•Personnel manager can’t perform his job in a vacuum as a number of environmental factors affect the HRM. In fact these influence the organization through human resources. The term environment in human resources management has reference to the totality of all factors which influence both the organization and HRM sub-system. The external environment is comprised of those factors which affect an organization's human resources from outside the organization, Important among them are: economic, social, political, Governmental and legal, technological, manpower in the country, tradition and culture, customers, other organizations and trade unions in other organizations.
•The internal environment also affects the job of a personnel manager.Impact of internal environmental factors is profound as they frequently and closely interact with HRM function in an organization. Thus, the internal environment of an organisation influence heavily the HRM.