From an IHRM perspective, the economic system is one determinant of the way in which HR programs and practices are used.

Question

Quizplus · Accepted Answer

The economic system of a country can influence the availability of resources for HR programs, the way labor is organized, and the legal and regulatory framework for HR practices. For example, in a market-oriented economy, the labor market may be more competitive and individualistic, which can shape the way compensation and performance management systems are designed. On the other hand, in a more centrally planned economy, the government may have a greater role in setting wage rates and regulating employment practices. Therefore, the economic system is an important factor for IHRM professionals to consider when designing HR programs and practices.

From an IHRM Perspective, the Economic System Is One Determinant