuring the process of implamentatio’ a, The important labour laws enacted nica afectng HRM are: The FacloPes AM Ee Tn ance et 1826, Te Payment of Wages At, 1996, Te Minimum Wages Act. 1948, The EMpovere ne ey 1948, Workmen's Compensation Act, 1623, The Payment of Bonus Act, 1965, Tre TC ae ees {Sianding Orders) Act, 1846, The Employment Exchange (Compulsory Nouns DO te c Payment of Gratuity Act, 1972, The Maternity Benefit Act, 1961 and The APP and thoi ace In addition to enacting and implementing labour laws, poitical stability, eis naturally affect 2nd political gimmicks, formation of new patties, spits in and amalgamation So er onrialy crn sre flan esource management ae unions. This ntum resuisin ina and ND ee of NeW trade unions, spits in and amalgamation of existing trade unions. rand atta ihe resent phage ot complicate the tasks of HAM, However the role of trade unions is on declining tre globatsation. International, Environment i nal hieretonal envionment consis ohismatonlorgansaten, poles ante operation of minors companies (MNCs) and transnational companies (TNCs).As indicated earlier, Coon eerie The role of shifts in human resource management via enhancing and broadening the genio se epar erecta Intemational Monetary Fund and World Bank Is immense in the globalisation, Pe eae process enabled inthe recent years, The establishment of World Trade Organisation along with global——————— ee neue nc Hons and management practt a : woriionanieeomnnt =o INGs and TNCS adept mara suceonsul human source mann in 7 id a Sn = ourea managemont practens of tne progressive MNCS cron 10 in 18 eo eoapte Barer haan 1 rue. nirnational entrant xiuancos y JriCh. Fp of HAM du 1 compnion Ruoncos the human resouTes managerem sa adsstog me PAS, ‘othr MNCS avo 3 yy say HM Environment? «geannind ol HAM environment dont organisati resources seam porns andes tothe agen -Ganisational strengths and woaknonses in human (es 103 oaks ce sation in HA area rom the exomal vironment. The BNA nstron -eppertunitios (SWOT) and threats wouldhwlg the HA managerst0t iat ourea sategies thoze would rma 3PP00 puma a in understanding and cx alan wih tha organisational svatogiesThus, tne stay of HA BeNsOneT= oulane! ating human resource strategies gTRATEGIC HUMAN RESOURCE MANAGEMENT Kalyan iteralional Hospitals Limited aver soon Jo the Snipers Be coer ata ee! quality anc tow prico suateay: mntry ate this strategy was due to the low salary cost in the fore\Gh coun ine ably ofthe cor Wyo Fomor ae a eee equipment. The company vost na and failed to provide even, medical technology andequipment. The company ‘aned commercial oprah ena) the eeu revealed tae dover eat nave Consoquerty,tlies to atract Provide high quality treatment. thal the doctors dirt have required skills in enical aroas to ster @year ols painful eaema FS eer eee ee ae hospital to the foreign country oy erring na Dapeter f mraon toe oh cou th eel dont possess * patonts| TE SE eee eons heir atficiency andtreated on gi eee vend financially Siticul JOUNGY as eee ae ee itimately the company incurred iu lor a cuRnoks i Veena ee ete tence poate quality anctigh orice suman resource environment corect @ company to break-even ts financial position. Thus, failure 9 Seah bare: ly pushed the company to adverse situation and change the corporate: | INTRODUCTION Analysis of this case human pep eee that, company’s strategies should be formulated by considering sno fact, the consequences of liber 'e human resources should be managed based ‘onthe company's strategies. In. se alisations, privatisation and globalisation, viz, competion, cual, OW Goel Ce Ty, Customisation and customer relationship, the human ‘made the CEOs of various companies to include the human resource aspects in the strategic management process an . manage the human resources tpased on the companies’ stratagies. Moreover, the vital aspect in strategic m js the human resource ranagement.As Such, strategi anagementist pe ci Non ieee See Se resource management gained its significance in the postiberalisation ee manager, in most ol the companies, is a member of strategic management team.