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List the stages of evolution in human resource management. Enumerate the environmental influences on human resource management. Differentiate between the kinds of HR environment perspectives. Understand the environmental scanning process.
Each era in the history of HRM demonstrates the thinking and attitude of the employers and their workforce at that point of time.
Labour welfare laws, labour market conditions, labour awareness, strength of the unions and the employers attitude towards the employees and their union have collectively shaped the HR environment of firms in different eras in history.
Political environment factors Nature of political organization and system Political stability Prevailing political ideologies
Legal environment factors Economic environment factors Labour market Globalization Competitors Trade unions Customers Shareholders
The vision and mission of the organization Business strategy Organizational culture Organizational structure HR system
Objective environment perspective As per this perspective, the environment is real but functions independently of the firm. As such, the results of analysis of the environment can form the basis for developing or revising the objectives and strategies of a firm.
Perceived environment perspective As per this perspective, an environment is real and material. However, the difference between the reality of the environment and the perception of such a reality by the analyst might lead to the designing of flawed strategies.
To achieve a good fit between the strategies and the environment, firms should control and then eliminate the factors that cause an imprecise assessment of the environment.
Enacted environment perspective As per this perspective, the environment is not real or concrete but a creation of the participants of the environment.
Source: Zita Correia and T. D. Wilson Scanning the Business Environment for Information: A Grounded Theory Approach, Information Research, 2, No. 4 (1997) available at http://informationr.net/ir/2-4/paper21.html
Perceived environmental change Managers perceptions of changes in the environment and their likely effects on the firm significantly influence the strategy formulation process.
Strategic change In this stage, organizations make required changes in their HR strategies based on those in the environment.
An organization may change its employees training programmes, compensation packages, safety measures and recruitment practices as part of its response to a changing environment.