How Do The Environmental Factors Namely Political, Economic, Social And Technological Factors Affect Human Resource Management?

The environmental factors are very important in determining the behavior and the response of the HRM. Some of the key points are as follow:
Political: Political uncertainty directly impact like if there is a procession going on and roads are blocked then how employees can go to office
Economic: If there is high inflation employees will demand more and if there is rapid economic growth then more employment opportunities will be available and in good economical conditions skilled labor is also easily available.
Social: If women are not working in any state then major chunk will consist of male and social interaction will be different.
Technology: new technology requires new expertise and in a high tech company skilled HR is required and vice versa.

Add Comment

Report

Hi,
a PEST or PESTLE analysis is a tool to provide a framework to look at the external factors on an organisation.
How is this relevant? Well f the external review showed WHY you had difficulty recruiting (skills shortage, salary rates, etc) then your HRM strategy could and should be adapted to cope with the difficulties created by the environment - equally if you has vacancies and there was a large pool of people applying then you may well change your recruitment strategy to cope with the increase in applicants.
External influences also impact training, L&D and many other HRM strategies.
Check out:

The CIPD
How to write A PESTLE analysis for HR

Add Comment

Report

A PEST or PESTLE analysis is a tool to provide a framework to look at the external factors on an organization.
How is this relevant? Well f the external review showed WHY you had difficulty recruiting (skills shortage, salary rates, etc) then your HRM strategy could and should be adapted to cope with the difficulties created by the environment - equally if you has vacancies and there was a large pool of people applying then you may well change your recruitment strategy to cope with the increase in applicants.
External influences also impact training, L&D and many other HRM strategies.
Check out:

Add Comment

Report