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Human Resources Management

The 6 External Factors Most Affecting HRM

19 December 2022
Internal vs. external: What is the difference in HRM? Check out this article for a comprehensive explanation.

Human Resource Management (HRM) has to consider a lot of different factors when making decisions. Not only do they need to think about the company as a whole, but also about each individual employee.

There are many internal and external factors that can affect HRM, but in this blog post we'll be focusing on the eight external factors. These include things like government regulations, economic conditions, and societal norms. Keep reading to learn more about how these external factors can affect HRM!

The political environment in which HRM operates

The field of Human Resource Management (HRM) is constantly shifting and adapting to the often-fluid political climate in which it operates. For HRM professionals, staying up to date with current and emerging politics can be just as important as understanding strategic initiatives and organizational structures.

Keeping abreast of policy changes, legislative policies, executive orders, social movements and the general public sentiment are all necessary for HR departments to remain up to date within their industry. As political issues become business issues, it is more important than ever for HR professionals to comprehend the larger political environment so that they remain ahead of any potential pitfalls or legal disputes down the road.

The economic environment and its impact on HRM

The economic environment has a significant impact on HRM practices. For instance, when economies experience high levels of growth, businesses often need to recruit extra staff and HR departments can face new challenges in finding the right individuals for certain positions.

In tough economic times, companies may need to downsize and manage layoffs; this is where a strong HR department can help ensure that the process is handled accurately and with respect. Ultimately, an HR department helps to safeguard an organisation's bottom-line by driving operational efficiency while also providing non-financial employee benefits that keep employees motivated and happy.

Social factors affecting HRM

Human resources management (HRM) is a complex field that takes into consideration many different aspects, including those related to the social environment of a company. Social factors such as cultural diversity and employee morale play a role in how HR functions within an organization.

Companies must be aware of these social considerations when making decisions about training methods and performance evaluations, as well as hiring and firing practices since they can have a big influence on productivity and satisfaction.

Additionally, companies should provide support services such as childcare, mental health benefits, and work-life balance initiatives in order to promote positive interactions among team members and achieve better overall results. Taking into account the social aspects of HRM is essential for creating successful teams that take pride in their work and can meet their goals efficiently.

Legal factors impacting HRM

Human Resources Management (HRM) is an ever-evolving field, and legal factors often play a major role in how HR management is carried out. Since HRM deals with issues like employee hiring and retention, as well as salary administration and other topics requiring careful consideration of the law, staying on top of the most recent changes in legislation is a crucial part of the job. In order to operate successful HR strategies, managers must be aware of the laws governing things like discrimination and termination.

Furthermore, addressing possible risks related to health and safety has become an increasingly important part of managing an organization's human resources. Ultimately, when handled responsibly, knowing how laws relate to HRM can lead to better decisions about how best to manage labor for both employers and employees alike.

Technological advances and their effect on HRM

Technology has revolutionized the way companies manage their human resources (HRM). As technology evolves, organizations are able to streamline routine tasks and organizational processes, freeing up valuable employee time. This is allowing executives and HR teams to take a more strategic approach to their HRM activities, such as recruiting and retention.

Organizations are now taking advantage of automated background checks, interviewing technologies, applicant tracking systems, performance management tools and software, and more. Having the ability to access data quickly and efficiently has drastically reduced HR costs while improving employee morale by reducing delays in processing paperwork or obtaining services.

Technological advances have enabled companies to create efficient processes that enable businesses to focus on areas such as organizational development and employee engagement. The combination of automation and better planning has powerfully improved the overall efficiency of Human Resource departments around the world.

Environmental sustainability and its connection to HRM

Human resource management plays a critical role in creating and supporting environmental sustainability initiatives. By carefully considering the human resource needs and capabilities of the organization when planning for environmental goals, success is more likely to be achieved. Without considering the skill sets, training and technology needed by employees - as well as their commitment to sustainability - an organization has far less chance of setting and meeting ambitious goals.

HRM can help identify what learning and development activities will be needed to reach these objectives, then coordinate them around core business operations so that everyone is working together on reaching the desired outcome.

Finally, proper tracking and review processes should be put in place to measure progress on developing a truly sustainable future. These actions are extremely beneficial to an organization's societal contribution — and competitive strength — both now and in the future.

Human resource management is a field that is constantly evolving and being impacted by factors both within and outside of the control of HRM professionals. To be successful, HRM practitioners must be aware of political, economic, social, legal, technological, and environmental trends and how they might impact the function of HRM within organizations. By keeping up with these trends, HRMs can ensure that their practices are aligned with the needs of their organization and its stakeholders.

hrm human resources Human Resource Management HRM Legislation Discrimination Termination Health and Safety Risks Technology Revolutionized Companies Automated Background Checks Applicant Tracking Systems Performance Management Tools and Software Environmental Sustainability Initiatives
Bilal Senturk
Bilal Şentürk
Blogger

He completed his undergraduate studies at Celal Bayar University, Anadolu University and Istanbul University, and a Master's degree with thesis on Human Resources Management at Yıldız Technical University and Business Management at Beykent University. He is currently writing a doctoral thesis on human resources and consulting businesses on human resources.

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