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1. How does HRM affect all managers?

A major HRM challenge for managers is ensuring that their company has a high-quality workforce. Getting and keeping competent and talented employees is critical to the success of every organization, whether an organization is just starting or has been in business for years. If an organization doesn’t take its HRM responsibilities seriously, performance may suffer. Therefore, part of every manager’s job when organizing is human resource management. All managers engage in some HRM activities such as interviewing job candidates, orienting new employees, and evaluating their employees’ work performance, even if there is a separate HRM department.

2. Discuss the external environmental factors that most directly affect the HRM process.

There are many factors that would affect human resource management.

However some of them are considered to be:

• Political climate
• Economic climate
• Company strategies
• Technological developments

Political Climate

The political climate can have a great effect on any business and subsequent business departments such as human resource management. If the government decides on spending cuts or increasing taxes on businesses then this will dramatically affect the running of the business. Department budgets may have to be trimmed or the department may even have to be completely scrapped.

Economic Climate

The economic climate can be closely associated with the political climate. However, it also includes how the banks are coping and if they are willing to lend to businesses. Again if the banks are cautious and so do not lend and in fact try and get their money back quicker, it can spell disaster for a business. This in turn, will mean big changes for how human resources in a company would be run.

Company Strategies

Companies will also have plans and strategies on how best to move forward. These will of course largely be determined by the two previous factors...
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