Answer to Question #233820 in Management for Vrushank

Question

Assume you have to develop an HR plan for a new generation private sector bank having branches in major towns in India:

What specific external factors would be important for you to consider. Why?

Answer 1

External factors that affect the development of HR plan are called macro factors. They include the economy, labour market, demographic factors and regulatory framework.

Economy

Economic conditions such the rates economic growth and development have a huge influence over HR plans more especially in the banking sector. For example, in India there is a higher growth in the GDP meaning the market shall have more jobs due to increase in general demand in the economy.

Labour Market

Trends in the labour market are very fundamental in the development and has a direct impact on HR plans

Demographic Factors

Age of people in a country informs the development of HR plans to meet the future demand and supply.

Regulatory Framework

The regulatory-frameworks of a country more especially in India have an influence on development of  HR Plans. There are countries that are highly regulated by the government like India