Below are the details about two of the important factors that affect an organisations human resources from outside the organisation

Economic Factors:

Economic conditions influence financial health of the organisation. Under favorable economic conditions, expansion of existing programmes and creation of new programmes are very likely. With less favorable or deteriorating conditions, contraction or cancellation of some programmes may be necessary.

Economic factors include all those economic forces which affect the HR function. Highly relevant economic factors are suppliers, customers, competitors, and globalization. As regards the HR department, the suppliers are those who provide human resources to the organisation. The suppliers include the universities, colleges, employment exchanges, training institutes, consultancy firms etc. The quality of inputs of employees depends upon the suppliers. Sales are affected by the product quality which is directly related to the skills and qualifications of the employees. Due to competition, employees with particular skills are hard to obtain the organisation will have to train their own employees through proper planning, training and development activities.

Technological Factors:

In the present competitive world, technological developments can dramatically influence an organisations environment. Technological advancements can create new competitive advantages that are more powerful than the existing ones.

-New technologies, generally, compel people to learn a new set of skills altogether or to upgrade their existing skills and knowledge

-New technological advancements also lead to downsizing of workers. Increased automation reduces the number of employees in the organisations.

-In many emerging industries, the positions that have been filled up with workers possessing superior technical skills and knowledge, have tilted the power base from management to technical workers

-Technological changes lead to collaborative team work where managers, technicians, and analysts work together on projects.