Critically Discuss Two Key Environmental Forces That Have an Impact on Hr Functions and Suggest How Hr Managers Can Respond in an Effective Manner.

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(1.0). Introduction

Organizations are managed and staffed by human. With out people organizations cannot exist. Among all other resources inside the organization the ‘Human Resource’ falls in to the most dynamic category as well to the most vital category.

So, Human Resource Management has become one of the most discussed approaches to the practice and analysis of the employment relationship in world market economies. Whether the perspective is supportive or critical, the idea that a reformulated relationship between management and employees is occurring has taken hold to a considerable degree. There’s no doubt that the world as we know it is rapidly changing. As part of an organization then, HRM must be prepared to deal with the effects of the changing world of work. The manner in which organizations conduct their HR activities will help create and sustain a competitive advantage. The contemporary trends and challenges in the business environment necessitate that even greater attention be given to the human resources of an organization.

This essay will mainly adopt main two key variables in the environment such as, advancements in Technology and the Competition and will examine what impact those changes will have on the HR function in organizations & provide implications to HR managers to respond in an effective manner.

(2.0). Key Environmental Forces

Today’s business environment is changing day by day. So, the environment where we have to do business is very uncertain. Nothing is permanent, and the cause of yesterday's success may be the cause of tomorrow's failure.

Because of this, the HR management’s strategic emphasis requires a focus on the key environmental variables. The latest technology, the trends and cultural changes which arising out of the globalization, the competition etc…

The changes the business environment has major consequences for people managers. It means the factor changing outside of the organization’s control have a greater affect the requirements for human resources and the way they are managed.

(3.0) Technology

We refer to any equipment, tools or operating methods that are designed to make work more efficient as technology.

As the pace of technological change has quickened, so firms have had to rethink their technology investment strategies and their human resource management practices to face these changers in an affective manner.

(3.1) How Technology affect on HR?

“The rate of technological change is now greater than it has ever been. No employee or organization can escape its whirlwind impact.” (Stone, 2002, p.330)

“More organizations are now evaluating their human resources and labour costs in the context of available technologies, based on the theory that products and services can be delivered more effectively & efficiently through an optimal combination of people, software and equipment. Today, with the assistance of HR, more companies are evaluating the role of organizational structure, technology, and human resources with the goal of providing more and higher quality products and services to the customer at a lower price.” (Bernardin, 2003, P.9)

Modern world organizations require more brain power or mental work rather than the physical power. This begins with the advancements of the technology. After the computer invented to the organizations all the internal procedures was changed. Not only had the computers, multi purpose machineries also contributed to this vast revolution with in the organizations.

With this vast revolution in the technology crates a demand for a different labour market. The skills and the knowledge need by the employees for the sustainability of the organization among the other competitors will be different. Mostly employees need the latest skills, knowledge and the ability to move with this rapidly changing technological...
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