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Be Aware of Legislative Changes

30 October, 2015 - 16:22

One of the major challenges in HRM, as we discuss in  "The Role of Human Resources", is having an awareness of what is happening from a legal perspective. Because most budgets are based on certain current laws, knowing when the law changes and how it will affect department budgets and planning (such as compensation planning) will create a more solid strategic plan. For example, if the minimum wage goes up in your state and you have minimum wage workers, reworking the budget and communicating this change to your accounting team is imperative in providing value to the organization. We will discuss various legislation throughout this book.

Key Takeaways

  • As has been the theme throughout this chapter, any HRM plan should be directly linked to the strategic plan of the organization.
  • A plan should be constantly updated and revised as things in the organization change.
  • A good strategic plan provides tools to determine whether you met the goal. Any plan should have measureable goals so the connection to success is obvious.
  • Changes in a strategic plan and in goal setting are necessary as the internal and external environments change. An HR manager should always be aware of changes in forecasts, for example, so the plan can change, too.
  • Legislative changes may impact strategic plans and budgets as well. It’s important to make sure HR managers are keeping up on these changes and communicating them.


  1. What are some ways an HR manager can keep up on legislative changes? Do a web search and list specific publications that may help keep the HR manager aware of changes.
  2. Why is it important to be able to measure strategic plans? What might happen if you don’t?