Supporting Lecture:

Review the following lecture:

• Influences of Environment on HRM

Project

The project assignment provides a forum for analyzing and evaluating relevant topics for this week on the basis of the course competencies covered.

Introduction

It is important to develop and understand numerous environmental business challenges. Therefore, it is important to monitor any number of factors related to HRM.

Tasks

The following environmental factors economics, politics, and technology can impact your career. Include a discussion for each as to what policies should the HR department develop based on the tasks below:

• Analyze the environmental factors.
• Critique how the environmental factors might impact your career.
• Assess which environmental issue will critically impact business in the future, including why and how this issue changes over time.
• Considering the technological environment, evaluate how this has impacted your life as a student and as an employee. Predict how it will impact the working patterns of employees.

To support your work, use your course and text readings and also use the

South University Online Library

. As in all assignments, cite your sources in your work and provide references for the citations in APA format.

Submission Details

• Present a 2- to 3-page paper in a Microsoft Word document formatted in APA style. Cite any sources using the APA guidelines.
• Name your file as SU_HRM5010_W2_Project_LastName_FirstName.

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Influences of Environment on HRM
HRM strategy is determined primarily by the overarching organizational strategy created by its executive
leadership. Strategic HR planning may also be influenced by the environment in which it operates. There
are environmental factors that shape HRM strategy, so HR managers and planners must continually
monitor the environment. Let’s look at an example.

United Airlines is a longtime customer of Boeing Airplane. Boeing builds great airplanes and United uses
them in their business to transport passengers. Two different businesses with two different corporate
strategies. But when Boeing began building the 777 in the early 1990’s, Boeing and United joined to create
a unique “Working Together” agreement. This agreement, new for both organizations, created a new
climate for Boeing’s customer relationships. Over the five years of development of the 777, the Working
Together pact resulted in over 1,200 design changes of which over 300 were classified as significant
redirections for the 777. This is an example of how customer involvement can bring success to an
organization. This example underscores how strategic planning is affected by the environment in which
Boeing operates and also demonstrates how strategic planners use information about their environments
to respond to threats or capitalize upon opportunities.

Trends such as the Working Together agreement will certainly impact an organization internally and HRM
strategists will monitor trends in order to formulate policies and procedures for employee management.
Typically, leadership will monitor their environment by reading publications, maintaining memberships in
professional associations, attending conferences or seminars, or hiring professional scanners. A number of
methods, such as trend and impact analyses, scenario planning, and the Delphi technique are used to
identify future trends. The environmental factors that are monitored include economic climate and social
norms. Stakeholders such as shareholders, unions, customers, and executives contribute strongly to the
formulation and implementation of strategy.

Additional Materials

From your course textbook, Managing Employee Performance and Reward (2nd ed.), read the following
chapters:

Shaping Behaviour

Reviewing and developing employee performance

Base pay purpose, structures and options

Developing position-based base pay systems

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From the South University Online Library, read the following article:

Emerging Trends in Contingent Work Research

From the Internet, read the following articles:

Benjamin, T. (n.d.). External & internal environmental factors influencing HR activities. Retrieved from
http://smallbusiness.chron.com/external-internal-environmental-factors-influencing-hr-activities-
34745.html

Journal of Management Engineering and Information Technology. (2015). A comprehensive review of
factors influencing HRM practices in manufacturing industries. Retrieved from
http://www.jmeit.com/JMEIT%20Vol%202%20Issue%202%20Apr%202015/JMEITAPR0202006

U.S. News. (2015). 5 employee benefit trends to watch in 2016. Retrieved from
http://money.usnews.com/money/personal-finance/articles/2015-12-15/5-employee-benefit-trends-to-
watch-in-2016

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