Internal Factors consist of JOB ANALYSIS – It is a basic exercise of HRM which provides the necessary inputs for both Job Description & Job Specification. Job description consists of information related to jobs ( job characteristics, location, physical setting, hazards & discomforts of a job, responsibility related, materials, tools & equipments required, nature of operation etc). Job specification specification focuses on the information related to the employee who will perform that job ( personal attributes like – experience, training, physical strength, mental capabilities , education required for efficient performance of the job etc ). MGT POLICIES – Policies related to vision, mission, goals & objectives. Under management policies we can also discuss about production operation such as – what products are produced in terms of quantity & quality. To achieve that particular level, employees are required. .HR POLICIES – A policy is a pre determined established guideline towards the attainment of accepted goals & objectives. So HR policies are basic guidelines related to recruitment, selection, placement, induction, performance appraisal, remuneration & reward, training, labor relations, QWL etc. All these policies influence HR Planning. COMPANY STRATEGIES – Different companies follow different strategies such as expansion, diversification etc & on these basis HRP will be designed. COMPETITIVE STRATEGIES – Cost leadership, differentiation, focus etc. are competitive strategies which influence HRP External factors are also known as Environmental factors which are beyond direct control of any organization. So environmental feed back plays very important role in strategy formulation & implementation. Those who are always active towards environmental changes appoint knowledgeable employees, who help to collect accurate information & prepare strategy. POLITICAL FACTORS – Political & legal factors such as GOVT. rules & regulations influence HRP. For example – policies related to industrial relation, quota & reservation system, different Acts related to factory, mines, disputes, compensation, etc. ECONOMIC FACTORS – The country which is economically developed have high employment rate, high standard of living & low poverty. It basically focuses on selection of HRs qualitatively & takes steps for training & developmental needs of employees. SOCIAL FACTORS – Rapid changes in social conditions influence HRP. For example – nuclear family, employment of women, elementary education, community development programs & other welfare activities etc. similarly there is rapid change in our traditions , false beliefs & old thoughts which influence HRP. TECHNOLOGICAL FACTORS – Due to globalization MNCs can easily operate in every country. MNCs bring developed technology. Technology determines the HRs required in the organization. To run large scale industries heavy machineries are required & to run those efficient HRs are required.

1. Internal Factors
External Factors

2. INTERNAL FACTOS INFLUENCING
HRP
 JOB ANALYSIS – It is a basic exercise of HRM which provides the
necessary inputs for both Job Description & Job Specification. Job
description consists of information related to jobs ( job
characteristics, location, physical setting, hazards & discomforts of a
job, responsibility related, materials, tools & equipments required,
nature of operation etc). Job specification specification focuses on the
information related to the employee who will perform that job (
personal attributes like – experience, training, physical strength,
mental capabilities , education required for efficient performance of
the job etc ).
 MGT POLICIES – Policies related to vision, mission, goals & objectives.
Under management policies we can also discuss about production
operation such as – what products are produced in terms of quantity &
quality. To achieve that particular level, employees are required.
 .

3.  HR POLICIES – A policy is a pre determined established
guideline towards the attainment of accepted goals &
objectives. So HR policies are basic guidelines related to
recruitment, selection, placement, induction, performance
appraisal, remuneration & reward, training, labor relations,
QWL etc. All these policies influence HR Planning.
 COMPANY STRATEGIES – Different companies follow
different strategies such as expansion, diversification etc &
on these basis HRP will be designed.
 COMPETITIVE STRATEGIES – Cost leadership,
differentiation, focus etc. are competitive strategies which
influence HRP

4. EXTERNAL FACTORS INFLUENCING
HRP (PEST)
External factors are also known as Environmental factors
which are beyond direct control of any organization. So
environmental feed back plays very important role in strategy
formulation & implementation. Those who are always active
towards environmental changes appoint knowledgeable
employees, who help to collect accurate information & prepare
strategy.
 POLITICAL FACTORS – Political & legal factors such as GOVT.
rules & regulations influence HRP. For example – policies related
to industrial relation, quota & reservation system, different Acts
related to factory, mines, disputes, compensation, etc.
 ECONOMIC FACTORS – The country which is economically
developed have high employment rate, high standard of living &
low poverty. It basically focuses on selection of HRs qualitatively
& takes steps for training & developmental needs of employees.

5. SOCIAL FACTORS – Rapid changes in social conditions
influence HRP. For example – nuclear family, employment
of women, elementary education, community development
programs & other welfare activities etc. similarly there is
rapid change in our traditions , false beliefs & old thoughts
which influence HRP.
TECHNOLOGICAL FACTORS – Due to globalization MNCs
can easily operate in every country. MNCs bring developed
technology. Technology determines the HRs required in
the organization. To run large scale industries heavy
machineries are required & to run those efficient HRs are
required.