Innovative Environment of Human Resource Management
In simple words, environment comprises all those forces which have their bearing on the functioning of various activities including human resource activities. Environment scanning helps HR manager become proactive to the environment which is characterized by change and intense competition. Human resource management is performed in two types of environments – internal and innovative; here describe Innovative Environment of Human Resource Management.
The innovative environment includes forces like economic, political, technological, demographics etc. these exert considerable influence on HRM. Each of these innovative forces is examined here.
Economic: Economic forces include growth rate and strategy, industrial production, national and per capita incomes, money and capital markets, competitions, industrial labor, and globalization. All these forces have a significant influence on wage and salary levels. Growing unemployment and reservation in employment also affect the choice for recruitment and selection of employees in organizations.
Political: Political environment covers the impact of political institutions on HRM practices. For example, the democratic political system increases the expectations of workers for their wellbeing. The total political environment is composed of three institutions:
- Legislature: This is called Parliament at the central level and Assembly at the state level. A plethora of labor laws are enacted by the legislature to regulate working conditions and employment relations.
- Executive: It is the Government that implements the law. In other words, the legislature decides and the executive acts.
- Judiciary: This is like a watchdog above two. It ensures that both the legislature and the executive work within the confines of the constitution and also in the overall interest of the people. These affect, in one way or the other, all HR activities from planning to placement to training to retention and maintenance.
Technological: Technology is a systematic application of organized knowledge to practical tasks. Technological advances affect the HR functions in more than one way:
- First; technology makes the job more intellectual or upgraded.
- Second, it renders workers dislocated if they do not equip themselves to the job. Third, the job becomes challenging for the employees who cope with the requirements of technology.
- Fourth, technology reduces human interaction at the workplace.
Finally, job-holders become highly professionalized and knowledgeable in the job they perform.
Demographic: Demographic variables include sex, age, literacy, mobility, etc. Modem workforce is characterized by literate, women and scheduled caste and scheduled tides workers. Now, workers are called knowledge workers’ and the organizations wherein they work are called “knowledge organizations”.