Name two external factors that can influence people management in a business.

• A. Internal policies
• B. Economic conditions, legislation/employment law, labour market conditions, cultural norms
• C. Company branding
• D. Office layout

Answer: (B)

External factors outside a business shape how managers treat people. Things like economic conditions, employment law, labour market conditions, and cultural norms all influence decisions on recruitment, pay, working hours, training, and employee relations. This makes the option that lists these factors the best answer because it captures forces that come from outside the company and force HR practices to adapt.

Internal elements such as internal policies, branding, and office layout are decisions made inside the business and don’t come from outside, so they don’t illustrate external influences on people management. For example, a booming economy might enable hiring, while new employment laws could require changes to contracts; a tight labour market might push up wages or change recruitment strategies, and cultural norms can affect flexible working or holiday patterns.