Impact of external environment on personnel management
(2000) refer that some firms compete in industries that require rapid responses to market and technological changes. Market changes reflect unpredictable customer needs for an increasing variety of products, whereas technological changes reflect continual advances that occur with the introduction of new products in such industries, firms that possess the manufacturing flexibility to introduce modified or new products at minimal cost and lead time will gain competitive advantage over others” (). Many of works in organizational theory address how organizations should arrange their structures to respond to uncertainty in the external environment. Thus, firms in relatively certain and predictable environments should have a mechanistic structure with greater subdivision of tasks and simpler jobs. In contrast, firms in uncertain and unpredictable environments should have more organic structures, with less specialization and more complex jobs. In addition, there has been personnel inspired organization theory and literature as there continues to examine external business issues, and recent work on HR management closely aligns with effective work milieu. Furthermore, (1998) suggest that firms will require strategic flexibility to survive in global environment characterized by rapid technological change. (2001) specifically test flexibility as a response to the environment, findings suggest that firms in heterogeneous, or more difficult to predict, environments tend to have more modular or flexible structures than their counterparts facing more homogeneous environments. modular structures are very flexible and adaptable just like the organic structures originally envisioned. And results provide empirical support for the theory that increases in uncertainty, in the guise of increased heterogeneity, lead to an increased emphasis on flexibility. Equally important, this research shows that the structure chosen is contingent upon the environment, which is a key element underpinning the work on flexibility and uncertainty in the operational field. Just as organic structures were deemed necessary for firms to adapt to uncertain external environments, flexibility is now seen as a way for manufacturing organizations to adapt to uncertain external environments. (1987) concluded that one way for firms to cope with increased environmental uncertainty is through increased manufacturing flexibility.
The research will focus on external environment and personnel management aspects and process. Focus on HR performance in Pakistan. Research assumptions need to be carefully tested that people are the most valuable resource of an organization, and that the management of people makes a difference to HR performance with central questions:
1 Is there any relationship between employee attitudes (job satisfaction and commitment to their organizations) and the performance of HR?
2 Does organizational culture predict the subsequent performance of
HR in Pakistan?
3 Do human resource management practices make difference to external environment and which of HR practices appear most important?
The need to aid personnel in determining where to direct their efforts in order to have most impact upon the performance of HR of about 15 small and medium-sized manufacturing enterprises in Pakistan, data provide clear picture of the links between various environment and personnel performance. The study will distinguish two sources of critical contingencies for organizations: environment and strategy. In turn, it explores how coping with each type of contingency is related to power within top management teams. Executives had high power if, by virtue either of their functional area or scanning behavior, they coped with the dominant requirement imposed by their industry's environment. Power patterns within each industry were further affected by the extent to which executives coped with the contingencies posed by their organizations' particular strategies. To recognize the external environment functions within groups of HR staff which relates to organizational theory and its structures.
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