Chapter 3 - Environmental Influences on HRM

Question 1

What is Environmental Scanning? Why is it essential?

Answer 1

Environmental scanning is a process of gathering, analyzing, and dispensing information for tactical or strategic purposes.

> HR Strategists need information about their environment in order to exploit the opportunities or cope with threats
A lack of environmental scanning is often what gets organizations into major trouble.
Once successful, there is a tendency for organizations to sit back on their laurels and assume that success will support the status quo.
Managers sometimes forget that constant monitoring of the external environment is essential because an organization does not exist in isolation.

Question 2

What is the purpose of Environmental scanning

Answer 2

Effective utilization of resources
Constant monitoring of resources
Strategy formulation
Identification of threats and opportunities
Useful for the managers
Prediction of future

Question 3

What are 3 approaches to environmental scanning?

Answer 3

Systematic Approach

Ad-hoc Approach

Process Form Approach

Question 4

What is the systematic approach to Env Scanning

Answer 4

Systematic Approach

Information for environmental scanning collected systematically
Information pertaining to business and industry could be collected continuously to monitor changes
Continuous updating necessary not only for strategic management but also for operational activities
In this approach information is collected relating to market, customers, changes in legislation

Question 5

What is the ad-hoc approach to Env Scanning

Answer 5

Ad-hoc Approach

Organizations conduct special surveys and studies to undertake special projects, evaluate existing strategies and devise new strategies
Changes and unforeseen developments may also be investigated

Question 6

What the is the process form approach to Env. Scanning

Answer 6

Process Form Approach

Information used is supplied by govt agencies or private institutions
Secondary data available from external and internal sources may also be used

Question 7

What are 4 Env. Scanning methods?

Answer 7

Scanning - to ID early signals and trends

Monitoring - Systematic approach to following some key indicators

Forecasting - an attempt to project the possible impact of a trend

Assessing - an attempt to describe the impact of the monitored trend

Question 8

What are 4 sources of HR information?

Answer 8

HR professionals rely on many sources of information including:

Publications (Benefits Canada, Harvard Business Review, Canadian Labour law reporter)

Professional associations (Canadian HR planners, Conference Board of Canada)

Conferences/seminars
Professional consultants

It is important for managers to keep up-to-date on organizational trends inside and outside of their industries.

Question 9

What are the top HR trends, according to the centre for executive organizations

Answer 9

Globalization
Mass Customization
Social Media
General Diversity
Open innovations
Personal Technology
Sustainability
Big Data
Gamification

Question 10

What are the top Human Capital challenges, according to conference board of canada)

Answer 10

Leadership Capacity
Employee Engagement
Capacity to respond to rapid change
Changing nature of work and workplace
Labour cost containment

Question 11

What is competitive intelligence?

Answer 11

Business Intelligence is the processes, technologies, and tools that help us change data into information, information into knowledge and knowledge into plans that guide organization

A formal approach to obtain information about your competitors
Information gathered through all these competitive intelligence methods must be subjected to two evaluation questions:
Is the source reliable?
What is the likelihood of the information being correct?

Question 12

What are the 4 steps to scenario based planning?

Answer 12

1. Identify three probable business Scenarios that might play out over the next 5 years. (most desirable, most likely, least desirable.
2. Assess HR readiness or each scenario. Ask: What are the challenges and ID the HR’s ability to respond
3. Challenges – HR’s strengths and weaknesses.
   Assess the likely trends/competitive threats
   Likely threats by rivals; predicted needs of the employees
4. Identify HR initiatives and programs
   Labor shortage of skilled mechanics - joint program with community college

Question 13

What is the challenge to environmental scanning?

Answer 13

Inability to:
Accurately predict the future
Isolate what really is important to HR
Drones delivery, Robots, Driverless cars etc.

Question 14

What are four criteria that have been suggested for ID’ing significant trends

Answer 14

Four Criteria to identify significant trends:

1. Are there ripple effects?
2. How profound are the impacts on the people’ priorities, roles and expectations
3. How large is the impact scope
4. Will the changes endure over time

Question 15

What are the major environmental factors?

