The report is based on analyzing the STEEPLE model which helps in evaluating and determining the external aspects that directly impact on strategic choices in an organisation. The company examine this model and evaluate its influence on the business functions properly. Such factors assist in analysing the external impact on organisation regulations and strategic decisions effectively. HRM professionals work for developing strategy which helps in gaining high growth and attain potential customers from the international market.
Using the STEEPLE model, evaluate the external factors that affect strategic choices in organisations.
STEEPLE model is the advanced technology which helps in deals with macro-environmental external factors that are direct impacts on business operations and its functions effectively. It is a simple and famous strategic management tool that helps in analysing and evaluating the external settings of an organisation. This is mainly based on the PEST analysis technique and helps in evaluating external factors. STEEPLE method is important for business is to understand the external factors and increase the value chain.
Social – In the social area, the culture medications and market research are taken into consideration, the social factor is important for analysing the current trends which need to be adopted by the company for increasing their growth and development level. STEEPLE evaluates the marketing strategies faults and provides new ideas. This factor includes cultural attributes and demographic(Turner, 2018). It helps in evaluating the strategic choice of the business based on this they gain success. The method considers the growth of population, attitude of consumer, age, inflation rates, traditions and lifestyle changes and so more. It is important for the company is to adopt current trends which enhance the growth and gain the attention of customers towards their services.
Technological –In the current time, technology is becoming the main part of everyone life. Most of the companies regulate their business operations. The changes and alterations in production methods can provide new opportunities and improve the profit range of the company which assist in increasing their growth level(Trullen, et. al., 2017). This is an effective factor which is used to eliminate the risks to enter a new sector and increase the efficiency of the manufacturing level. It provides great strategic choice to the company for enhancement of success.
Economic –An organisation can measure and evaluate the economic condition by weighting the current inflation level, global trading, growth rate and unemployment. For example, if a company settled in nature which might be suffering from recession, then small alterations should be developed in the plan of capital investment. It is that factor which directly affects the buying power of the customers and it impacts business profitability. The economic growth rate is going to reduce due to coronavirus in these days and it creates a major impact on country GDP.
Environmental –It is that aspect which assesses the positive and negative influence on the company. It is important for an organisation is to develop and produce environment-friendly products and focus on the cleaning process. This helps in safe the environment and surroundings. If a company does not follow laws and regulations related to the environment so this will create a negative impact on their operations and its functions. Such factors consider in the STEEPLE analysis involves rules for environment protection, management of wastage and disposal, energy-efficient technology and air pollution.
Political –This factor directly or indirectly impacts the strategic choice of the company. There are various government policies, changes and rules which can influence business functions. Such changes can associate to the legal, social and economic issues. Government intervention disturbs the business activities and through which the organisation does not smoothly run their operations(Tsui, et. al., 2017). If any business does not follow government made rules and laws so they cannot effectively regulate their company operations in the market place.
Legal –Such factors are mainly dealt with official complications and issues. To reduces this legal problem, the company need to evaluate and analyse the new regulations and policies to make sure about compliance and process of business.
Ethical–In this, social values are playing a vital role as the ethical aspects within an organisation which regulate their behavior. Ethical components evaluate what is right or wrong and based on making the proper decision for the welfare of the company. The general ethical factors involve culture, tendency, honesty, morality and behavior of people. The firm also works towards society and provide support to needy people. This will increase the goodwill and reputation of the company.
What will be the likely contribution of HRM professionals to developing a future strategy?
HRM professionals are the crucial parts of the organization who play a very important role in looking over an important component for the successful business which is thriving for the productive working force for the organization. The HRM sees the employees as assets to the organization and not their liability. The talented workforce helps in overcoming the issues and troubles for the upcoming future aspects of the organization. The HRM professionals contribute to the business strategy by suggesting the way to manage the people in business strategically as resources for the future development of the organization(Simões, et. al., 2019). As per the crisis of COVID-19, every business organization in the whole world is striving for their existence in the market place. In this crucial period for organizations, HRM professionals are playing an important role in the development of strategies for coping with the current situation. The HRM professionals are hiring and recruiting the fresh talent which contains the specific skill set which is crucially required for the organization’s future growth and development. The HRM also contributes to the coordination between the management and the employees in fulfilling the given tasks for the benefits of the future development strategies of the organization.
