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Analyse the response of human resource management to economic, technological and social influences. - HSC - SSCE Business Studies - Question 26 - 2017 - Paper 1
Question 26
Analyse the response of human resource management to economic, technological and social influences.
Worked Solution & Example Answer:Analyse the response of human resource management to economic, technological and social influences. - HSC - SSCE Business Studies - Question 26 - 2017 - Paper 1
Step 1
Economic Influences
Answer
Human resource management (HRM) is significantly affected by economic influences such as the economic cycle and structural changes. During periods of economic growth, companies may expand and hire more staff, leading HRM to focus on recruitment and talent retention strategies. Conversely, during economic downturns, HRM must address challenges such as downsizing or implementing staff furloughs, thus prioritizing cost management and employee support programs. The economic environment also affects salary negotiations and benefits, requiring HRM to remain competitive while adhering to budget constraints.
Step 2
Technological Influences
Answer
Technological advancements have transformed HRM practices significantly. The rise of telecommuting and new communication technologies has influenced how HRM manages remote teams, requiring the implementation of digital tools for collaboration. Additionally, disruptive technologies such as AI and automation demand that HRM continually adapts training and upskilling initiatives to ensure employees possess the necessary skills to thrive in a tech-driven environment. HRM must also navigate the implications of technology on organizational structure and employee engagement.
Step 3
Social Influences
Answer
Social changes have a profound impact on HRM strategies. Factors such as changing work patterns, family dynamics, and increasing focus on work-life balance necessitate that HRM adapts policies around flexible working arrangements and employee wellbeing programs. For instance, the rise of the gig economy has led HRM to reevaluate traditional employment models and consider the needs of a diverse workforce. Moreover, societal shifts towards inclusivity and diversity have opened discussions regarding equitable hiring practices and the promotion of diverse teams within organizations.