Answer 15

Economic climate
 Globalization
 Political and legislative factors
 Technological factors
 Demographic factors
 Social and cultural factors

Question 16

What are elements within the economic climate?

Answer 16

Unemployment rate
 Cost of fuel/commuting
 Strength of the Canadian dollar
 Public debt
 Interest rates
 Gig economy

Question 17

What are elements within the globalization climate?

Answer 17

The growth in flow of trade and financial capital across borders
Affects sovereignty, prosperity, jobs, wages, and social legislation
Growth of emerging economies: India and China

Question 18

What are factors within the political and legal climate?

Answer 18

Provincial and federal governments influence organizations by:
Creating jobs
Emphasizing tax cuts
Providing tax incentives to develop jobs
Increasing job-training opportunities
Creating balanced labor legislation

Question 19

What are technological factors?

Answer 19

> Includes tools, machinery, equipment, and software
Robots replacing humans for repetitive, dangerous tasks
Computer networks and cloud computing make it possible to store and manage unlimited amounts of data.
Social media has influenced how organizations recruit, check references, and manage off-site conduct of their employees
Requires changes, Eliminate lower-level positions, less hierarchy more collaboration, Telecommuting and Electronic monitoring

Question 20

What are relevant demographic factors?

Answer 20

The study of population statistics, including:
> Labor market
> Unemployment rate, geographic migration, graduation rates, and underutilized segments of the society etc.
> Movement of Semi-skilled to high skills, international workers demand increase
> Diversity
E.g. underutilized pool of highly educated minority
Generational differences

Question 21

What are relevant socio-cultural factors?

Answer 21

Right to privacy: Laws and regulations in effect, but still questions as to employer’s moral right to monitor employee activities

Work–life balance: Quality time with families while pursuing a career, desire to have better quality of life: elder care, child care, flextime, telecommuting, reduced hours, part-time hours, job sharing

Contingent workers: Aimed at part-time, seasonal, temporary, and contract employees

Stakeholders: Groups of people who have an interest in the projects, policies, or outcomes of an organization’s decisions, including board of directors, senior management, supervisors, employees, unions

Question 22

What are workforce strategies for the Baby boomer generation?

Answer 22

Communication: Show respect, choose face-to-face

Development and job design: Acknowledge accomplishments, create an open work environment

Recruitment: Use headhunters, advertise in newspaper

Retention: develop solutions to postpone retirement. highlight value and contributions to the company

Question 23

What are workforce strategies for Generation X

Answer 23

Communication: Get to the point, use email generally, but face to face to deal with issues

development and job design: give them space to explore and find solutions. lighten up, work can be fun

Recruitment: Go through social networks. create employee referall programs

Retention: get over the notion of having to pay ones dues. Provide flexible work solutions. Set up clear steps for advancement

Question 24

What are workforce strategies for Generation Y (millennial)

Answer 24

Communication: Orient them quickly. email and instant messaging are preferred

development and job design: provide feedback quickly, challenge them to outline the end game of reach task

Recruitment: Utilize technology (facebook etc. ) allow space for parental input

retention: find them a mentor, allow them to contribute to the community, introduce new opportunities frequently

Question 25

What is the issues priority matrix?

Answer 25

> Used to determine the important trends that may affect an organization
Managers rate the trends from high to low based on:
The probability of these trends actually occurring
And The likely impact of each of these trends on the organization

Question 26

What is a proactive approach to HR?

Answer 26

HR managers are not passive observers; they want to participate and influence the trends

Some organizations will lobby for legislative changes and shape perceptions

Use SWOT analysis to determine impact on organization

Question 27

What are the 3 stages in the environmental analysis process

Answer 27

It is a circular/constant flow between:

Scanning and monitoring the general environment
> PESTEL

Scanning and monitoring the business environment
> Porter five forces
> stakeholders

HR forecasting and assessing
> issue priority
> SWOT
> scenario planning