The (HRM) role consist of number of activities and crucial among them is to decide ,what employee needs ,organisation has and wether to use staff from agencies or recruit employees and train the best one to fulfil organisation needs ,in a way that ensures that employees are performing their best and their practises conform, to the regulation of the organisations. compensation, records of employees and policies related to employees are some of HR'S very important activities. Normally these activities have to carried out by small organisations by themselves, because it is not possible for them to carry out this activities
The function of HRM and its profession has gone very imperative changes since early ages. Earlier the duty of HR used to be just that of paperwork, recruiting and paying the employees, while now it has to deal with overall facets to maximise the capability in manner which is most fulfilling manner. The function consists of important aspects such as training, staffing, motivating employees and handling employee grievances.
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External environment factors affecting organisations
EXTERNAL ENVIRONMENTAL FACTOR AFFECTING ORGANIZATION
ADMINISTRATION AND LEGAL ENVIRONMENT
An organization work's according to a administrative and legal environment of the country. In various countrys there is restrictive impact of environment on various aspect of the organization. In some countries these context is linnet. There for it is very important to understand of administration and legal environment as it will be easy to determine if there is any change in organization taking place. The administrative frame work in the which the organization is running gets it shape by distinctive blend of forces which r such as non governmental international , legislative , governmental policies and legal framework. These consist of all those loss and rules that backs or support the organizations development. http://eab.ege.edu.tr/pdf/9_1/C9-S1-M5.pdf
Some angels of administrative environment are necessary to analyze wether there are any res
If there are any restriction, which are constitutional: there should be an evaluation wether it is government or department or it is under local jurisdiction or the central one:
It is necessary to identify particular regulation, rules and the layout of the organization: it is very imperative identify if the organization have particular authorization or specific layout that has made obligatory.
If there is any legal obligation that prohibits the control of the organization: it helps a lot to understand any limitation that have been fixes around the person or who is supposed to lead the organization. These consist of identifying leading body of the organization and identifying how, the selection of member are made and further identifying who has the permission or authorization to set the objectives of the organization
Technological environment Both society and technology give us inner knowledge to understand t the institution. The institution that deals with foreign body's are fully dependent on the condition of the country wide infrastructure E.g. transport, water and power. Those organization which focuses on research practices, that are indigenous have fully distinctive dependency therefore, it is imperative e to know and understand the type of technology and its level in the light of institutional and whether these type of technology is based on the literacy of the computer or highly sophisticated communication , verbal and nonverbal.
At a common level,it is imperative to know the relation between plans of the governmental approach or development policy . various sides of the political aspect should be evaluated:
The measure at which the government supports organisation in terms of resources:Â It is imperative that other funding agencies know whether imperative government inputs are predicted to support and help increased , maintenance,staff increase or other frequent costs characteristic in projects involving research. The political side generally require resource and decision of trade-off at the government level.
The degree at which the system of politics is balanced to go through imperative changes :Â This factor is vital and its effect on the organisation should also be considered.
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Whether legal background of thee organisation has any political background has any direct relation:Â It is important for some organisation to have legal state,to get funds from outside. http://eab.ege.edu.tr/pdf/9_1/C9-S1-M5.pdf
In the economic environment, the organisation evaluation should focus on those sides of system that influences directly the project type selected. For example, organisational activities are directly influenced by various factors such as opportunity and laws of labour, and opportunity expenses for researchers in public organisation directly influences the activities of organisation. Countries that have restriction of foreign currency represent diverse situation for organisations than the countries not having them, as these type of confinement
have implications for examination, e.g. Procurement of equipment and its maintenance. This is very imperative to understand how the institution is giving support and gets affected by economic forces. http://eab.ege.edu.tr/pdf/9_1/C9-S1-M5.pdf
Cultural and social Environments
social and cultural forces at regional, national, local is influenced deeply and have influence on the working of organisation and how they value their effects and outcomes. .As for an instance , the most important aspect of an indigenous culture that have influence on working style of an indigenous culture is undoubtedly the element of language .The degree to which the members of organisation ,participates in the degree to which members of organisation can take part in the dialogue of main technical communication will help to find out the degree of the effort focussed in research . By knowing the local ,regional and national values Understanding the national/regional/local values ,it becomes easy to understand the research and its nature ,which is valued. For example, what is relative precedence being put on research in collaboration with clients that are local,for an instance testing of products /procedures with native populations, internationally opposing the share of information with study related colleagues , or giving data based on biostatistics, shaping the policy regionally and locally. To arrive at this important point needs decisions based on culture
Eventhough research based organisations are triggered by their mission of research and the procedure of attaining that.their survival is very much depended on various stake holder groups .This environment consist of people and institutions ,who are external to the concerned organisation but are concerned directly with the organisations . Suppliers ,sponsors,donors,clients and target group are some of the examples of stakeholders. It is very important to evaluate the identity these stakeholders,so as to understand their influence on the institution . Because of the dimension that is internationally interdependent,research of the contemporary one, depends on the relationship of institutions its international,which are also very imperative to understand . Thus relationship between universities ,department of governments and agencies, other institution of research,is very imperative to be understood f.
