A number of internal and external factors have to be considered when formulating human resource planning.
Share on Facebook Internal and external factors have a huge effect on the success or failure of a business. However, business owners and leaders do have significant influence over internal factors that affect a business, and how they handle these internal factors will have a major impact on the future of their companies.
Leadership Leadership refers to the people in your organization that make all the major decisions regarding financing, budget, sales, marketing, and human resources.
Companies with strong leadership have a clear vision for the future, a plan of how to achieve their goals and a quantifiable way of measuring success. They have also developed the kind of management structure that enables employees to feel empowered, while also meeting production and sales goals.
Weak leadership is like a ship without a rudder that has no direction and is in danger of sinking. Leaders that lack a strong vision and that are unable to properly manage their teams will find it difficult to achieve their goals.
For a company to consistently produce high results, managers must ensure that they are in constant communication with employees and that any problems or dissatisfaction within the rank-and-file is handled in a timely manner.
When employees feel valued and rewarded, they will go above and beyond to maintain a high organizational standard. Mission Statement Do your employees understand why your company exists? In other words, has management communicated the mission statement of your business, which is the underlying reason that you make specific products and offer specific services?
For example, the shoe company Zappos developed a mission statement that it was always about pleasing the customer, no matter what it took.
As a result, Zappos soon became known as one of the best customer service companies in the world. For example, if economists forecast a recession, it could be time to tighten budgets, eliminate some projects, and remain in a holding pattern until things improve.
However, when the economy grows and interest rates are low, that could make it easier for you to obtain low-interest loans to help expand your business.External Factors.
External factors that affect an organization may be political, economic, social or technological. The same internal factors that lead to an organization's success inevitably characterize that organization's relationship to the external environment in .
On the contrary to internal factors, external elements are affecting factors outside and under no control of the company.
Considering the outside environment allows businessmen to take suitable adjustments to their marketing plan to make it more adaptable to the external environment.
Internal and external environmental influences keep management busy behind the scenes. In a world where social media exposes every flaw, companies must adapt in order to compete, becoming transparent, providing effective service and being able to weather outside forces beyond their control.
How Companies Can Reduce Internal and External Business Risk. A company can reduce negative exposure to business risk by identifying internal risks and external risks. Internal Risk Factors. The Internal Analysis of strengths and weaknesses focuses on internal factors that give an organization certain advantages and disadvantages in meeting the needs of its target market.
Strengths refer to core competencies that give the firm an advantage in meeting the needs of its target markets. 2 INTERNAL AND EXTERNAL FACTORS THAT ENCOURAGE OR DISCOURAGE HEALTH-RELEVANT BEHAVIORS INTRODUCTION There are a number of factors that determine the likelihood of engaging in a particular behavior.