Dynamics of Human Resource Management Environments 3rd Semester BBS/MPA (Morning) Program Session 2015-2017 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

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

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

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

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.

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

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.

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.

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.

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)

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.

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

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.

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