Kane And Palmer Case Study

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Recommended: Internal and external influences on organizations

External influence: Kane and Palmer (1995) explained the external factors affecting HR practices as those factors that are beyond the organization’s control. It is essential to study these external influences in detail as they greatly affect effectiveness of HR practices. These factors cannot be overlooked and thus, a well-developed strategy is required to improve the outcomes of these influences on the HR practices in an organization.
• Economic Changes: Economic policies are easily changing the shape of the current economy and they are one of the biggest influences on effective HRM practices. It not only can change the current competency level in an organization but can change organization’s entire selection criteria, compensation structure. …show more content…

Improved technology facilitates improved HRM functions like selection, training, recruitment, performance appraisal etc. Technology advancement results in quicker implementation of HR developments. The technology advancements improve HRM policies of organization which can be further implemented in an effective way. However, the technology advancements have also a negative impact on HRM policies, when technology advancements are introduced in an organization; the need of labor gets decreased and so is the employment rate. As a result, the need and demand for high skilled employees who can cope with the advanced technology gets increased which increases the manpower and training …show more content…

Competitors may increase salaries, wages and improve working conditions or provide better employment programs, which will react to firm effectively. Thus, well organised can provide a better and effective source of competitive advantage (Barney & Wright, 1997). As a result, competitors will respond to these policies in order to retain and satisfy their existing employees.
How to overcome it? According to Rosenzweig & Nohria, 1994 executive bonus and participation have impact of competitors on HRM policies. Framing of comprehensive HRM practices can provide competitive advantage to the organisation.
Industry characteristics: Industry characteristics also influence HRM practices in various ways. Manufacturing, retail, food and health and construction sectors create their own HRM policies as per the requirement. Many sectors are quite sensitive to needs of human resource and few may not require it at all, considering the skills and abilities of their human resource. The companies need to follow and consider competitive practices in order to retain human talent in their

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