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As indicated in the conceptual framework, following the
development of an investment per spective for making strategic
decisions about human resources, managers need to scan the
environment before formulating strategy. This section examines
the numerous factors making up the environment of human
resources as well as emerging trends. Because of its complexity
and importance, the legal environment of human resources is
covered separately.
Inarguably, the human resource environment is currently
more turbulent than in any other period since World War II.
During the last 10 years of the twentieth century, many political
developments at home and abroad had massive impacts on
human resources. Eastern European countries were freed from
occupation by the Soviet Union, the Soviet Union was broken
up into independent but unstable nations, civil wars broke out,
and in less than one year East and West Germany were
reunited. Almost overnight, previously communistic Eastern
European countries became markets for western goods,
suppliers of labor, and business competitors. The economic
sphere of the European Community became a reality, as did the
North American Free Trade Agreement (NAFTA).