Human resource management is an activity undertaken to attract, develop and maintain an effective workforce within an organization (Daft, 2010). The people make up an organization give the primary source of competitive advantage and human resource management play a key role in finding and developing the organization’s people as human resource that contribute to and directly affect company success (Daft, 2010).
All of organization, human resource management is indispensable but not all of the organization can really to operate so easily. Human resource management also is one of important department to achieve an organization’s goal.
People are the key resource in creating a successful organization (Dumler and Skinner, 2008). From this sentence, we know that people are the most important asset of an organization. Therefore, human resource management professionals act to guide and assist line managers in managing their human resource sources to achieve the organization’s strategic goals.
2.0 Environment of Human Resource Management
Managers should pay attention for the surrounding area or inside firm to avoid any unnecessary thing that can impact on human resource management. There are lot of factor that surround the environment can affect human resource management. It can divide to two part; internal environment and external environment. 2.1 Internal Environment
Just like the word from the internal environment, it is the factor from inside of firm. There is two factor of internal environment that impact on human resource management; product and services and organizational culture. 2.1.1 Product and Services
The importance of a product or service is a factor that can effect on human resource management. For example, a product lead pencil just has changed little in the last 50 years or more, but a product Smartphone that just can has changed magnify within 5 year or less. These considerations determine the required skill level of employees or the extent to which employees need to be flexible and adapt to change. (Black and Porter, 2000) Therefore, it will affect on recruiting, selecting, training, and compensation. 2.1.2 Organizational Culture
The culture of the organization also is one of important factor impact on human resource management. According to Black and Porter (2000), he defined that the culture determined the type of people who were recruited, how they were selected, the type of orientation and socialization they received, the content of the training they received, and the nature of the development experiences they were given. Therefore, some of people may have high significant are not hired because of they are not same type of people in their firm’s culture. 2.2 External Environment
The external environment is the bigger element that impact on human resource management compared to the internal environment. There is lot of factors; it includes customers, competitor, suppliers, workforce diversity, globalization, legislation, and union. 2.2.1 Customers
Black and Porter (2000) states that who a firm’s customers are and what need may have a significant impact on the type of people the organization need to hire, the training they will need, how they should be evaluated, and what rewards will motivate them to best serve the customer’s need.
To hire an employee, different type of organization will follow what the organization ability need on that employee to serve their customer. Customer is most important revenue for a firm. Most of all if there no customer, it means that is no income in that firm. 2.2.2 Suppliers
Suppliers also can influence the appropriateness of human resource management practices. Not all firms can provide all of the materials and inputs they need for all their products and services. Therefore, they must purchase them from others. The level of supply and demand need for input and quality level from suppliers are representing some of the critical problem...