Q1 Explain with example any ONE (1) external factor and ONE (1) internal factor which could affecting human resource management. (10 marks) Definition: Human Resource Management (HRM) is defined as the process of managing human talents to achieve an organization’s objectives. Human resource departments play an important role in areas such as staffing, employee relations and legal compliance within organizations. In order to achieve success, organizations have to look on the internal and external factors affecting human resources.

External factors -Factors that affect a firm’s human resources from outside the organization’s boundaries Example: 1) Technological Changes – technology changes rapidly and HR must cope up with this change to ensure the successfulness of the organization. For example, by computer and internet rather than writing manually, using e-Commerce, e-banking, HRMIS, ILMS, etc. it ensure faster and flexibility in work and up to date. 2) Competition – firm may face intense competition in the market.

Competent employees guaranteed organization successfulness over its competitors. They must possess uniqueness to be competitive advantage with skills, knowledge, quality in order to create customer’s trust. For example, Samsung and Apple nowadays are selected as favorites gadgets compared to Nokia because of their technology. Internal factors -Factors that affect a firm’s human resources from inside the organization Example: 1) Finance – Cost for recruitment, paying salary, budget for training, etc.

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For example, more people stay in government sector because of the benefits and their work are guaranteed. Some people prefer in private sector because of big commission and bonus. 2) Organizational Policy – policy on how organizations manage their employees. For example, some office has rigid rules to follow such as working time and break time like in factory. Some office tend to have flexi-time where the workers can make their job anytime before due date.


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