Why must external environment forces be considered in the design of an HRM program?

Answer 1

Because external environmental forces are typically out of the control of the organization, yet they will affect the organization in either a positive or negative way. Therefore, organizations must collect data, analyze that data, and develop appropriate research, planning, strategies, tactics, forecasting, etc., as a result of the change and affect the external forces will have on the internal environment of the organization. For example, the economy is an external environmental force. It is outside the control of the organization yet still effects it. If the economy is peaking, then people may spend money more freely which then would have a positive affect on the company. If the economy is suffering, then people may not be spending for fear of financial concerns. This would most likely have a negative affect. Still, the company must consider the many issues faced with a changing economy. HR must forecast employee hiring, retention, or reduction in staff as a result of that change. HR may be involved in a organization of divisions or departments within the firm. HR must constantly be involved in the training and development of employees, etc. Thus, the critical tasks, and projects HR becomes involved with are to an extent dependent on what changes are occurring within the external environment of which HR must be constantly aware of.