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Comparison Of Management Perceptions Human

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The human resource management operations of the companies today come under the influence of changes in economic, social, political and global contexts. Cooke, Saini and Wang (2014) state that human resource management operates in the crucial areas of acquisition, training and maintaining talent in the business organisations. They align the human resource of the company with the business strategies of the company. These factors as a result also influence the HRM practices, which are aligned to these business strategies. The following are the influences on these factors on the HRM operations in organisations:

Economic factors:

Commercial organisations have realised that talent acquisition and management is empirical to their growth and retention of market dominance. According to Peppard and Ward (2016) these commercial organisations acquire human resources from the labour markets in the countries in which they operate. This brings them under the economic factors in force with the economies and the labour market in them. 

The first economic factor influencing the human resource management in organisations is the quality of human capital available in a labour market. Jenkin (2017) states that highly qualified workforce enables the HRM departments in companies allocate their workforces more strategically in the various areas of business. For example, the average qualification of the workers in Australia is graduate and even postgraduate. This also proves that highly qualified workers enable the companies to achieve high productivity.

The second important economic influence on human resource management operations is economic condition of a country. High per capita income results in more demand of goods and services among the consumers. This increase in demand results in greater production of goods and services, which encourages growth of GDP and higher requirement of human resources in the producing firms. For example, higher per capita income means higher disposable income in the household sector which encourages follow of capital into the industrial sector due to purchase of products. This allows the firms to earn higher profits, which they can reinvest into production. Higher production requirements in the organisations encourage their HR departments to employ more human resources (Murphy 2017). Thus, it can be inferred that higher per capita income and GDP have strong impact on the HRM operations.

Technology and knowledge have emerged as the third economic factors, which affect human resource management operations. Availability of advanced technology makes human resource management more dynamic and robust. The multinational companies use advanced human resource management softwares, which enables them to integrate and manage data of employees, deputed in their offices in different countries. The advanced knowledge management system enables the HR departments to acquire, maintain and share data on employees to all the departments within the organisations. Thus, availability of advanced technology and knowledge have positive influence on human resource management operations.

The fourth important economic context in which human resource management functions is the presence of labour unions. The labour unions enter into bargaining with the human resource departments of corporate organisations and force them to pay minimum legitimate compensations to the employees and demands better working conditions (Ehnert et al. 2016). Thus, the presence of labours unions have significant impacts on the human resource management operations and compel them to provide better wages and working conditions to employees.


The social factors like changing demographics, increasing demand for work-life balance (WLB) and plummeting importance of social media have important impact on human resource management operations.

The first factor influencing HRM operations strongly is changing demographics. Today organisations especially the multinational organisations employ human resources from all around the world. The human resource management operations in these organisations have to take into accounting the cultural perceptions in order to employ and make them work. Another demographic factor influencing HRM operations is the need to manage senior and new employees. Better medical and lifestyle facilities allow the senior employees to work for longer tenure. The HR departments as a result have to allocate the available jobs among the senior and junior employees of the organisations.

The second important social context influencing HRM operations is the increasing importance of WLB and social media. The employees especially the senior and high performing employees today demand facilities like WLB and work from home (WFH). This requires the human departments to form policies like WLB and WFH to retain these senior and efficient employees.


Political contexts:

The political contexts like government policies, laws, international labour laws and bilateral relationship between nations have deep effect on the human resource management operations.

The first important political factor influencing human resource management operations in commercial organisations are the policies formed by governments. The domestic companies have to follow the laws formed by the governments of their resident countries while the multinational companies have to abide by the policies formed by both home countries and host countries. The HR departments of the companies have to frame their employee policies according to the laws made by the governments. For example, the Fair Work Act 2009 applies to all the commercial organisations operating in Australia irrespective of the industry, scale of operations and nature of work ( 2017). Thus, government policies have very important influence on HRM operations.

The second important factor influencing human resource management operations is the international and bilateral relationships between nations. The companies have to frame their labour policies according to the conventions of international bodies like the International Labour Organisations. Bilateral agreements between countries have important bearing on the human resource management operations. International agreements between countries allow multinational companies to expand globally. This requires their HR departments to expand their human resource management to employ human resources from the host countries. For example, Australia has strong relationship with developed countries like the United Kingdom and France. The country also has strong bilateral relationship with emerging markets like China, Brazil and India ( 2017). Thus, it is evident that the Australian multinational companies require incorporating their HRM according to the international agreements between Australia and these countries. While operating in these countries the HR departments of these companies also have to incorporate the laws in force in the host countries to operate in these countries. The political contexts like wars, terrorist activities and political disturbances however hamper HRM as they result in companies losing employees and markets.

Global contexts:

The global contexts influencing human resource management operations in the companies consist of factors like politics, economic conditions, social conditions, technological advancements. These factors influence the HRM operations of all the companies especially global companies. The political conditions like international relationship and government policies require the companies to frame their employee policies. Similarly, the global economic contexts like per capita income and labour unions have strong influence on the employee management (Crane, Matten and Spence 2013). It can also be pointed out those technological factors like advanced HRM software enable firms to control their workforces employed all around the world. The HR departments of multinational companies require incorporating international labour laws in their employment policies while employing workforces globally. Thus, human resource management operations in companies especially global companies incorporate global factors like politics, society and technological advancements.



Cooke, F.L., Saini, D.S. and Wang, J., 2014. Talent management in China and India: A comparison of management perceptions and human resource practices. Journal of World Business, 49(2), pp.225-235.

Crane, A., Matten, D. and Spence, L.J., 2013. Corporate social responsibility in a global context.

Department of Foreign Affairs and Trade. (2017). International relations. [online] Available at: [Accessed 3 Oct. 2017].

Ehnert, I., Parsa, S., Roper, I., Wagner, M. and Muller-Camen, M., 2016. Reporting on sustainability and HRM: A comparative study of sustainability reporting practices by the world's largest companies. The International Journal of Human Resource Management, 27(1), pp.88-108.

Jenkin, C. (2017). Workforce is the most skilled ever. [online] NewsComAu. Available at: [Accessed 3 Oct. 2017]. (2017). Fair Work Act 2009. [online] Available at: [Accessed 3 Oct. 2017].

Murphy, J. (2017). Truth about Australia’s ‘income growth’. [online] NewsComAu. Available at: [Accessed 3 Oct. 2017].

Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a digital strategy. John Wiley & Sons.


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