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There are different matters related to the external environment that affect HR practices and strategies in firms. These include:
For organisational efficiency, HR strategy needs to be aligned with business objectives. Once HR practices support business, then more efficiency and effectiveness are achieved in an organisation. For example:
The incongruence of HR strategies and business objectives would lead to decreased employee morale, increased turnover rates, and poor organisational performance as well.
Organisational culture significantly impacts the practices within an organisation. Major ones include:
Values and beliefs are the base of an organisation, which further sub-influences the recruitment process, performance management, and all those activities related to engaging employees. The innovative-orientated culture will see HR recruiting creative thinkers.
Communication style reflection of all forms of communication within an organisation affects the HR policies related to feedback, training, and conflict resolution. Open communication allows a positive workplace culture.
Leadership Styles: Leadership style affects the expectations of those employees and HR’s role in helping leadership development. In an attempt to create a team-orientated culture, HR may place too much reliance on team-building programs.
Knowing what level of culture affects the “insiders” of the organisation assists in developing better practices in which employees are more in step, thus enhancing the effectiveness of the organisation as a whole.
Wellbeing and Support Systems: How HR can assure an employee’s well-being during the transition by consulting with an employee, having flexible policies, and putting an employee on vital support resources.
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