Impact from these forces either facilitates the organisation or constricts it in its mission.Moreover these forces are responsible for keeping organisations keep going or conversely ,it can become a barrier to its survival .
HR in relation to external environment factors
Technology is imperative factor of competetitive advantage for any industry or organisation (Garavan.et.al).These days the organisations are faced with a problem ,which is of changing technology,that shrinks the current product life cycle and demands for new skills ,which is leading organisations to think on reassessing their processes of production (power2004).Main reason behind this is that ,change in technologies ,goes on to create job changes and create requirement and demand for fresh skills and forces the company about the fact that who requires training and assesment (Milkovich yr 91 and Boudreu Watson and green yr 96 and Wong yr97).human resource pracises are greatly altered by these technological advancementsAlso the technological advancements alters the way Human resource practises are implemented . http://www.articlesbase.com/human-resources-articles/challenges-faced-by-human-resource-managers-in-the-era-of-gloablization-995167.html
National culture: increase in globalisation and internationalisation ,nowadays makes it more difficult for human resource ,as to which practise to be implemented that properly deals with the differences culture and nation (Alas.et.al).Important role in developing practises is linked with the national culture,as the hr practise should suit the culture of nation as well as internationally.Here the role of hr is very important as the cultural factors are different from country to country.
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Legislation and regulation: In any country, there is a huge and direct impact of government and legislation on hr practises .In many countries, the criteria is set by government,under which the hr practise should be created and work according to the rules set by the government .
Actions of competitors:Every organisation has distinctive set of practises which are nothing but distinctive set of rules and regulations.These practises are best suited for that particular organisation and differentiates the organisation in an unique way to its competitor.Therefore a comprehensive development of human resource is an inperative aspect of gaining sustainable competitive advantage
Conclusion of the first task: To conclude with i would say that hr practises as discussed above are some the basic and most imperative practises ,which are common ,but differs in frame and organisation to organisations and country to country.But these factors are very imperative for competitive advantage as employees performance is directly linked to the organisations success,in turn bringin the organisation long term competitive advantage
Competitive Advantage - Definition competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices
Definition taken from http://tutor2u.net/business/strategy/competitive_advantage.htm
Hr practices that helps organisation to gain sustainable competitive advantage
Human resource practises are very imperative. It is believed that a careful crafted hrm policy helps the organisation to gain sustainable competitive advantage for long time. Incorporating hrm practices to the top management helps the organisation to achieve its goals without any problems
HRM as a cause of Competitive Advantage
HRM practices are very helpfull and are often seen as a source of profitability,organisational objectives and quality of work and atmosphere in the organisation by providing a supportive hand overall operations of the organisation. It is believed that a that a vigilantly tailored strstrategy of human resources ,will inevitably come out to be a competitive advantage source in the market place .
The source for a company's competitive advantage is the human resource because:
1. It helps in providing appropriate type of talent and skill required for the companyprovides the appropriate type of skill to the company at the required time.It is the work of hr to make sure that right type of talent is provided at the required time
2. Hrm makes sure that the organisation has skillfull staff without any loopholes. When this is carried out properly ,the selection ,recruitment and staffing process ,gushes a stream of talented and skill individuals ,filling up the position at the required time .
3.The staffs are evaluated with the help of appraisal methods.Effective appraisals have a deep effect ,ascertaining the success of the company in future .
4. The company can put light on employees efforts towards expected organisational objectives,by using efficient pay systems. This makes sure that the staffs are skilled properly,so that it helps them to carry out their tasks effectively, which directly supports thee growth of organisation through personal development of their career .The most imperative objective of Human resource management is to develop programs ,that are cost effective and helps to enhance employee skills to carry out their task efficiently.
Adapted from the the site ivthesis .com(link below)
Â Effective Human Resources Management Strategies helping to gain sustainable competetitive advantage
Policies built on "People-Service-Profits" Any organisations greatest advantage are its employ. This type of strategy generally known as managerial conception ,which effeciently converts the philosophy into action ,which is also defined as people service profits .Â
1. Recruitment and Selection
recruitment is a process of HRM ,whose main work is to engage in the development,discovery,attracting and retaining the right type of employee,to fill the job vacancy that is engage in the , development,discovery, looking for, and attracting the appropriate people in aapropriate positions.Whereas the process analysing the information a receiving the correct information of the job applicants,so as to determine ,that who is fit and appropriate for hiring for short term and long term positions.On the other hand relating and coinciding individual to the avalaible positions,based on interests,competencies,individual personality and preferences is called placemnt. Placement and selection gives a similarity between the need of organisation for particular individuals qualifying for the positions and various needs of staffs determining the work type that satisfies them .
