1.4 The internal and external environments

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Internal Environment: How does the economy influence HR activities?

Can have a significant impact on HR activities. Strong economy = decrease unemployment + increase wages + competitive recruitment + increase training. Weak economy is the opposite of above. HRM priorities and functions can change depending on the state of the economy.

What is the purpose of a SWOT analysis?

Commonly used to establish a level of understanding needed for a successful plan.

Internal Environment: Define "culture" and identify who shapes an organization's culture.

Culture: Represents an organizations value system. It includes factors such as employees' willingness to work, their ethics, how the organization thinks they should be treated. HR activities normally reflect and articulate corporate culture. In other words, the HR practices chosen for implementation come from a menu of available options that is dictated by HR.

Internal Environment: Organizational size is an important factor in determining ________________.

HR activities. Some exceptions: The larger the organization, the more developed its internal labor market, the less reliant it is on the external labor market.Labor Reliance can be exercised internally. The organization has more discretion determining and selecting HR policies.

Internal Environment: How does international competition influence HR activities?

HR policies and practices changed significantly because corporations were forced to become more competitive due to economic developments around the world. Example: NAFTA.

Internal Environment: How does technology influence an organization's structure?

Organizational structures have become flatter and flatter (a "flat" structure is one that has few managers, or a small management hierarchy.) Technology allows less supervision, work from home. Company restructure in terms of quality and cost>reducing levels>decentralizing.

Define the term "SWOT".

Strengths, Weaknesses, Opportunities, and Threats. This analysis provides the firm actionable direction for competing in the marketplace.

Internal Environment: Define technology.

generally refers to the equipment and knowledge used to produce goods and services. the definition of technology may vary greatly by industry


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