Directorate of distance education master of business administration

Professional Bodies     
 
Professional bodies have a role to play in maintaining proper 
internal environment. Chartered Accountants, doctors, lawyers etc., 
have professional bodies which regulate and maintain the dignity of their 
profession. Erring members can be punished by the professional body 
and they lay down rules and procedures for good conduct and ethics. 
So  also The National Institute of Personnel Management advices and 
regulates HRM activities. 
External Environment 
 
Economic, political, technological and demographic factors have 
a bearing on external environment. These forces have considerable 
influence on HRM. 
Economic Factors 
 
Economic forces include growth rate and strategy, industrial 
production, national and per capita income, money and capital markets, 
competitions, industrial labour and globalization. 
A sustained growth and higher GDP gives a lot of scope for 
HRM in the search of talents and innovations. Higher the industrial 
production, the more it unleashes its impact in various sectors giving 
a lot of scope for HRM activities. Where money and capital are vibrant 
and is in the increasing tempo, it may lead to higher investment and 
activities leading to greater demand for human resources. Globalization 
has opened new vistas where competitive edge and highest quality of 
products and services are needed. This imminent need gives a lot of 
scope for HRM activities.