When all the activities are based on People-Service-Profit (PSP),which is taking care of the staffs ,then employee will deliver faultless service to the customers, which will in turn benefit the organisation with profit ,which imperative to gain and sustain competitive advantage the company with the necessary profit earning ability to reserve the competitive advantage.
2. Career Development/ Advancement
This is a type of organisational effort that puts light on enriching and developing the company's human resource management in relation to both ,the compny's needs and employees needs.A process in which an individual creates a plan to reach his/her goal.This type of development focuses on the careers of individual,keeping in mind the organisation ,on the other hand focuses on careers ,keeping in mind the individual empoyees.
Every workplace strives to give an environment that is supportive ,in which every employee can give their best and contribute efeciently to the success of the company.
idea adapted from http://www.idrc.ca/strategic_framework/ev-28364-201-1-DO_TOPIC.html
The success of a company with its staffs relations and employee retention ,is depended on a communication that is candid. A transparent Communication, in which employees are encouraged to participate and put their opinions on the points that are controversial ,makes the employees to feel themselves part of the organisation, therefore giving their best and contributing to the organisations success
idea adapted from http://www.idrc.ca/strategic_framework/ev-28364-201-1-DO_TOPIC.html
5. Employee Motivation
Motivated employees puts more effort leading to greater productivity, creativity and employee highly appreciable effort, which is directly related to improved performance of the companyÂ
idea adapted fromhttp://www.idrc.ca/strategic_framework/ev-28364-201-1-DO_TOPIC.html
6. Employee Training
Any successfull company gives a due weightage to its training aspect as it is one of the crucial factor for their success .Any company which is successful holds training as a very imperative factor ,as skillfull employees are directly related to the comanyt's success.It is an universal truth that 100% satisfaction of ustomer can be achieved through dedicated work force . Any successful organisation has important pillars as rules of treatment with colleagues ,which are such as giving employees liberty to do their work,equipments to work with that makes the task easy and respect and dignity are very important in any organisation .Also providing employees with treating people with dignity and respect is very important in any organisation. Effective training plays a very important role in holding highly efficient workforce ,which in turn gives excellent value to the shareholders and superior service to the customers ,making a company to have a sustainable competitive advantage over their competitors
idea adapted from. http://www.idrc.ca/strategic_framework/ev-28364-201-1-DO_TOPIC.html
PRODUCT MARKET COMPETITION AND COLLECTIVE BARGAINING
Collective bargaining on compensation has every time been highly influenced by the attribute of the product marketplace in which it is occuring. The labour marketplace is imperative as far as the bargaining power of labour is concerned and once it is organised, it is highly influenced by supply and demand . For a specific occupation in which the current labour marketplace , a hike in demand of that occupation will keep on increasing in relation to its bargaining power. The product marketplace has a distinctive sort of impact. In a market which is perfectly competitive , there is supposedly not anything to bargain ; if a union is to compel an employer to compensate over the marketplace wage levels then, if not ,there were output gains unavailable to rivals,then that company would have gone out of the business. Product marketplaces are, though, seldom perfectly competitive.
Companies , to a larger or smaller extent, might have some extent of monopoly control by high merit of transport overheads, brand identities, consumer faithfulness, copyright, or whatsoever. In these conditions companies in a place to make supra-ordinary profits '. Unions are normally expected to aim segment and firms that have comparatively high gains. By arranging the workforce in companies facing comparatively less competition, unions try to find to win a part of gains.
Such a part might , for instance , be in the shape of improved pay or extra control on work force level or the work conduct. Stronger rivalry in the product market place creates a fundamental confront to collective bargaining of compensation. This usually arises as Retailers functioning in a given marketplace get entrance to manufacturers able to produce a specific good/ service at lesser labour price, functioning in labour marketplace afar the Organising arrive at the trade union, otherwise the companies themselves may reposition to such labour marketplace. Without share to bargain , or without the companys capacityto compel the employer to grant a share, it is resented the major economic baseof collective bargaining (Brown, 2008).
How much far does the shifting attribute of product marketplace rivalry in England explain the fall down of collective bargaining that is described? WERS (Workplace employment relation survey) survey sever since 1984 have requested companies in the private sector a range of questions about Competitive situations. One part was ,if the rivalry for their chief product/ service was mainly local, provincial, international or national. This is a query of clear significance for the reason that of the inevitable geographical restriction on trade union, and also for the reason that of the previously local genesis and reliability of companies' associations. different studies explains that the likelihood of using collective bargaining was approximately 11 to 12 per cent more among owners facing home rivalry than it was among comparable owners exposed to
additional extensive competition.
