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ENVIRONMENT OF HRM - PowerPoint PPT Presentation

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ENVIRONMENT OF HRM. Human Resource Service Human Resources Planning Recruitment Selection Induction and Orientation Training and Development Appraisal Promotions Transfers Demotions and separations in educational institutions. . OBJECTIVES.

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Human Resource Service

  • Human Resources Planning
  • Recruitment
  • Selection
  • Induction and Orientation
  • Training and Development
  • Appraisal
  • Promotions
  • Transfers
  • Demotions and separations in educational institutions. 


Identify the environmental factors that have bearing on HRM

Describe each environmental factors and

its impact on HR functions


Environment may be understood as all those forces which

have Their Bearing on the functioning on the HR


  • The forces are

1.External forces

2. Internal forces


Political and legal


Organisational cultural conflicts


Professional bodies



External forces

Political and Legal:

There are three institutions which together constitute the

total political environment. They are -i) the legislature,

ii) the executive, and iii) the judiciary.

i) The legislature - The legislature also called Parliament

at central level and Assembly at the sate level, is the law

making body.

ii) The executive – The executive popularly known as the

govt, is the law-implementing body. The legislature

decide and the executive acts.


iii) The judiciary – Above this two is the judiciary which

has the role of watchdog. The main function of the

judiciary to ensure that both the legislature and the

executive work within the confines of the constitution and in the public interest.


All HR activities are affected in one way or the other by

this political and legal system prevail in the society.

To be specific, HR planning, recruitment and selection,

placement , Training and development, remuneration,

employee relations and Separation are conditioned by

constitutional provisions.



Economic environment refers to all those economic forces

which have bearing on the HR factor.

Suppliers – For HR dept, suppliers are those who provide

human Resources to an organization.

Ex: Consulting firms, training institutes

Competitors – Competition plays significant role in HR

function and Activities. Organization need to groom its

employees through well managed HR planning programmes

to withstand competition.

Customers – Customers have their own influence on

companies personal Functions . So everybody in the orgn

must endeavour to offer products which gives satisfaction

for the money customers pay.


Technology :

Technology plays a vital role in HR functions, in order

to make people more intellectual and efficient.

With the advent of technology, jobs tend to become more intellectual or upgraded. A job hitherto handled by illiterate or unskilled worker now requires the service of an educated

And skilled worker.

With the technology up gradation in the orgn job holders will become Highly professionalized and knowledgeable.


Cultural forces :

Culture refers to the complex whole which includes knowledge,

belief, art Morales, laws, customs and other capabilities and

habits acquired by an Individual as a member of society.


“Hire the right people and let them free”

“ They are known for their professional approach”


Internal forces

Unions :

A firm’s personal activities will be influenced by it’s own union’s

as well as the union’s of other plants.

A trade union may be understood as association of workers or

management formed to protect their own individual interest.

All HR activities like recruitment, selection, training,

compensation are carried out in consultation with union leaders.


Organizational culture and conflict :

Every orgn has its own culture. Organizational culture is a

product of all the orgn’s Features.

Organizational culture reflects the past and shapes the future

Eg: Objectives can be achieved in several acceptable ways . Means

there are usually Multiple paths to objectives. The key to success is

picking the path best fits the Organizations culture.

There is often conflict between organisational culture and

employee’s attitudes. Conflict arises because of the following


Eg :

Personal goal v/s organisational goal

Personal ethics v/s organisational ethics

Rights v/s duties


Professional Bodies :

The impact of apex body, National Institute of Personal Management ( NIPM). On HR expert is minimal (National Local Organization on HRM).

The NIPM Provides periodic training Programmes,

seminars and conferences to HR professionals which

they can Implement In their organisations and increase

the productivity.

NIPM offers post-graduate diploma in personnel

management. The diploma is recognized by govt of Rwanda

For the purpose of recruitment to superior post and

Service under the government