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2 - Environment of SHRM

from PART II - Context of SHRM

Published online by Cambridge University Press:  26 April 2019

Feza Tabassum Azmi
Affiliation:
Aligarh Muslim University, India
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Summary

Chapter Overview

In this chapter, we shall learn about the nature and concept of business environment and its various components. Issues related to how the components of a business environment affect organizations and human resource (HR) policies and practices are discussed. Various trends and emerging dimensions of the business environment with relevance to human resource management (HRM) are also highlighted.

Learning Objectives

  • To understand the concept and relevance of business environment

  • To identify the features and components of business environment

  • To understand in detail the external and internal environmental forces and their implications for HRM

  • To identify the emerging trends in the environmental forces and how they are likely to alter the HR context

  • OPENING STORY

    India's Economic Growth

    The national portal of the Government of India mentions that India has emerged as the fastest growing major economy in the world, according to the International Monetary Fund (IMF). It is the world's sixth largest economy by nominal gross domestic product (GDP) and the third largest by purchasing power parity (PPP). The Indian economy grew at 7.7 per cent in the first three months of 2018. India has one of the fastest growing service sectors in the world, with an annual growth rate above 9 per cent since 2001.

    Advantage India

    Major strengths of India are as follows:

  • • World's largest democracy with 1.2 billion people

  • • Stable political environment and responsive administrative setup

  • • Well-established judiciary to enforce rule of law

  • • Land of abundant natural resources

  • • India's growth will start to outpace China's within 3–5 years and, hence, will become the fastest-growing major economy with 9–10 per cent growth over the next 20–25 years

  • • India is coming up with investor-friendly policies

  • • India's economy is likely to grow five-fold in the next 20 years

  • • It has a large pool of skilled manpower with a significant English-speaking population

  • • India has a demographic dividend—it is a young country with a median age of 30 years

  • • India has a huge untapped market potential

  • • Progressive simplification and rationalization of direct and indirect tax structures

  • • Robust banking and financial institutions

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    Publisher: Cambridge University Press
    Print publication year: 2019

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    • Environment of SHRM
    • Feza Tabassum Azmi, Aligarh Muslim University, India
    • Book: Strategic Human Resource Management
    • Online publication: 26 April 2019
    • Chapter DOI: https://doi.org/10.1017/9781108687058.003
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    • Environment of SHRM
    • Feza Tabassum Azmi, Aligarh Muslim University, India
    • Book: Strategic Human Resource Management
    • Online publication: 26 April 2019
    • Chapter DOI: https://doi.org/10.1017/9781108687058.003
    Available formats
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    To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

    • Environment of SHRM
    • Feza Tabassum Azmi, Aligarh Muslim University, India
    • Book: Strategic Human Resource Management
    • Online publication: 26 April 2019
    • Chapter DOI: https://doi.org/10.1017/9781108687058.003
    Available formats
    ×