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THE HUMAN RESOURCE ENVIRONMENT

Instructor: LTT Xun 1

Content

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Foundation of business environment

Forces in the Organizational Environment

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Copyright McGraw-Hill. All rights reserved. Instructor: LTT Xun

Foundation of business environment

External environment

General environment Task environment

Economic Forces Suppliers
Technological Forces Distributors
Sociological Forces Customers
Demographic Forces Competitors
Political and Legal Forces
Global Forces

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Foundation of business environment

Internal environment
Organizational culture
Mission & Vision
Strategy
Internal stakeholders
Labor relations

Instructor: LTT Xun 5

Environment in HRM

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Environment in HRM

Systematic view on HRM:

Adjustment

PURPOSES INPUTS PROCESS OUTPUTS

Feedback

External & Internal Environment

Open-system model
Instructor: LTT Xun 7

Environment in HRM
Systematic view on HRM:
Enterprise is a system and HRM is a series of activities in that
system
Enterprise is an open system
HRM and other activities: influencing each other and be
influenced by environment

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External environment influencing HRM

Economy
Economic cycle (Growth/Decline): competition for labor:
number and skills of employees
the pay related to the occupation
Intellectual economy
Population and labors
High population => cheap labor
Surplus of high-educated labors and shortage of skilled workers
Brain drain
Increasing number of women labors and aged labors

Instructor: LTT Xun 9

External environment influencing HRM

Laws
Labor law (1995): strike,
Socio-cultural forces:
Cultural norms
Different cultures in workforces
Changing in learning culture from passively to actively
Competitors
Competition for HR the most valuable resource
Competitive personnel policies: working environment, payment
policies,

Instructor: LTT Xun 10

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External environment influencing HRM

Technology:
Influencing training: at any time & any place
Sending and receiving information as well as locating and
gathering information
Changing in skill requirements, work roles and resulting in
redesigning work structure
New business model e-commerce

Instructor: LTT Xun 11

External environment influencing HRM

Customers
Who are customers?
Responsibility of HRM?

Governmental and related agencies

Departments of Labor Invalids and Social Affairs
Labor union, Woman union,

Instructor: LTT Xun 12

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Internal environment

Organizational culture
Influencing
Employee performance
Employee satisfaction
Organizational effectiveness
=> How are organizational culture formed and developed?
Mission Vision and Strategy
Forming human resource policies

Instructor: LTT Xun 13

Internal environment

Stakeholders management
Who are stakeholders?
Roles of stakeholders
management in HRM?

Instructor: LTT Xun 14

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Internal environment

Stakeholders management
Who are stakeholders?
Roles of stakeholders management in HRM?

Shareholders Board of Management Labor Union

Employees

Instructor: LTT Xun 15

DISCUSSION QUESTION

Select an interesting industry and explain how business

environment affects HRM in selected industry.

Instructor: LTT Xun