Relationship Between The Organization Its Environment Business Essay


Human resource management is the management of an organizations human resources or workforce, which is responsible for the selection, attraction, assessment, training, and rewarding of the employees while also over viewing the organizational culture and the leadership with the assurance of labour law complying with employment standards. Human resource are the individual who make up the organizational workforce of business sector or the economy at large as the knowledge of an individual contributes a lot to the organization. As humans are the most valuable resource in any organization and they should be given jobs according to their resourcefulness, they should also be trained for their organizational wok and the organizational behaviour with rewards for their task performed. There are numerous factors affecting the human resource system but the most important ones are the environmental factors (external and internal), political factors and the availability of the economical resources.

Planning is another important role any organization plays. This include the real time planning, which is the daily planning of the business operation and the strategic planning, which are the future goals of the organization. . Armstrong and long (1994) state that "strategic management means that managers are looking ahead at what they need to achieve in the middle or relevant distant future"(P.16).The common definition of the SHRM is concerned with the planning of how to use the available human resource to meet organization desired future goals weather it is monetary or acknowledgement. SHRM also focus on how to meet these future goals.

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Strategy has three fundamental characteristics. First, is forward looking which is It is about deciding how to reach the desired goals which is concerned with both ends and means. In this strategy is a declaration of intent as what we want to do and how we intend to perform the particular task. They guide action to achieve result focused.

Second characteristic for strategy planning is the organizational capability of the firm which is the capacity to be able to function effectively to deliver potential results that is depending on the availability of resource quality and quality.

The last is achieving congruence from the organization's business strategies within the context of its external environment and internal environment by focusing upon the organization, competitions, local and international market around it. To be able to maximize firm's competitive advantage it must be able to match its resources and capabilities available in its environment.

Armstrong and long state that the "strategic management is a realistic view, is not only realized by formal statements but also comes about by actions and reactions" (Strategic Human Resource Management p.29)

The Michigan model of HRM was developed by Devanna, Fombrum and tichy (1984) which is harder and has a less humanistic which states that employees are resources (asset) as other business resource. This also states that they should be hired as cheap as possible with the sparingly use and development for possible exploitation.

The theorist also highlighted the most important expect of the human resource issues which are the selection of suitable people to meet the business demand, the allocation of the business objective, also to provide the employees with the suitable reward for their performance and also to train and develop the workers to meet the future requirement of organizational goals.

Below is the sample of the Michigan model. Figure:1


Selections are done in many forms which include interviews which are character based and formal, the presentation of the interviewees that are the dressing and presentation, and test's which could be of plenty kind to know that the selected candidate can perform to their best.

Rewarding of staff depends on their performance. If staffs are punctual to their work and complete the given task, they are to be rewarded for their performance.

Appraisal is given to employee based on their performance. This are in forms of higher position, better packages and also sometimes given in monetary forms.

The important features of the model are that it is focused on the organization and the individual's performance while keeping in mind the organizational structure.

The unfortunate side of human resources planning is dealing with difficult and problematic employees. All managers have to face challenges during the human resource planning, some are as follows:

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Changing Management

New management may require new staff. This is mostly for personal management staff as new manager may require new skill and most sometimes this problem is solved by training old staff.

Leadership Development

Human resource professionals are expected to provide essential structures, tool's, processes and view point to make best selection and develop future leaders of the organization.

Effectiveness Measurement

To measure the improvements, right tools are needed which are results in transaction, as well influence on business. All the managers need to measure the effectiveness of employees as this would be beneficial in decision of the appraisal of its members. This is to know which member of the organization is progressing and who is not coping up with their work.


Compensation as a key issues which involve the retirement benefits and outsourcing cost which can be expensive and the invention for human capital management with global attracts and retrains key employees who tend to become the increasingly important asset for the organization.

Managing Diversity

This is to meet the demand of the technological changes in concern to the management needs and wants of any organization. This factor keeps the Hr team in work all the time as new technology brings change to the organizations social life.

 Organizational Effectiveness

This being expert in the all the organizational work is executed and organized, that is to deliver administrative efficiency for the assurance ensure that production costs may be reduced while quality with the quality are maintained. These are the major challenge in the inexperienced or less developed managers.

Stages in the management process of planning follows:

Goal setting

Plans are means of establishment of organizational objectives of any organization which is the first step in planning process. Setting objectives are most critical part of planning as the key organizational objectives are to be met. This should be specific and in measurable teams which would be able to fulfil the beliefs, mission and goals with the available resources.

These objectives should be specific, informative and also clear to the point. Major objectives of the organization may be broken into individual, departmental and sectional objectives. Managers should also be aware that what would be the problems and opportunities that the organization may be facing in the future.

Developing the planning location

Assumptions and circumstances underlying the needs of development must be openly clear as can be known through accurate planning of possible future events. Assessment of environment helps to reveal opportunities and constraints. Analyses of controllable and uncontrollable forces are essential for the process of sound and conditional plans for alternate circumstances.

Reviewing Limitations

Limitations mostly affect the organization which tries to meet their objectives. Limitations restrict smooth operations of planning and these must be anticipated.

key Imitations areas are finance for the organization, human resourcing, the availability of materials, the availability of machinery. Strong and also some of the week points if the organization should be correctly and deeply assessed.

Deciding the planning period

Once the above are listed down, the next steps are to decide the period of evaluation which is also known as the principle of commitment which should be longer enough to meet all the requirements of the organizational mission and goals. This depend on the time period, the future needs of the organization, the availability of resources as in form of raw materials for production, and the time of development of technology.

Formulation of management strategies and policies

The responsibility of policies and strategies are usually with the organizational management, but subordinates must be consulted as they implement them. Substitute plans should also be developed and also evaluated carefully to select the best policy for the organization. This shows that not only one alternative is good, and various alternatives could also be considered.

Preparing operating plans

These plans consist of budgets schedules, programmers, procedures and rules which are required for the implementation of other basic plans which are useful in the implementation of future plans. Supporting plans, timing and sequence list of activities are also to determined assurance of continuity of operations.

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Integration of plans

All plans of the organization should be equally balanced so they could support each other and the execution process may not take longer period of time. The review and revision of all plans are necessary before they are practiced as operation. Moreover, plans must be explained to those responsible for practice with continuous evaluation and also appraisal of plans.