Environment & HRM (Compatibility Mode)
Environment & HRM (Compatibility Mode)
Session Outline
What is Business Environment? Approaches to study the relationship between Environment & HRM Stakeholders External Environment Challenges to HRM from the Environment
Stakeholders
Any constituencies in the organizations environment that are affected by the organizations decisions and actions
Organizational Stakeholders
1/6/2012
External Environment
Demographic
Globalization
Managing Change
Cultural Political
Economic Natural
Developing Human Capital Market Responsiveness Cost Containment
Technological
Globalization
Trend toward opening up foreign markets to international trade and investment
Technology
Manual Labor to Knowledge Workers Implementation of Human Resource Information Systems
Change
Trend toward opening up foreign markets to international trade and investment.
Reactive change Change that occurs after external forces have already affected performance Proactive change Change initiated to take advantage of targeted opportunities
1/6/2012
Containing Cost
Downsizing The planned elimination of jobs (head count). Layoffs Outsourcing Contracting outside the organization to have work done that formerly was done by internal employees. Off-shoring The business practice of sending jobs to other countries.
Containing Cost
Employee Leasing The process of dismissing employees who are then hired by a leasing company (which handles all HRrelated activities) and contracting with that company to lease back the employees
Cultural Changes
Demographic Changes Diversity Changes Changing attitudes towards work Balancing work and family