1. Dynamics of Human Resource Management Environments
3rd Semester
BBS/MPA (Morning) Program
Session
Date: Wednesday, August 31, 2016
Chapter 3
Dynamics of Human Resource Management Environments
Reference Books:
Human Resource Management ( Gary Dessler)
Human Resource Management (Mondy)
Human Resources and Personnel Management ( Keith Davis)
Internet
Resource Person: Furqan-ul-haq Siddiqui

2. Managing Human Resources
Purpose of HRM is;
To attract
To Develop
To Motivate and
To Keep talented people
To achieve goals
Challenges?

3. EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT
Environment (Challenges) of HRM
EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT
Legal consideration
Labor Force
OPS
Mkt
Staffing
Human
Resource
Development
Employee
& Labor
Relations
The Economy
Society
Budget
downsizing
HR Management
Functions
Safety
& Health
Compensation
& Benefits
Brain drain
technology
Fin.
O F A
Turn over
Customer
Unions
Competition
Share holder

4. The External Environment Components
Labor Force
legislation
Society ( Social Responsibility)
Unions
Stakeholders
Competition
Customers
Technology
Economy
Brain-drain
Rapid change
Open System- An open system is one that is effected by environments
Firm has little control over external factors

5. Labor Market/Force
Labor Force- it’s the pool of individuals who are willing to work for a company.
The capabilities of a firm’s employees determine, to a large extent, how well the organization can perform its mission.
Because new employees are hired from outside the firm, the labor market is considered an important environmental factor.

6. Legislation The Government regulation related to HR & labor force
Employment laws
Laws and Regulations
for safety
Minimum wage rate
EEO
Working hours
Immigrants
Child Labor
Women
Working Hours

7. Customers The people who actually use a firm’s goods and services.
Because sales are crucial to the firm’s survival, management has the task of ensuring that its employment practices provide excellent customer support service.
These conditions relate directly to the skills, qualifications, and motivations of the organization’s employees.

8. Competition
Firms may face intense competition for both their product or service and labor markets.
A firm must also maintain a supply of competent employees if it is to succeed, grow, and prosper. But other organizations are also striving for that same objective.

9. International Dimension/ Globalization
The extent to which an organization is involved in or affected by business with other countries.
The internationalization of products and services of a firm heavily influence organizational HR decisions.

10. Economic Environment
The overall strength & vitality of the economic system in which organization operates. Factors that affect buying power and spending patterns of organization & its customers/suppliers.
Trends of interest:
Inflation
Interest Rates
Employment ratios
Per Capital Income
Purchasing power of customers
Stage of Business/Economic Cycle (prosperity, recession, depression and recovery)

12. HR Technology The rate of technological change is staggering.
The development of technology has created new roles for HR professionals but also places additional pressures on them to keep abreast of the technology.
With the increased technology sophistication has come the ability to design a more useful human resource information system (HRIS), which is any organized approach for obtaining relevant and timely information on which to base HR decisions.
Cloud computing, a means of providing software and data via the Internet.

13. The Internal Environment
Limited budgets
Trends of Downsizing
Workforce Diversity
Mergers & Acquisitions
High Turn over- is the rate at which an employer gains and loses employees or the rate of traffic through the revolving door."
Restructuring-the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs.
Internal Unions

14. Corporate Culture
Corporate culture refers to the beliefs and behaviors that determine how a company's employees and management interact and handle outside business transactions. Often, corporate culture is implied, not expressly defined, and develops organically over time from the cumulative traits of the people the company hires.
Employer Branding is the firm’s corporate image or culture created to attract and retain the type of employees the firm is seeking. It is what the company stands for in the public eye.

15. Proactive Versus Reactive
Reactive Response: Action taken in response to change
Proactive Response: Action taken in anticipation of change