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Redskinsfan
PEST.pdf
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LO 1
What is the first thing you think about when you read the word “PEST”?
Chapter 15: International Human Resources Management: 15.1 Analyzing Your International Environment Book Title: Managing Human Resources Printed By: Cedric Turner ([email protected]) © 2016 Cengage Learning, Cengage Learning
15.1 Analyzing Your International Environment In Chapter 1, we highlighted some of the global trends affecting human resource management. The global environment of today is much different than it was 10 years ago. Because political, economic, social, and technological conditions are constantly shifting across the world, how people are managed in those changing environments will shift as well. To systematically help companies manage in the global environment, political, economic, sociocultural, and technological (PEST) analysis acts as an audit of a company’s environmental influences to help it determine its strategy and HR response. On your own you may not be able to change these environmental factors, but it is important for you to understand what they are so you can take advantage of opportunities and steer clear of threats found within the different country environments in which your company may operate.
Conducting a PEST analysis entails scanning different contextual environments to understand the long-term trends and how they might impact a company. As an HR manager, PEST analyses can help you to
spot business or personnel opportunities, and it gives you advanced warning of threats,
spot trends in the business environment so you can proactively adapt to these changes,
avoid implementing HR practices in a particular country where they may fail, and
break free of old habits and assumptions about how people should be managed to help bring about innovative ideas for the entire company.
To conduct a PEST analysis, you should first decide upon the appropriate environmental factors that need to be considered and assessed. See Table 1 for a list of factors. Next, you should assess how these factors affect your company’s international operations. Finally, based on these PEST factors and how your company forms its international operations, you should develop the appropriate HR practices in the appropriate locations and for the appropriate employees. Below, we begin by showing you how to perform a PEST analysis— something completely different from an analysis of issues you may be facing with household insects and rodents.
5/26/2020 Print Preview
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Chapter 15: International Human Resources Management: 15.1 Analyzing Your International Environment Book Title: Managing Human Resources Printed By: Cedric Turner ([email protected]) © 2016 Cengage Learning, Cengage Learning
© 2020 Cengage Learning Inc. All rights reserved. No part of this work may by reproduced or used in any form or by any means - graphic, electronic, or mechanical, or in any other manner - without the written permission of the copyright holder.
