Chapter 2

Environment of
Human Resource
Management

Human Resource Management, 5E 1

 Systems Approach
System
Sub-system
Interaction between the subsystems

Human Resource Management, 5E 2

 Financial
Subsystem

R&D HRM Marketing

Subsystem Subsystem Subsystem

Production
Subsystem

Human Resource Management, 5E 3

HRM and its Environment

Cultural

g i
ca olo

U
n

ni
ch

on
Te

s
Leadership
Economic

Strategy,
External

Internal
Task &
HRM

Co an ltu atio
nf d re
Po Leg

Cu is
n gan
lit al

ts
ic

r
al

lic
-

Profession
al Bodies

Human Resource Management, 5E 4

 External Forces Internal
Forces
Political-Legal Strategy, Task and
– Legislature
– Executive Leadership
– Judiciary Unions
Economic
– Suppliers
Organisational
– Competitors Culture and Conflict
– Customers Professional Bodies
– Economic Growth
– Industrial Labour
– Diversity
– Globalisation
Technological
Cultural
Human Resource Management, 5E 5
 Scanning the Environment
Enacted Environment
Domain and Domain Consensus
Task Environment
HR Department to play major role in
Scanning Environment

Human Resource Management, 5E 6

 Reality Check
Looking at the HRM and its Environment
figure, do you think that the figure reflects
all environmental factors? Any factor been
left out (out of those included) is non-
contextual? Comment.

Human Resource Management, 5E 7

Thank You

Best Wishes…

Human Resource Management, 5E 8