ENVIRONMENTAL INFLUENCES ON HRM
Internal Environmental Influences
• ORGANIZATIONAL CULTURE: core values, beliefs, and assumptions that are widely shared by members of an org Serves variety of purposes:
- communicating what org “believes in” and “stands for”
- providing employees with sense of direction and expected behaviour (norms)
- shaping employees’ attitudes about themselves, org, and their roles
- creating sense of identity, orderliness, and consistency
- promoting employee loyalty and commitment
- often conveyed through org’s mission statement as well as through stories, myths, symbols, and ceremonies
• ORGANIZATIONAL CLIMATE: existing atmosphere that exists in an org and impact on employees
- orgs have personalities like ppl, can be friendly/unfriendly, open/secretive
- major factor influencing climate is management leadership style, HR policies and practices, style of org communication
- type of climate is reflected in lvl of empl motivation, job satisfaction
- HR dept staff play key role to maintain positive org climate
• BUREAUCRATIC CULTURE: pyramid-shaped org, hierarchical structure and many levels of mgmt
- emphasize cross-functional teams
- improved communication flow
• EMPOWERMENT: provide workers with skills and authority to make decisions traditionally made by managers
- becoming more common
- work is getting more organized around teams and processes rather than specialized functions
• BOUNDARYLESS ORGANIZATION STRUCTURE: relationships formed with customers, suppliers, and/or competitors (typically joint ventures) for mutual benefit or encourage co-operation
External Environmental Influences
→ LABOUR MARKET ISSUES
LABOUR MARKET ISSUES
- Labour market is geographic area where: o Orgs recruit employees o Individuals seek employment
1) ECONOMIC CONDITIONS
• LABOUR FORCE: individuals who are employed and those actively seeking work
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