The impact of the environment on human resources management

Posted on Oct 18, 2021 at 08:10 PM

The environment has a significant impact on human resources since it has driven businesses to focus on hiring skilled individuals. It also influences the amount of technical progress and the degree of salary disparity between regions. It also has an indirect impact on human resources through influencing the internal environment, such as the company's culture, policies, procedures, and goals.

In the workplace, human resources is a department responsible for managing all aspects of the workforce. The human resources environment is one of the elements of the social environment that includes everything related to human resources and the benefits they provide. HRM refers to the administrative responsibilities related to recruitment, development, and protection of the employees to carry out an organization's work and reach its goals.

A human resource's external environment contains many factors, the article will discuss a few of them. These factors are beyond the boundaries of the organization and beyond the control of human resources, and therefore any change of these elements constitutes a danger to the organization, we attribute this to the fact that the organization is not separate from the outside world, but rather it’s an open system that Impact and is affected by the outside world, and thus the emergence of opportunities and threats.

Consequently, it is critical for human resources strategic planning to consider external factors to make human resources decisions more efficient and effective in the face of challenges and opportunities, The following are some of the external factors:

Technological factors:

Innovations and developments in technology alter the way businesses operate since they enable them to grow, better their image with stakeholders, and so generate more revenues, as well as the opportunity to raise employee compensation.

As a result, individuals with a technical talent that allows them to use technology in their work are becoming more valuable, and this includes employees in various departments, including human resources officials.

As it has become possible to carry out various human resources management processes electronically, technological development helps human resources to develop their way of working and their management of the human element, such as the development of selection processes, recruitment, training, performance evaluation, and determining salaries and wages.

Technological development contributes to reducing human resources costs, for example, the organization may find, as a result of its use of new technology, that it needs two workers instead of three, and remote work reduces the costs of space and transportation.

Employees who are successful in utilizing old technology may be dissatisfied with technological change and progress since it is different from what they are accustomed to, and the need for employees with high technical abilities may grow, as will the expense of employee training. 

Economics factors:

The organization is affected by various economic factors, such as the general economic situation, economic policies, GDP, and inflation, and the changes that occur in the organization as a result of various economic factors are reflected in the change in human resources management, for example, the deterioration of the economy contributes to an increase in unemployment rates, forcing human resources management to reduce the number of employees.

This means that when it comes to human resources planning, it's critical to consider not only the current economic situation and how it's changing, but also to prepare for economic downturns and crises at both the local and global levels.

Because of globalization, the world has become more interconnected, the local economy is influenced by the global economy. The larger the country's economy and the more open it is to the world, the greater its impact on the global economy, which means that the global economy has an impact on human resources management.

Labor market:

Organizations demand people with certain talents to carry out their tasks, resulting in fierce rivalry for qualified manpower. To compete in this market, the company must improve and plan its human resources management, and it may benefit from training courses to improve its competitiveness.

Individuals demonstrate their ability to create the supply side of the labor market despite demographic differences such as gender, the salary they demand, marital status, and educational attainment.

New people enter the labor market regularly, but experienced workers retire, necessitating the search for a qualified replacement. This necessitates career succession planning, and it is possible to benefit from Advanced Selection, Interviewing, and Recruitment training course to learn how to deal with this challenge even better. 

Employer requests: 

Human resources differ from one industrial sector to another, as each has its own set of characteristics, necessitating the adaptation of human resources management to these characteristics, as well as the training and recruitment of employees to suit them.

Similarly, the changes that organizations are facing necessitate changing human resources management's requirements for the workforce required to meet these changes, as well as training current employees on new skills to adapt to these changes. such as continuous employee development and empowerment training course.

Legal factors: 

The legal environment comprises numerous government-enacted legislation that the human resources department must follow. If the human resources department fails to consider the legal elements of its job, it may face issues with the legal authorities, which might lead to the organization's closure.

The business is in danger of new regulations requiring human resources management to adapt to change to avoid difficulties with the government, which might have an impact on all human resources management operations.

Conclusion: 

A variety of factors influence the external environment for human resources, including technical, economic, legal, labor market, and employer requests.

The external environment has a dual influence on human resources management since it impacts both the company as a whole and human resources and its different functions directly.

Because human resources are accountable for the organization's most important assets, organizations fight to get talented human resources who can help the organization achieve its goals. and these organizations are also eager to develop their employees continuously.

Attending HR training courses in Dubai is one of the ways to improve employees' abilities and give them the knowledge they need to stay ahead of the curve in the field of human resources.