HRM:

ENVIRONMENTAL
INFLUENCES
Presentation - 2023
Cyrel Canedo
 External Environment Internal Environment

• Inside the organization

• Outside the organiztion ⚬ Strategy
⚬ Government laws and regulations ⚬ Goals
⚬ Union procedures and requirements ⚬ Organization Culture
⚬ Economic Conditions ⚬ Nature of the Task
⚬ Labor Force ⚬ Work Group
⚬ Leader’s style and experience
 Government Law and Regulations
• It influences HRM activities, policies, and
programs.
• When an organization makes decision about hiring
, promotion, managing, diversity, performance
evaluation and downsizing and discipline , it must
weigh the impact of government regulations.

In the Philippine setting, we follow the guidelines of

Department of Labor Employment.
Challenges Government on Regulations
and Laws
• Regulation encourages simplistic thinking on complicated
issues. Small enterprises are treated like large ones.
• Different industries are regulated alike. Designing and
administering regulations is an incredibly complex task,
leading to very slow decision making.
• Regulation does not encourage mutual accommodation but
rather leads to complicated legal maneuvering.
• Many regulations are out of date and serve little social
purpose, yet they are not eliminated.
• There is increasing evidence of regulatory overlap and
contradictions among different regulatory agencies.
 The Union

An organization that represents the interests of

employees on such issues as working conditions, wages
and salaries, fringe benefits, employees' rights, grievance
processes, and work hours.

There are cooperative and combative unions and

sensitive and socially irresponsible organizations.
Economic Conditions
1.Productivity
⚬ defined as the output of goods and services per unit of
resources used in production.
⚬ Inputs, as applied in productivity measurement, are
expressions of the physical or dollar amount of several
elements used in producing a good or a service, including
labor, capital, materials, fuel, and energy.
Before productivity can be effectively managed and improved,
it must be measured.

2. Work sector of the organizations

⚬ 60% are private sector (owned by individuals, families,
and stakeholders)
⚬ 30% public sector - part of the economy owned and
operated by the government.
⚬ 10% 3rd sector - Non-profit organizations
￭ museums, private schools, and colleges, nursing
homes, and voluntary organizations.
Composition and Diversity of the
Labor Force
• Age: The age distribution of the labor force is an important factor. It includes
various generational cohorts, such as Baby Boomers, Generation X, Millennials,
and Generation Z. The age of the workforce can impact skill, retirement trends,
and workforce planning.
• Gender: Gender diversity in the labor force refers to the presence of both men and
women across different industries and occupations. Gender imbalances can affect
workplace dynamics, pay equity, and representation in leadership roles.

** IN 2007, about 48% of the full-time US workforce are women.

• Immigrants/Minorities
• Language
• Religion
• Race

Geographic Location: The geographical distribution of the labor force within a country
or region can influence economic development and job opportunities in different
areas.

Different factors also influence the Labor Force:

• Educational Factors
• Behavioral Factors
• Legal-Political Factors
• Economic Factors
 Internal Environmental Influences

Strategy
HRM must align with the overall strategic goals and
objectives of the organization. The organization's
strategic direction and priorities can shape HRM
priorities and initiatives.
Goal
The goals of organizations differ within and among
departments. All departments probably have goals
that include employee satisfaction, survival, and
adaptability to change. HRM related goals are highly
regarded by Decision Makers.

Organization Culture
‘Refers to a system of shared meaning held by Nature of task
members that distinguishes the organization from the Describes HRM as effective matching of the nature of
other organization. the task/job with the nature of the employee
performing the task.
An organization's culture, including its values, Other Factots attracts applicants/workers:
beliefs, and norms, plays a vital role in shaping HRM • Degree/Knowledge of usage of IT
practices. A culture that values innovation may • Empowerment and Physical exertion
prioritize talent acquisition and development • Location and Travel time
differently from a culture that values stability and • Variety of task and Task identity
tradition. • Task differences and job design
 Work Group Leader Style and Experience
Consists of two or more people who consider themselves a group.
Interdependent and communicate with one another to accomplish one goal.
The leadership and management style
An effective group in one of the following:
• Members function and act as a team
of top executives and managers can
• Members participate fully in group discussion influence HRM. Leaders set the tone for
• Group goals are developed.
HR policies, employee engagement, and
• Resources are adequate to accomplish group goals.
• Members furnish many useful suggestions leading to the achievement of how they handle HR-related issues. The
goals. operating manager or leader is a crucial
Most effective work groups consist of 7 to 14 members, as per research. link in the HRM function.

** Operational and HR managers who desire success in such programs

should at least consider permitting work group participation in designning
and implementing HRM.
REFERENCE:
A Strategic Management Approach to Human Resource Management