The document discusses the dynamic human resource management environment and identifies external factors that affect HR. It explains that HR tasks can be performed by human resource managers, outsourcing, shared service centers, professional employer organizations, or line managers. The key external factors include the labor market, society, unions, shareholders, competition, customers, technology, the economy, unanticipated events, and legal considerations - all of which can influence an organization's HR policies and management.

1. DYNAMIC HUMAN RESOURCE
MANAGEMENT ENVIRONMENT

2. LESSON OBJECTIVES
• Identify the external environmental factors that affect human
resource management .
• Explain who performs human resource management tasks.

3. Human resource management environment
• External environment – factors outside an organization’s boundaries
that affect a company’s human resources make up.
• The organization has little control over how the external environment
affects the management of its human resources .

5. External environment factors
1. Labor market
• Comprise potential employees located within the geographic area
from which employees are recruited.
• The labor market is always changing and this can have an affect on
the company .

6. External environment factors
2. Society
• society may exert pressure on human resource management .
• The company needs to remain acceptable to the general public with
regards to human resource issues .

7. External environment factors
3. Unions
• Group of employees who have joined together for purpose of dealing
collectively with their employer .
• The union , rather than the individual employee negotiates an
agreement with management.

8. External environment factors
4.Shareholders
• Are owners of a corporation.
• Because they have invested money in firm ,they may at times be able
to influence a company’s human resource policies .

9. External environment factors
5. Competition
• Firms may face intense competition in both their product or service
and labor markets.
• Must maintain a supply of competent employees in order to succeed
,grow, and prosper .
• Can lead to bidding wars among companies .

10. External environment factors
6. Customers
• People who actually use firm’s goods and services .
• Company needs to ensure that it employs staff who are able to
provide top – quality goods and services .

11. External environment factors
7. Technology
• The rapid development of technology can either help or add
additional pressure for companies to keep up with it.

12. External environment factors
8. Economy
• The economy can have a major impact on human resources issues .
• When the economy is booming ,it is often more difficult to recruit
qualified workers.
• When there is a downturn, chances that more applicants will be
available.

13. External environment factors
9.Unanticipated events
• Occurrences in the external environment that could not be foreseen.
• Every disaster ,whether manmade or natural, requires a tremendous
amount of adjustment with regard to human resource management.

14. External environment factors
10. Legal considerations
• Each country has their own laws which can affect a company's human
resource issues.

15. Who performs HRM tasks?
5 parties:
1.Human resource managers
2.HR outsourcing
3.HR shared service centers
4. Professional employer organization (employee leasing )
5. Line managers

16. Who performs HRM tasks?
1. Human resource managers :
• Acts in advisory or staff capacity.
• Works with other managers to help them deal with human resource
matters.

17. Who performs HRM tasks?
2.HR outsourcing :
• Is the process of hiring an external provider to do the work that was
previously done internally.

18. Ways HR outsourcing is done
3.Ways :
a. Discrete services
b. Business process outsourcing
c. Recruitment process outsourcing

19. Ways HR outsourcing is done
a. Discrete services
• One element of business process or single set of high volume
repetitive functions is outsourced to a third party . For example
administration .

20. Ways HR outsourcing is done
b. Business process outsourcing
• Transfers the majority of the HR services to a third party.
• Example : kraft foods Inc .signed a multi – year agreement to
outsource HR business processes for 98,000 employees to IBM .

21. Ways HR outsourcing is done
c. Recruitment process outsourcing
• Organization uses an external service provider to perform all or part
of its recruitment activities.

22. Who performs HRM tasks?
3. HR shared service centers :
. Takes routine ,transaction based activities that are dispersed
throughout the organization and consolidates them in one location.

23. Who performs HRM tasks?
4. Professional employer organization (PEO)
. A company that leases employees to other businesses.

24. Who performs HRM tasks?
5. Line managers
• Individuals who are directly involved in accomplishing the primary
purpose of the organization.
• Can be involved with performing some human resource duties like
the selection process.

25. Thank you