External factors affecting the practice of JHRM may include Social,
Cultural, Politicaland Economic factors. Changing economic conditions
directly influence all operations ofany organization, including its human
resource activities. Also the human resource lawsand regulations of
governments have become increasingly important to employees(Milkovich
and Boudeau, 2000). According to Gratton et al (1999) the significance
ofenvironmental and contextual factors has been long acknowledged in
shaping humanresource strategies, and in the ability of the company to
realize these strategies. Thegrowth of the concept of a strategic approach to
managing people can be attributed torapid environmental changes that have
taken place over the last two decades. Theseenvironmental influences
operate at a general level, and at a more specialized levelconcerned with the
organization’s own significant environment