How External Environment Affect Hrm
Human resource management cannot operate in a vacuum, therefore it is affected by environment within and outside the organization. These environments influence human resources policies and practices so that they suit the environment in which the organization is operating. (Boxall, & Purcell, 2008) argued that “There is no one model of human resource strategy which suits all circumstances. Instead, different strategies are appropriate in different environmental and organisational settings”.
This essay shall discuss the three external and internal factors that shape the effectiveness of human resources management as a field of practice and discuss how they or may positively or negatively impact the work of HR specialists at Ernst & Young Malawi.
External Environment
Kane & Palmer described external environment as “pressures that cannot be controlled and changed in a favorable way in the short run” (Kane, & Palmer, 1995). Ernst & Young Malawi’s human resource management policies and practices are directly affected by, three key external factors, these are; economic, legal/ legislation and social changes.
Economic change significantly affect business operations in Malawi in both ways negative and positive, recent devaluation and instability of Malawi kwacha, and scarcity of foreign currency. From human resource
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Ernst & Young’s mission is to be the “largest auditing Firm in Malawi by 2020 through exceptional client service”. The mission therefore forms basis for the human resource specialist to formulate policies and practices that are vertically integrated with the mission. In this case human resource policies should support exceptional client service through human resources activities like, sophisticated recruitment, training and staff development, talent management, recognition and
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