Factors Influencing Hrm

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Abstract The following essay is an effort to understand the notion that human resource functions cannot be performed in isolation. There is an intense need to identify the external and internal factors that influence the HRM functions and practices. The essay also identifies how successful companies like Nokia, Sony, Panasonic, Ikea, Commonwealth bank, have managed the impact of various internal and external factors to become leaders in their industry. Human resource management has achieved significant importance in recent years both in terms of theory and practice and corporations today cannot ignore the importance of managing human capital in order to achieve their goals and objectives. Factors Influencing Human Resource Management…show more content…
Now let's understand how few of those external and internal factors affect the HRM functions. Legal and political environments affect almost all aspects of the HRM functions. Different organizations have to follow different set of rules in context of their HRM functions. According to McKinnon & Murphy (2006), certain legislations are to be considered before conducting a recruitment and selection process such as; privacy that includes ethical and other legislative issues. For example, Nokia believes that complying with relevant national laws and collective agreements as well as internationally recognized standards and practices, such as those of United Nation's Universal Declaration of Human Rights, the International Labor Organization and Global Compact, is fundamental to their employment practices and the way they carry out their business globally (Nokia, 2007). According to Brewster and Hegewisch (1994), as US corporations expand their operations abroad, they face additional legal concerns in terms of HRM policies and practices. For example, in European countries, organizations are obliged to set aside specific sums of money for formal training and development. And for corporations that employ expatriates abroad, immigration and taxation treaties can influence staffing decisions (Dowling PJ, Schuler RS, Welch DE. 1994). In an example of Hewlett-Packard,
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