HRM- FUNCTIONS AND
EXTERNAL FACTORS AFFECTING
HRM
Samir Adhikari
MBA
NP000363
INTRODUCTION
Organizations are constantly moving towards
attaining the objectives and goals that they have
set.
 Various function contributing to this goal,
Human resources being one.
 According to Nzuve (1997), Human Resource
refers to the individuals within an organization
whose activities contribute to the organization’s
success that is, achievement of organizational
goals and objectives.

HUMAN RESOURCE MANAGEMENT (HRM)



Human resource management is one of the
integral functions of the organization that
manages the overall workforce.
Human Resource Management (HRM) is a
function of an organization, which focuses on
recruiting, managing, directing and providing
guidelines to the employees of an organization
Main objective is to effectively deal with matters
relating to the employment and the employees.
OBJECTIVES OF THE STUDY
To understand HRM and functions of HRM
 To analyze the functions of HRM
 To understand the external environmental
factors affecting HRM
 To analyze the influence of external factors on an
organization
 To evaluate the changing role of HRM in 21st
century.

METHODOLOGY OF STUDY

The study is based on secondary data from
article, journals, books and the information
available on the internet.
LIMITATIONS OF THE STUDY
The study is solely based on secondary data.
 The study is analyzing only the external environment
factors affecting HRM. There are many other factors
that influences HRM.
 The study on changing role of HRM in 21st century
may not be applicable to all the industry

FUNCTIONS OF HRM

Mainly divided into 3 categories:

operative functions


managerial functions


Related to operations
Related to planning, organizing, directing, controlling.
advisory functions

Advising top management and departments.
OPERATIVE FUNCTIONS

Recruitment and Selection
Recruitment is a process of hiring people to meet the
organization needs.
 Selection- part of recruitment process where
candidates applying for a vacancy is finalized and
hired.
 Process includes planning, job analysis, job design,
interviews, tests, etc.


Training and Development

Emphasizes on developing employee’s skills to
achieve the required goals.
OPERATIVE FUNCTIONS

Professional Development


Providing employees with the opportunity for growth
in their career
Compensation and Benefits
Providing benefits to the employees keeps them
satisfied and encouraged to work
 benefits and facilities provided to the employee for
their well-being;
 Eg. working hour flexibility, maternal/ paternal
leave, insurance, holidays, incentives, etc.

OPERATIVE FUNCTIONS

Performance Appraisal
Evaluating employee’s performance is a function of
HRM
 Done to improve the one’s who are behind and
appreciate those who have excelled


Ensuring Legal Compliance

be aware of the laws and policies that relate to
employment, working conditions, minimum wage, tax
allowances, etc.
MANAGERIAL FUNCTIONS
Planning: collecting, analyzing and identifying
current plus future workforce requirement
 Organizing: process includes assigning tasks as
per employee’s skill, delegating authority
according to task assigned and coordinating their
activities.
 Directing: Employees should be inspired,
encouraged and directed to achieve
organizational goal
 Controlling: Controlling is to check whether the
activities are as per the plan set and to detect
any divergence.

ADVISORY FUNCTION

Top management Advice


Advising top management in formulation and
evaluation of personnel programs, policies and
procedures
Departmental Head Advice

Offering advice to departmental heads relating to
manpower planning, job analysis and design,
recruitment and selection, placement, training,
performance appraisal, etc
RAYMOND SHOP PVT LTD
Established in the garments industry
 focusing on distributing and retailing
 operates in a franchisee model
 have about 100 employees who work in different
area of the organization.

EXTERNAL ENVIRONMENT FACTORS THAT
AFFECT HRM

Physical Factor
the geographical locations of the organization. Other
physical elements such as climate, altitude, etc.
 As located in the city HR managers of Raymond hire
employees with liberty of choosing the best candidate.


Technological Factor:
HRM needs to analyze its requirements with the
rapid change of technologies
 For Raymond, inclination towards technological
procurement and management has created the need
for people with technical skills in this area.

EXTERNAL ENVIRONMENT FACTORS THAT
AFFECT HRM

Social Factor
Employees expect their social security along with their job
security
 increasing trend of different organizations to provide
provident fund to the employees, Raymond has started the
same


Political and Legal Factor
Laws and regulations affect the function of HRM from the
point of recruiting to laying off
 Raymond has to hire full time employees instead of part time
due to new regulations regarding wages in employing parttime employees.


Economic Factor
When the economy as a whole is in good health, there are
various opportunities created for expansion, thus creating
workforce requirement
 As economy is at growth, expansion opportunities for
Raymond has increased.

CHANGING ROLE OF HRM IN 21ST CENTURY
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Here are some of the data collected from 2014
collected by PWC and Delloite
34% of business executives report that their HR and
Talent Programs are “just getting by” or
underperforming.
93% of CEOs recognize that they need to change their
strategy for attracting and retaining talent, but 61%
admitted that they have not yet taken their first step
to do so.
Less than 8% of HR leaders are confident that their
teams have the skills needed to meet the challenge of
today’s global environment to consistently deliver
innovative programs that drive business impact.
CHANGING ROLE OF HRM IN 21ST
CENTURY
Outsourcing
 Increasing significance of corporate values and
culture
 Strategic partner
 Champion of Globalization
 Employee Advocate
 Managing diverse workforce

CONCLUSION AND RECOMMENDATION
HRM in today’s world must be able to
understand the need of its employees and create
a strong relationship between the management
and the employees. This will help the
organization to achieve its objectives in a
effective and efficient manner.
 The key to achieving success for a HR manager is
being anticipative of the environment and
building a proactive mentality to overcome the
difficulties that may arise.

THANK YOU