HRM - key influences

External Influences

Corporate objectives
E.g. an objective of cost reduction is likely to require HR to implement redundancies, job reallocations etc

Market changes
E.g. a loss of market share to a competitor may require a change in divisional management or job losses to improve competitiveness

Operational strategies
E.g. introduction of new IT or other systems and processes may require new staff training, fewer staff

Economic changes
E.g. the recession of 2009/10 has placed great pressure on HR departments to reduce staff costs and improve productivity

Marketing strategies
E.g. new product development and entry into a new market may require changes to organisational structure and recruitment of a new sales team

Technological changes
E.g. the rapid growth of social networking may require changes to the way the business communicates with employees and customers

Financial strategies
E.g. a decision to reduce costs by outsourcing training would result in changes to training programmes

Social changes
E.g. the growing number of single-person households is increasing demand from employees for flexible working options

Political & legal changes
E.g. EU legislation on areas such as maximum working time and other employment rights impacts directly on workforce planning and remuneration