The HRM professionals contribute in the managing and preparing for future development strategies for the company to cope with the situation of crisis with the help of the employee’s task force in the company which are being controlled by the HRM professionals. The HRM professionals also contribute to the developing of future skills which may be required by the organization for the future development process for the business activities. The employee’s skills are needed to be developed and modified by them for the future aspects of the company. The HRM professionals assign different kinds of duties for the employees to adapt to the various environment of the business activities. The flexibility in the adaptation of the organization into various environments will be proved to help execute strategically operations for the future development of the company after the COVID-19 crisis. The HRM professionals will manage the employee’s engagement in the organization’s various developmental strategies in which they are involved in the strategical development of the organization.
The HRM professionals help the organization in building loyalty and improving the commitment level in the employees of the organization. This will help in the enhancement of employee engagement which will eventually help in better execution of the developmental strategies which are being made by the HRM professionals and managers of the organization. Employees are the assets for the organizations and their role in the development of the organization is very important. The HRM professionals help the organization in managing these assets for the company’s future growth and development by using these assets as a talented workforce for strategy implementation(Liu, et. al., 2019). The HRM professionals help in the maintaining and building of talent pipeline which will provide the organization with a competitive advantage in the market place. The future strategy for the organization after the COVID-19 crisis will involve competitive advantages and benefit for the organization through the working force of the company. The HRM professionals make the employees stay in the organization with a high level of commitment towards the future development of the company. The HRM also involves in increasing the competitive power in the employees of the organization which will motivate the employees to give their best in every task assigned to them and work for the future developmental growth and benefits of the organization.
What key HR policies and programes might aid economic recovery?
The situations which are being faced by the whole world are the situation of the downturn in the economy of the various organizations and whole countries are dealing with the situation of recession. There are various kinds of key HR policies and procedures which can be used or might aid in the economic recovery of the organization. The COVID-19 has resulted in the lockdown for a long period in various organizations of the world. The international economic impact of coronavirus is significant(Jiang, et. al., 2019). The government directed “lockdown” policy since the WHO declared the novel COVID 19 outbreak a pandemic. In this time, most of the companies are relying on their HR teams to assist them in navigating the changes and organisation without internal HR divisions’ still face critical issue while developing HR policy. The economic graph is getting down due to the loss in work and projects during the lockdown period. Now it is the time to recover the organization’s losses of the economy with various means. The HR policies and programmers might be able to aid the economic recovery of the organizations.
The HR policies for stopping the employees to leave the organization due to fewer payrolls in the period of crisis will be proved to be helpful in the economic recovery. In this policy, the employees will work overtime for the development of the organization in the economic crisis in the organization. This will ensure the economic development which will help in the economic recovery of the company(Gubbins, et. al., 2016).HR can also bring the policies related to the cutting of the employee’s salary for a short period and then give them benefits after the economic recovery of the organization. This policy will be engaged by the trust of the employees in the organization and the HRM professionals of the company. This way the company can recover the economic crisis with the help of the talented working staffs which will work in the direction of gaining their extra benefits after the economic recovery. These policies and procedures can help aid the economic recovery of the organization.
As per the COVID-19 crisis in the whole world, the HR professional need to introduce the policies and procedures which will keep the employees intact with the organization working business policies. The employee’s engagement with the organization will help in the economic recovery of the company’s future development strategies. The HR policies and programs will help in the engagement of the employees with the organization’s future developmental strategies to gain a competitive advantage in the market place. Thus these policies and strategies might help gain competitive advantages and economic recovery of the organization which will help the organization in coping with the crisis of Covid-19.
Remote work policy involves government forced to the office closure and societies needs to give quarantine guidance; COVID 19 has brought remote work to the forefront of HR policies. There are many companies which design and develop professional believes that this time all the employees need to do work from home that will properly change the workplace landscape(Ghauri, et. al., 2018). It has been analysed that many of the firms are unprepared for long term shift to the remote working facility and it is not a functional role that is developed to gain success in performing virtual work. It is essential to outline how the company manage and maintain the WFH shift and evaluate the success level. In this time, HR managers focus on providing good advice to companies regarding how to change their working approach and regulate their business smoothly.
From the above-described report, it can be concluded that external factors directly impact on business operations and its functions. For this, they are focus on analysing whole market place and adopt required changes that are important for smoothly running of company activities. In this, the contribution of HRM professionals to developing future strategy also described. Some key policies help in maintain and manage the economy in a better manner is discussed as well.
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