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an external environmental scan to review its customers,
markets and competitors, and to forecast to external
opportunities and threats.
Major areas to consider during an external scan include
economic, demographic, political, social and technological
trends. An analysis of customers, markets and competitors
is used to determine how the market is changing, to predict
who the future customers will be and to analyze
competitors in the marketplace.
When conducting a customer/market/
which HR can strategically contribute to organizations. The competitor analysis, HR professionals should
HR alignment process is often driven by workforce answer the following questions like
composition issues. Although every organization's particular 1) What business are we doing?
strategic plan is unique, the demographics and other 2) What is approach and trends in the world which are
characteristics of the available workforce have a major been followed in sort of business, which we are doing?
effect on the way businesses are staffed. In turn, the way
organizations are staffed has a significant impact on the 3) What business strategies can be changed or needs to
execution of the organization's strategy. be changed?
4) What are our resources?
HR professionals should monitor and respond 5) What are our core competencies?
accordingly to factors that may affect workforce 6) Who all are our competitors?
composition, including the following factors mainly:
1) The Age Factor: The age of the existing employees, 7) How will we compete?
the age of the available workforce and the patterns of
retirement for older workers and for the entrance of Setting HR objective as a part of
younger workers can significantly affect workforce strategic planning -
availability.
Setting strategic objectives is most important part of the
2) Current economic Scenario: Like Unemployment rates, strategic planning process. Therefore, these objectives must
natural disasters and political changes can also have an be aligned with the organization's mission, vision and overall
impact the availability of workers. strategy. Strategic objectives will vary from organization to
3) Diversification: Key aspect of globalization that will organization.
affect almost all organizations is the increasing diversity To identify whether strategic objectives lays a
of the workforce. Another aspect of globalization is the
economic incentive to outsource labor and production solid foundation for success, HR should consider
activities to wherever such costs are lower. A third, and the following questions before formulating any
related, aspect is immigration, both legal and illegal, in plan or strategy:
the United States and abroad.
Y Have we communicated the benefits of obtaining the
defined objectives?
SWOT analysis as a strategic tool of
Y Are the strategic objectives relevant to the
decision making in HR - organization's position in the external market? For
Assessment of the current situation or scenario can be example, do they consider competitor positions,
understood for strategic decision making by conducting a organizational size and financial strength?
SWOT analysis. This analysis includes an internal assessment Y Do the strategic objectives recognize the organization's
of the organization's capabilities and limitations as well as strengths and weaknesses?
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