Human resource management (HRM) involves planning, organizing, directing, and controlling how an organization acquires, develops, and manages its human resources. HRM is affected by various external environmental factors outside an organization's control, including the labor market, society, unions, shareholders, competition, customers, technology, the economy, and legal considerations. The document discusses how these external factors can influence an organization's human resource policies and management. It also examines the parties responsible for performing HRM tasks, such as human resource managers, outsourcing, shared service centers, and line managers. Finally, it explores how cultural and technological environments can impact HRM practices.

1. The Dynamic Environment of Human Resource
Management
MIGUELA P. SOCIA, LPT
MAED Student

2. The Dynamic Human Resource Management Environment
•What is HRM?
•HRM- Human Resource Management?
Human Resource Management is the planning
,organizing, directing and controlling of the procurement,
development and separation of human resources to the end
that individual, organisational, and social objectives are
accomplished
-Edwin B. Flippo

3. The Dynamic Human Resource Management Environment

4. •External environment – factors outside an organization’s
boundariesthat 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 .
The Dynamic Human Resource Management Environment
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 .
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.

6. 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 .
The Dynamic Human Resource Management Environment
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 .
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 .

7. 7. Technology
• The rapid development of technology can either help or add
additional pressure for companies to keep up with it.
The Dynamic Human Resource Management Environment
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.
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.

8. 10. Legal considerations
• Each country has their own laws which can affect a company's human
resource issues.
The Dynamic Human Resource Management Environment
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

9. 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.
The Dynamic Human Resource Management Environment
2.HR outsourcing :
• Is the process of hiring an external provider to do the work that was
previously done internally
Ways HR outsourcing is done
3.Ways :
a. Discrete services
b. Business process outsourcing
c. Recruitment process outsourcing

10. HRM ENVIRONMENT PRACTICES
The Dynamic Human Resource Management Environment

11. GOALS OF HRM
The Dynamic Human Resource Management Environment

12. How Cultural Environment Affect the HRM Practices?
Understanding the Cultural Environment
CULTURE: the specific learned norms of society that reflect attitudes,
values, and beleifs that exist in a nation.
Attitude: thinking
Values: what do you hold important
Beliefs: accepts as true
Countries have different
Values
Morals
Customs
Political economic and legal system
The Dynamic Human Resource Management Environment

13. Understanding the Cultural Environment
Ascribed status vs. Acquired status
Performance orientation (competence vs. Seniority)
Family based orientation
Materialism and leisure
Assertiveness
Power Distance (autocratic vs. Cosultative
Individualism vs. Collectivism
Uncertainty avoidance
Fatalism
Hierarchy of Needs (Maslows Hierarcy of Needs)
The Dynamic Human Resource Management Environment

14. The Dynamic Human Resource Management Environment

15. How technological environment affects the HRM environment?
The Changing World of Technology
HRM information system help to
Facilitate HR plans
Make decisions faster
Clearly define jobs
Evaluate performance
Provide desirable, cost-effective benefits
Recruiting
Employee selection
Training and development
Ethics and employee rights
Motivating knowledge workers
Communications
Decentralized work sites
Skill levels
A legal concern
The Dynamic Human Resource Management Environment