Human Resource manager cannot perform his job in a vacuum as a member of environment factors which affect the HRM. Environment in HRM refers the totality of all factors which influence both the organization and HRM sub-system (Fitzgerald, 2005).
Changing demand of employees
The information technological revolution and neck to heel marketing competition of most of the organization due to globalization demand that the existing employees adopt to the ever changing work situations and learn new skills and knowledge, etc., to cope up with the new changes.
Employees' organization
This organization constitutes one of the power blocks in many countries.
Customers
Organization depends upon customers for their survival and growth. Customers revolt against employees, if the services rendered are less qualitative. Hence HR manager has to take the customers' attitude towards employees in HRM, particularly on service Industries and enable the employees to maintain relations with customers.
Social Factors
Social environment consists of class structure, mobility, social roles, nature and development of social institutions, caste structure and occupational structure socially forward and backward sections, traditions, religion, culture and etc., these factors influence the HRM of an organization viz., its Human Resources.
The early part of the century saw a concern for improved efficiency through careful design of work. During the middle part of the century emphasis shifted to the availability of managerial personnel and employee productivity. Recently, they have a focus on renewed emphasis on productivity.
Organizational factors
The cultural values perspective has had an important role in drawing attention to the difficulties of 'one-best-way' models of IHRM. The underlying questions re: how can 'multicultural' organizations be managed, and to what extent are modifications necessary to parent-country culture in an MNC's operations abroad? Despite its contribution, it is difficult to discern quite why this particular, essentially 'idealist', approach to national difference has had such a pervasive impact.
Individual factors
Two things have changed over time that defines where we are today. First, the distinctions between HR strategy and competitive strategy have begun to blur. No longer are SHR scholars the only ones calling for a stronger focus on the people and processes inside the firm and how they are managed, but now strategy scholars realize that for their theories to be more complete and robust they must also focus on these 'micro-level' factors. As the value proposition of a firm rests more and more in its knowledge ...