Human resource management is the process of planning, organizing, operating and controlling activities related to the human resources of an enterprise, in order to achieve strategic goals and improve operational efficiency. Factors affecting human resource management can be divided into two main groups: external environmental factors and internal environmental factors.
FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT
External environment
External environmental factors are factors that do not depend on the will of the enterprise, to which the enterprise must adapt and respond. These factors include:
- Economics: affects market demand, business opportunities, production costs, workers’ income, and competition among businesses.
- Population/labor force: affects the supply and demand for human resources, especially highly qualified and skilled human resources.
- Law – politics: affects regulations, policies, and workers’ rights, as well as the stability and security of society.
- Socio-cultural: affects the attitudes, values, behaviors, and expectations of employees, as well as the diversity and interaction of cultural groups within the enterprise.
- Scientific and technological progress: affects innovation, improvement, and enhancement of productivity, quality, and efficiency of production and business activities, as well as requirements for training and human resource development.
- Customers: influence customer satisfaction, loyalty, and response to a company’s products and services, as well as changes in customer needs and wants.
Internal environment
Internal environmental factors are factors that depend on the will of the business, which the business can control and adjust to. These factors include:
- Business objectives: influence the direction, strategy, and planning of the business, as well as the alignment and coordination of the business’s departments.
- Corporate policy: affects the principles, rules, and procedures of the enterprise, as well as the consistency and transparency of management activities.
- Leadership team: affects the decision-making, assignment, operation, and supervision of the enterprise, as well as the communication, interaction, and motivation of managers at all levels.
- Organizational structure: affects the division, decentralization, and connection of departments, functions, and positions in the enterprise, as well as the flexibility, efficiency, and rationality of management activities.
- Corporate culture: affects employee engagement, consensus, and commitment, as well as the creativity, learning, and development of the business.
Other factors
In addition, there are two other factors that also affect human resource management:
- Human factors: are the personal characteristics of employees, including abilities, skills, knowledge, attitudes, needs, desires, and behaviors. This factor affects the selection, use, training, evaluation, and reward and punishment of employees.
- Managerial factors: are the personal characteristics of a manager, including qualifications, experience, style, and thinking. This factor affects the manager’s planning, organizing, operating, and controlling.
These factors affecting human resource management can interact with each other and change over time, creating a complex environment for human resource management. To be successful, human resource managers need to ensure that they meet these factors effectively and efficiently.
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