Hrm in Business Context

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A Report on Influences and Developments in the External Environment that have an impact on HR policies and practices,using the framework of STEEPLE

By Amartya Basu(Registration No-201283862).

Date:2/12/2012

Submitted in partial fulfilment of the requirement of the MSc Human Resource Management(Full-time) course.

Acknowledgement:

I would like to thank my teacher Mr. Chris Moore for his guidance and encouragement he has given me in writing this report.

Abstract:

This study is about the influences and developments of external environment, that generally have an impact on the HR policies and practices applied by the organisations/industries with special attention towards NHS Employers. The report provides a global view of external factors causing changes in HR and how the HR department of NHS Employers have tackled them by formulating different policies and applying appropriate practices.

Contents:

* Introduction 3

* Analysis of ‘STEEPLE’ from a global perspective 4

* HR practices of NHS Employers 7

* References

* Bibliography

Introduction:

To analyse the influence of external environment on the HR policies and practices of organisations/industries, there is need to understand what external environment is and analyse how different factors of ‘STEEPLE’ framework influences the HR professionals to change their policies and adapt to new practices. After that, it will be analysed how these factors affect the HR policies and practices and how HR professionals develop new HR policies to cope up with the implications of external environment.

‘Organisational activities and outcomes are accounted for by the context in which the organisation is embedded’(Pfeffer and Salancik, 1978, as cited in Farnham, 2010, p. 19). This means that the activities and outcomes of any organisation takes place in the environment where the organisation is rooted, which is known as the external environment and the term ‘external environment’ consists of anything outside the organisation/industry which can affect the present or future activities. According to Kew and Stredwick(2010), it is useful to look at external environment in two separate levels. One is general/macro environment(consists of national culture, traditional ideology/values, legal and political factors, technological developments, level of literacy, demographic factors, available resources, natural environment, economy, social structure and so on) and the other one is task/micro environment(includes labour market, suppliers, competitors, customers and market condition). The difference between these two types of environment is not static and changes regularly. In fact, elements of general/macro environment are continuously breaking through to task/micro environment and causing impact on industries/organisations. The organisations/industries play a role of an open system here, where they are taking resources from the environment and converting them into some good/service, which is returned to the environment to satisfy need of the users/consumers. As the external environment affects the business, it indirectly influences the HR policies and practices(because HR is an agent of business to cope with changes and the policies of HR depend on the business constraints). Between the two types of environment, it is easier to analyse task environment(as industry/organisation know their customers, suppliers, competitors and so on), but general environment is far more complex. In order to determine which factor of general environment impacts the business more, different tools are being used. The first tool was ‘PEST’(Political/Legal,...
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