The following essay is an effort to understand the notion that human resource functions cannot be performed in isolation. There is an intense need to identify the external and internal factors that influence the HRM functions and practices. The essay also identifies how successful companies like Nokia, Sony, Panasonic, Ikea, Commonwealth bank, have managed the impact of various internal and external factors to become leaders in their industry. Human resource management has achieved significant importance in recent years both in terms of theory and practice and corporations today cannot ignore the importance of managing human capital in order to achieve their goals and objectives.
Factors Influencing Human Resource Management Functions
In simple sense, Human Resource Management (now onwards referred as HRM) means managing people effectively in order to achieve the goals and objectives of any organizations, small or big. More sophistically, HRM involves all management decisions and practices that directly affect or influence the people, or human resources, who work for the organization. Corporations today have increased their attention towards managing human capital effectively. The reason behind this notion is that employees enable an organization to achieve its goals and that managing human capital is critical to an organization's success.
Managing human resources is the vital role of managers in all organizations, both private and public. The changing world order has forced organizations to take a hard look at the ways they manage their people to make them more effective and efficient. Research has shown time and again that Human Resource Management practices can make an important, practical difference in terms of three key organizational outcomes: productivity, quality of work life, and profit. The issues of managing human resources are the key roles that managers in every organization in the business world have to pay attention in order...