HRM 406

Environmental factors: influence on HR management

6oriented. However, the policies must function for
employees in other parts of thecountry that are
perhaps first generation wage earners and whose values
and needsare quite different. Therefore, it should not
come as a surprise if the company hasdifficulties in
getting its message across to and accepted by front
line employees.
Culture refers to the complex whole which includes
knowledge, belief,
artM o r a l e s , l a w s , c u s t o m s a n d o t h er c a p a b i l i t i e s
a n d h a b i t s a c q u i re d b y a n Individual as a member of
society.E.g.: Tata and L& T Tatas culture Hire the right
people and let them freeL & Ts culture They are
known for their professional approachSo different kind of
racial, relational, regional, educational backgrounds mixup
in a organization. Another issue is the employees
attempt to balance apersonal life with an even more
encompassing work life. That is the cause
of m o s t o f t h e e m p l o y e e s c u l t u r a l s h o c k. T h e y c
a n n o t ke e p p a c e
with thec u l t u r e t h e m w o r k i n g w i t h . S o i t i s d i
ffi c u l t f o r H R p e r s o n n e l t o m a k e a balance
considering all the social and cultural factors that is
infl uencing itsemployees by different point of views and
thoughts. SO HR is becoming moreupdated an important
in an organization.Social responsibility as a managerial
obligation to take actions that protectsand improves
both the welfare of society as whole and the
interests of
theo rg a n i z a t i o n . I n re c e n t y e a r s th e re h a v e b e e n
m u l t i p l e c o r p o r a t e e t h i ca l issues that have influenced
social views on corporate America. The numberof high
profile scandals, from Enron to MCI WorldCom, has
adversely affectedpublics perception of corporate
strategy as it relates to decisions that affectshareholder
and employee interests.
Demographic Factors

Demographics, it is the study of population statistics,

affects HR profoundly. The influence of women in work
force, the Gen X, Gen Y all influences the HRpolicies
in a certain level of analysis. Demographical
factors are Infl uencingfrom the beginning of human
race in the world in management. The supply workers
were the baby boomers. Then Gen X workers are highly
effective
int e r m s o f p r o d u c t i v i t y a n d o r g a n i z a t i o n a l b o
n d i n g . S o d a y b y d a y H R i s changing and also the
trend of HR activities and its different aspect. With
thedemographic variations HR activities in different places
of the world. Such asChina HR policies are different then
Americans. South Asian people are
alsod i ff e re n t s o t h e w h o l e m a n a g e r i a l p ro c e s s i s
d i ff e re n t . D e m o g r a p h y i s a f a c t o r
that is changing the
t re n d s o f H R a c t i v i t i e s, p o l i c i e s a n d
o v e r a l l strategies of an organization.

HRM 406
Environmental factors: influence on HR management
7
Internal Factors: The Stakeholders
S t a ke h o l d e r s a re t h e g ro u p o f p eo p l e w h o h a v e
i n t e re s t i n t h e
p ro j e c t , p o l i c i e s , o r o u t co m e s o f a n o rg a n i z a t i o n
s d e c i s i o n . S o m e t i m e s c a l l e d constituent groups,
they follow the actions of the organization and lobby
tohave their interests satisfied. These stakeholders affect
strategy formulationwhich is the main mission of HR
department to achieve. So these people alsohave major
effects on the HR management of an organization.Stakes
holders are divided into categories based on their
nature of interestwith the company. They prefer different
outcomes from different strategies. To deal with these
stakeholders it is a great challenge for HR personnel
tosatisfy them and continuing the smoothness of the
organizations activity.Stakeholders can be classified
into below categories:


Shareholders
those who owns shares of
t h e company

Customers
who are the main motive of a companyto run the
profit bringing party, are them.

Suppliers
- can influence the skill level of their clientsemployees by
interchanging this skills and experiences.

Government
- The govt. gives extensive
assistancew i t h i m p l e m e n t i n g e m p l o y m e n t e q u i
ty programs infederally regulated corporatio
n s , t h u s e n c o u r a g i n g sensitivity, training, and
skill development not only
ine q u i t y m a t t e r s b u t a l s o g e n e r a l l y i n m a
n a g e m e n t change program. BIU, BYDO these are the
organizationsof Bangladesh govt. to develop skills of its
people.

Public
An increasingly important stakeholder is
thec o m m u n i t y i t s e l f . E v e r y t h i n g o f a n n o r
ganizationin cl udi ng HR pol ic ies mus t b
e s u p p o r t e d b y t h e community where it runs its
operation.

Un ions
A firms personal activities will be influenced byits own
unions
as well as the unions of other plants.
At r a d e u n i o n m a y b e u n d e r s t o o d a s a s s o c i
a t i o n o f w o r ke r s o r m a n a g e m e n t f o rm e d to p ro
t e c t t h e i r o w n individual interest.
All HR activities like
recruitment,s e l e c t i o n , t r a i n i n g , co m p e n s a t i o n a re
c a rr i e d o u t i n

HRM 406
Environmental factors: influence on HR management
8
consultation with union leaders. E.g.: The Bokaro steelp l a
n t h a s 6 8 t r a d e u n i o n s. C a l c u t t a C o r p o r a t i o n h a s
about 100 trade unions.

The Employees

Sometimes organizations strategy isinfl uenced by the

kinds of competencies of it employees.
If e m p l o y e e s a r e m o t i v a t e d , c o m m i t t e d a n
d fl e x i b l e , t h e organization might be more willing
to grow rapidly to becomethe market leader easily.

To p M a n a g e m e n t
M u c h o f t h e H R p l a n n i n g recognize
s the powerful decisions of CEO leads aor
ganization to the attainment of its goa
l . S o f o r influencing the HR policies effectively top
managementm u s t c o n c e rn a b o u t t h e o v e r a l l s t r a t e
g i e s a n d a v o i d f a v o r i t i s m a n d o t h e r u n e t h i ca l a c t
i v i t i e s t o ke e p t h e climate more motivating for
the employees.
Conclusion
HRM strategy is determined primarily by
organizational strategy. Howeverthe environmental
factors that shape the HRM planning must be
consideredb y t h e m a n a g e r s a n d t h e p l a n n e r s . T
h e y m u s t c o n t i n u e t o m o n i t o r t h e environment
to get the outmost benefits from its operations. All the
factorsthat are infl uencing externally or internally
on an organization it must beconsidered by
the managers very seriously. Coz the
HR management is thesystem that can influence,
motivate and get to work the whole workforce of i t to
a c h i e v e a l l t h e g o a l s o f i t. T h u s i t ca n b e s a i d
t h a t H u m a n re s o u rc e management
should always be concerned

about the environmental factorsthat infl uence the

HRM and be ready to keep pace with it for the long
termgrowth of an Organization.