Political and Legal Factors Affecting Hrm

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When reviewing the literature, human resource management could be considered one of the most important aspects of the business environment. Human resource management is highly specialized and important to the success of any organization. Human resource management itself is the direction of organizational systems to ensure that human talent is used effectively and efficiently to achieve the organizational goal. Human resource management has several tasks that need to be fulfilled. The administrative role of human resources management includes office administration and accounting. Another role of human resource management is operational and employee representation, which includes the management of human resources activities and the function of intermediary between the employee and the employer. Human resources managers should contribute to organizational results by adhering to organizational and business ethics. As a result, managers at all levels need to address human resource management (Mondy, 2005). Whether employees work in a large 15,000-position company or a small 15-position non-profit agency, employees in that organization must be recruited, selected, trained and managed. Human resources management has four main tasks, for which human resources policy, management training and development, performance appraisal and remuneration policy are accountable. These tasks can be complicated by differences between countries in terms of labour markets, culture, legal and economic systems. There are problems with citizens of one country working in another country, which leads to reasons for failure. Such failures are the inability to adapt; and family problems at home.

The employee selection process must be based on technical expertise and cross-cultural expertise. These tasks can be complicated by differences between countries in terms of labour markets, culture, legal and economic systems. Those involved in human resource management do more than just hire and fire, they make sure that any kind of outside influence is heard and that proper procedures are followed to avoid prosecution and punishment. If you work in human resources, make sure you pay attention to outside influences, as there`s a good chance they will affect your work and the company you work for. So the next time you talk to someone involved in the people management process, think twice about how many factors influence their work and how important it is for them to be at the top of their game. Unemployment has risen in many developed countries, particularly in Europe, but employment restrictions and wage levels remain high. As a result, many European companies are relocating jobs to low-wage countries, as Mercedes-Benz did at the Alabama plant. In addition, personal and corporate tax rates are quite high. These factors must all be evaluated as part of the decision process to start or buy a business abroad. It is important that they be aware of all the laws that affect human resources management. They must also be able to design and implement internal policies that take into account these legal requirements. You should also be aware of standard practices and procedures in case an employee or former employee files a complaint or lawsuit.

Hiring the right person for this position not only ensures regulatory compliance, but also contributes to the overall success of the business. In the event of non-compliance, an employee has the right to sue for a variety of reasons. HR departments must therefore be aware of all laws and regulations. They also need to understand how they should deal with potential legal issues. A multicultural and autonomous workforce has necessitated decentralization of policies. Companies adapt to the guidelines according to different cultures, legality and working hours, e.g. hourly in the United States, monthly in India, in holiday policy. The uprising of people`s power trumps all other corporate loyalties.

A business today is governed more by the people than by the political bodies that have the upper hand. The scope of this research will help to understand how human resource management has evolved from a human resources department. This research will also show how the United States is a leader in human resource management. Specific areas of political and legal factors will include international trade laws; remuneration; Labour law; and cultural adaptation. Importance of research IV. Increased political instability – There have been fluctuations in political leadership around the world. Take either the case of countries like Afghanistan, Egypt, Syria or part of Europe, or it is the case of Andhra-Pradesh, where the Prime Minister has changed three times in 10-12 months, there have been fluctuations everywhere. The HR department is there to ensure that the company is compliant and protected from legal consequences. The company will always come first; never employees. For this reason, employees feel that companies lack loyalty. Prices of factors of production are continuously rising in countries such as the United States and European countries.

Firms tend to outsource their manufacturing and service base to developing countries, increasing unemployment in developed countries and employment in developing countries. Political factors determine how and to what extent a government intervenes in the economy. The importance of this research is to recognize the importance of human resource management from a global perspective. The global and political factors that human resources management and international companies must take into account are the selection and training of recruitments. This will determine whether the company will survive in the international market or not. It is common knowledge that the United States is laying the foundation for human resource management. There are 7 major trends affecting human resources, and they are as follows: There are problems with citizens of one country working in another country, leading to reasons for failure. These failures are the inability to adapt and family problems at home. The employee selection process must be based on technical expertise and cross-cultural expertise. Increasing international competition represents the need to effectively manage human resources in order to gain a competitive advantage in the global marketplace. Companies that decide to enter this market must realize that not all markets are the same as in America. The rapid growth of international outsourcing also shows the link between global competitiveness and human resource management.

A number of companies operating in a single country have recognized the need to develop more global activities. (Roberts, 2006) Investment in international trade differs from country to country. The difference determines how the operation is created. We need to understand the political and legal factors that influence international trade and how it relates to national and international practices. Political and legal factors can determine requirements such as training, compensation, hiring, firing and layoffs. Globalization HR screens new employees, which often means that a background check is conducted. If the human resources department does not verify this information, the company could face legal consequences. PESTLE will continue to change the HR department and will have to take into account changes in the workforce.

The only way to achieve this is to keep an eye on macro-environmental political, economic, social, technological, legal and environmental factors. All of these factors separate employees or unite employees. Joseph Campbell said, “Economics and politics are the driving forces of life today.” (Campbell, 2006). The main difference between domestic human resources management and international human resources management is the additional knowledge and responsibilities required as a result of operations abroad. This usually includes language; local and national regulations and laws governing business relations with a foreign country; Exchange rate; Career opportunities; benefits and incentives for businesses; and above all, the ethical and ethical expectations of foreign business contacts. (McNamara, C., 2007) The consideration of political and legal factors influencing global human resource management is linked to international business practices.