UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

another. Culture may be stated as sharing some core values or beliefs by the members of
the organization.
The culture of an organization is like the preserved culture of a family, the tradition
of a group or race. Culture identifies the group and the group cherishes it. Some
organizations are highly respected for the culture it has preserved and any deviation may
even be resented by its customers and the general public as well.
HRM has the delicate but important role in preserving and nurturing the
organizational culture. Conflict usually surfaces because of dualities such as personal goal
as against organizational goal, discipline as against autonomy, right as against duties etc.
Such conflicts have their bearing on HR activities in an organization.
Professional Bodies
Professional bodies have a role to play in maintaining proper internal environment.
Chartered Accountants, doctors, lawyers etc., have professional bodies which regulate and
maintain the dignity of their profession. Erring members can be punished by the
professional body and they down rules and procedures for good conduct and ethics. So lay
also The National Institute of Personnel Management advices and regulates HRM
activities.
External Environment
Economic, political, technological and demographic factors have a bearing on
external environment. These forces have considerable influence on HRM.
Economic Factors
Economic forces include growth rate and strategy, industrial production, national
and per capita income, money and capital markets, competitions, industrial labour and
globalization.
A sustained growth and higher GDP gives lot of scope for HRM in the search of
talents and innovations. Higher the industrial production, it unleashes its impact in various
sectors giving lot of scope for HRM activities. Where money and capital are vibrant and is
in the increasing tempo, it may lead to higher investment and activities leading to greater
demand for human resources. Globalization has opened new vistas where competitive
edge and highest quality of products and services are needed. This imminent need gives lot
of scope for HRM activities.
Political Factors