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Human Resource Management

Essay by   •  July 5, 2011  •  Essay  •  896 Words (4 Pages)  •  1,508 Views

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Firstly, for any organisation to be successful in today's economy, it should be able to recruit and select the right people, for the right job, at the right time for the right price, in other words, its acquisition function should be done carefully. This is so, if this is not carried out well, the organisation would not be able to manage its internal and external factors appropriately, which is discussed below.

The internal factors of a business comprises of the accessible resources within the organisation available to complete its goals. These resources includes technological, human, financial and physical. On the contrary, competition among businesses widely exists in today's marketplace hence, HR managers have to gear themselves to acquire these resources and use them in an effective and competent manner, bearing in mind these resources can be scarce if not dealt with accordingly. The internal factors are discussed below;

1. Organisational Structure- As a result of global competition and a rapidly changing business environment, organisational strategies and structure should become more flexible and integrated. Organisations, should be decentralized and able to make quick and good decisions, so as to survive in today's competitive changing economy.

2. Traditions & Past practices- Resistance to change is a pivotal factor to be considered in any change process. Resistance is any conduct that tries strongly to maintain the status quo. Hence, traditions and past practices are related factors that generate resistance to change in most organisations. This can be unsavoury in today's global environment, whereby change occurs constantly, and therefore organisations must work towards in removing such practices in order to adapt well.

3. Business Strategy- There is a cause and effect relationship between business strategy and human resource decisions. Most companies utilize a number of different competitive strategies, so as to gain an advantage in the market place. However, these strategies are more effective if they are coordinated systematically with the HRM practices. Therefore, companies can improve its environment by making efficient choices concerning the HR practices that will simultaneously support the strategy they are to choose.

In contrast, external environment influences on how an organisations manages their workforce and carries out its day to day operations. This is evident since external environment is uncontrollable and changes constantly occur when new condition arises. Conditions in this case would basically mean supply and demand, political, social and legal factors, culture and image, etc. The following are some major external forces that cannot be controlled by HR departments within an organisation. They are:

1. Supply and demand - companies may have demand for employing more skilled workers but if there is less supply of professional candidates in the market, HR departments should make use of their internal resources and provide training for those less skilled workers. Also, by providing training would mean that the organisation is

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