Week 2 Discussion

South University

file:///C|/Users/CWATKIM/Desktop/Influences%20of%20Environment%20on%20HRM.html[2/26/2020 5:51:31 PM]

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

South University

file:///C|/Users/CWATKIM/Desktop/Influences%20of%20Environment%20on%20HRM.html[2/26/2020 5:51:31 PM]

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.pdf

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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