Contents INTRODUCTION 3 LITERATURE REVIEW 4 COMPETITION 4 Direct Competition 4 Indirect Competition 5 TECHNOLOGY 5 GOVERNMENT 5 ECONOMY 6 PUBLIC OPINION 6 CUSTOMERS 7 CASE – THE ONE (Home Décor Company) 8 CONCLUSION 10 REFERENCES 11
INTRODUCTION
There are a lot of changes in the external environment which impact human resource management. As a result of this change industries have reshaped themselves to be in the competition (Pritchett, 1994). An overnight demand of new skilled labour has risen drastically. The managerial work has also changed especially at the top level.
Most of the managers believe that an organisation can continuously do well, if there are time to time developments made by the organisation with respect to customer needs, government regulations, technology and competition (Certo, 2000).
The paper starts with the introduction of human resource management. It is followed by the explanation of external environmental factors that effects human resource management with a help of some journals. At the end, arguments explained are backed up with the live example of a company based in UAE. The name of the company is ‘THE ONE’ it faced some problems with environmental changes in human resource management in the initial stage, but it implemented some strategies to overcome the problem. According to the company, human resource is the most crucial part of the organisation without their existence the company can’t function smoothly. Thus, it has always prevented its human resource from the external environmental changes.
LITERATURE REVIEW
Human resource management is heavily influenced by internal and external environmental factors. For example, the HR policies are made according to the climate and culture of the organisation. While in order
