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Human Resource Management

Notes Whatever the company choose to do, will definitely affect how the human resource
management will perform.
4. Technological Developments: Technological developments will greatly affect how human
resource management departments conduct their business. Instead of having to bring staff in
for physical meetings, they can now do video-calling, send emails or even SMS text messages.

The external environment consists of those factors which affect an organisation's human
resources from outside the organisation. Each of these external factors separately or in
combination can influence the HR function of any organisation. The job of a HR manager is
to balance the demands and expectations of the external groups with the internal requirements
and achieve the assigned goals in an efficient and effective manner. Likewise, the internal
environment also affects the job of a HR manager. The functional areas, structural changes,
specific cultural issues peculiar to a unit, HR systems, corporate policies and a lot of other
factors influence the way the HR function is carried out. The HR manager has to work
closely with these constituent parts, understand the internal dynamics properly and devise
ways and means to survive and progress. In addition to these, the personnel man has to
grapple with the problem of workforce diversity. Let us examine these issues in detail.
Globalization

The world is shrinking in all major respects. People, goods, capital and information are moving
around the globe like never before with faster communication, transportation and financial
flow, the barriers between nations have disappeared and the world is becoming a borderless
market. In the 21st century, global companies seem to virtually dance all over the place. They
are not constrained by national borders. Most corporations cover lot of ground while trying to
exploit an opportunity in any part of the globe now. McDonald's sells hamburgers in China.
Coca Cola has over 80 percent of its sales outside of its home market. Nestle has 50 per cent,
Proctor and Gamble 65 per cent and Avon 60 per cent. They source and coordinate resources and
activities in the most suitable areas, to offer cost-effective products and services to customers all
over the globe.

Mergers & Acquisitions

Global corporations often use the mergers and acquisitions route for various purposes: (a) to
incorporate new technologies, (b) to enter new markets and gain market share, (c) to improve
their market standing and stay at the top. In recent times, such marriages between known and
unknown entities are taking place quite routinely. As a result, we have M&A activity picking up
in sectors like pharmaceuticals, health care, telecom, software, steel, aluminum, power, energy, etc.

Downsizing

Downsizing is a way of life in organizations today. It's proving to be an intercontinental nuisance.
Although intended to produce positive results, downsizing does more harm than good to
workforce. The aftermath of downsizing is a wounded workforce that is stressed, demotivated
and shattered beyond belief. Here is an opportunity for HR to play a key leadership role and
take a constructive approach before, during and after the downsizing initiative aimed at
improving sentiments and bring everything back to normalcy.

Impact of Technology

Technology, undoubtedly, has changed the way machines are positioned, tools are handled,
data being processed, products that are manufactured and services that are offered. How about

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