1. Briefly explain the changing role of human resource management in today business.

Previously as we know that human resource management are those who primarily responsible for coordinating the management of human resources to help the organization achieve its goals. Human capital is one of the most critical parts in a company in order to success. As we know, employees provide an organizations human capital. Human capital is the set of skills that acquired on the job, through training and experience, and which increase company value in the marketplace. Furthermore, in order to play HR role in todays organization, HR engaging themselves in few important role in helping organization to navigate themselves to the transitions of todays market. For example, rapid technological change, high competition level among industries, organizational changes and etc. Besides that, todays human resources management changed drastically important in organizations because todays knowledge economy requires employees to contribute ideas and be engaged in executing the companys strategy. By having the right employees for the company that aligned with company strategy could further the company goals properly. 2. To what extent can outsourcing be applied in human resource functions? Outsourcing is that when external providers are being hired to do the work that previously done internally. When HR is outsourced, it may be applied to functions that are highly-specialized, efficiency and work quality can be optimized. When HR functions are outsourced, the corporation can greatly reduce the processing time needed for these tasks. The external vendor will likely have a better quality work output due to expertise in the field. The internal HR team can thus focus on carrying out tasks that are in line to the companys main business values and operations, thereby maximizing their efficiency. Outsourcing is being done in three ways, discrete service, multi-process service and total HR outsourcing. Moreover, in todays world, although most of the organizations expect to outsource more in future but the strategic components of HR are still likely remain within the organization. 1

3. How do external environment impacts the effectiveness of human resource practice? External environment is the factors outside an organizations boundaries that affect firms human resources makeup. There are few external environmental that will impact on the effectiveness of human resource practice. Specifically, union is that employees are joined together and they have the power of bargaining on their wage level with their employer in order to get a beneficial agreement for them. Under legal consideration, laws and regulations regarding hours of work, holidays, equal employment, affirmative action, sexual harassment, workers compensation, health and safety, fringe benefits and terminations clearly impact on HRM. For example, employee biases, discrimination of gender in a department are all issues that related to human resource. Moreover, government and community concern regarding environmental issues such as workplace environmental pollution affects health and safety, industrial relations and the image of an organization. In terms of technological, HR technology been automated for administrative purposes and nowadays portable PC make life easier in order for employee to work from home. Besides that, customers are those that use company products and services and employee should not antagonize the customers because sales are crucial for the firm survival. In economy perspective, such factors as the level of economic activity, the unemployment rate, the degree of centralized economic planning and etc. directly and indirectly influence industrial relations and labor turnover of the company. Besides that, competition occurs almost in all industries and firms should maintain sufficient employee to compete with others. Additionally, shareholders are those invest to the company that expects return in investment from the company and they are those that considered as beneficial to the company. In addition, the capabilities of firms employees determine to a large extent how well the company performs its mission.