Essay explains about Human Resource Management in which environment of contemporary organizations &related impacts

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Human Resource Management

The Principal Environments of Contemporary Organization and Their Impacts on HRM


An organization is like a world which is interconnected and interwoven internally as well as externally. Each aspects of an organization makes impact among each other, and so thus impact is also seen in the human resource management. The presented essay would focus on the environment of contemporary organizations and the related impacts on the human resource management internally and externally to the organization.

Internal Factors of Organization

The factors which are internal to the organization, for instance the competition, recruitment, compensation, regulation, and employee relations, is related to the human resource management (Johnson and Szamosi, 2018). These strategies need to be changed from time to time according to the changing factors for the sustainability of the organization.

The corporate world is witnessing higher levels of standards and credibility, thus increasing competition among different companies. This competitiveness impacts the human resource, as this brings the management to recruit more qualified employees with respect to the requirements of the company (Noe et al. 2006). Also in accordance to recruit the best qualified employees to the organization, the human resource management must offer lucrative and alluring compensation, which would be irresistible to reject by the new employee (Bratton and Gold, 2017). The management must create the package by comparing the corporate world and the compensation structure.

The state legislation creates impact on the activities of the organization’s regulation. Thus, impacting in the human resource management system (Johnson and Szamosi, 2018). The HR management has to keep records of its employees and their provident funds and other insurance related information, which are liable to the governmental policies and subject to change. The activities of the HR is to build a bridge between the company and its employees through proper interaction (Noe et al. 2006). Thus, when the company decides to give training or promote new approaches, the HR management conducts the necessary operations.

External Factors of Organization

The external factors are not in control of the organization, and thus it is difficult to assume anything. But, when these factors are stirred the stability of the organization is disturbed and it affects the operations (Brewster et al. 2016). In this situation, the core responsibility is thrusted on the HR department.

Suppose, the Government introduces a new work compliance, a pressure builds on the HR department to abide with the law (Nath and Satardekar, 2015). Therefore the entire HR process gets influenced and the operations are hindered and slowed down. The economic environment status impacts the working of the HR management (Brewster et al. 2016). Due to the bad economy, the operations are restrained and faces financial hindrances.

Introduction of new technologies bring ease in the working environment and influence the working patterns of the organization. These technologies are used by the HR management to downsize the costings and save money for the company (Nath and Satardekar, 2015).


It is evident from the above project that when factors are altered, the stability of the organization is also disturbed and influences the working conditions of the Human Resource management. For the sustainability the organization and its different management departments must bring modifications in their working patterns. 

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