Work areas in non-local goods marketplace are thus notably less probable to have collective bargaining than of those in domestic marketplaces. This reveal, that co-operation (or complicity) among owners in the organization of worker is more possible when in a domestic competition with one another. This normally happens when transport overheads are more as a percentage of value attached, or when service is offered direct to the customers (Commons, 1964). However this protection for collective bargaining has been corroding. Investigation for various years showed that the effect had lessened from 15 % in 1984 to 8 % in 2004. The domestic product marketplace stays a substantial and statistically important back up for collective bargaining, but the backup it provides is deteriorating.
Competition from overseas has given a confront to consecutive British companies
over many years - , ship-building, textiles steel making, footwear, are some of the big sectors which has almost washed away. During after-War years of union prosperity, the industries which were controlled by unions have mostly diminished with their collective bargaining organisations intact, if finally unproductive. The violation of international rivalry on local product marketplaces has gone up during the 25 year era. It is, perhaps astonishing that the percentage of private sector work areas surveyed by WERS that reported that their market rivalry derived from global sources was almost steady - 19 % in 1984 and 15 % in 2004. In addition, there was no proof that global rivalry was more damaging the prevalence of collective bargaining than either provincial or nationwide rivalry.
The description may be that companies and industry segments with previous exposure to stricter rivalry from abroad were better adjusted to the ever-tougher competitive situation of the 1980s and after that. Whether or may be not they had held back collective bargaining, they still had fewer alteration to make. This obvious paradox may also go up as competitive stress can take the shape of higher exposure of local firms to nationwide and worldwide capital marketplaces, rather than goods marketplace. Possession ship is more and more divorced from the area or country.
Firm ownership has more and more gone into hands of shareholders of institutions ,like insurance companies and pension funds, or of overseas shareholders with no specific national commitment. This type of owners may be expected to be demanding rather than the domestic eglish shareholders who had dominated possesionship thirty / forty years prior. Anecdotally ,all this has put mounting pressure on domestic managers to give bigger Return rate.
Another pointer of the rival constrain under which companies runned during the
era from 1984 - 2004, anywhere they were situated geographically, were the number of rivals they perceived about themselves to have. Surveys put forward that collective bargaining was more expected in those companies that asserted,that they 'dominated' the marketplace than those who where reported up to 5 rivals, and which again was more than where there were more than six rivals. This is fully constant with the basic story about the domination of product marketplace competition. In addition, the pattern of fall down in the use of collective bargaining compensation also mirrored these different extent of rivalry.
Collective bargaining area of coverage is evidently more widely spread in workareas with higher gains. Surveys and research explains that this outcome is broadly obvious throughout the phase. This Sustains the observation that owners are less unwilling to unions where they have to share the profits . In addition, the studies shows, as coverage of compensation collective bargaining Diminished over the time eventhough gains were at higher or at lower levels, the Downfall was less distinct for the highest quartile. While on the downfall roughly all over, collective bargaining prevailed a grip more in thosefirms in sectors where gains were highest.
Idea adapted from http://www.niesr.ac.uk/pdf/210808_110817.pdf pg 14- 18
Its a distinctive experience of companies whose profitability destiny changed which is of specific interest. equally both saw compensation collective bargaining diminish. however those whose relative gain margin enhanced, from staying below the average in 1984 to the above the average in 2004, saw less of a diminishing than whose relative gain margin diminished. The earlier, "nouveau riche" sectors - which consisted of legal and retail retail,advertising and technical services saw a division in the area of collective bargaining coverage between 1984 - 2004. On the other hand those experiencing a comparative gain compressed over the time - which included hotels and restaurant. electrical equipment manufacturers - saw bargaining coverage diminish five times more. While the revitalization in gain in an industry is obviously not sufficient to revitalize bargaining coverage area, gain fall down does emerge to be linked with somewhat near to the crumple of compensation collective bargaining. This all confirms the close link between collective bargaining and the destiny of product markets competition in which it is performed. Over the century, compensation collective bargaining a has fallen quickest in those work areas that were , relative to each other, . Their workpareas confronted more geographically domestic rivalry. They confronted more rivals.. The collective bargaining growth in the 20th century age had been fostered by competition which is imperfect. contracting product market rivalry has choked it.
Idea adapted from http://www.niesr.ac.uk/pdf/210808_110817.pdf pg 14- 18
compensation Collective bargaining stayed best in companies and industries that ha ve sustained the highest rate of gain over the time. They included, for example,wholesale trading, financial intermediation, and food and drink manufacturers .The industries which had constantly low gain - included, for instance, non-electrical equipment manufacturers, construction companies - saw their area of bargaining coverage diminishing, but at an average rate.
Idea adapted from http://www.niesr.ac.uk/pdf/210808_110817.pdf pg 14- 18