Influences on HRM

Decisions about HRM are influenced by a number of different factors. Some are related to the nature of the organisation (organisational influences) and others to outside sources (external environmental influences). In both case, these environmental influences are the context within which specific personnel decisions are made.

1. Organisational influences
• Nature of the organisation
• Nature of the industry the organisation is part of
• Level of technology of an organisation
• Long-range strategy of organisations.

2 External Environmental influences
• Increasing government regulations and laws governing employment
• Changing nature of the labour market
• Challenges from competitors for labour.

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