Square International Company is a cleaning and maintenance agency in the UK. This case explores four major external influences affecting human resource management (HRM) that it must consider in its plans to expand. Along with this, employee motivation despite the recent recession-induced layoffs are discussed below.
2. PESTLE ANALYSIS
Successfully implementing necessary labor changes during a business expansion requires an understanding of the environment an organization operates in. The PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis is a powerful assessment tool for external factors that are out of Square International Company’s direct control. Best used with the SWOT (Strengths, Weaknesses, …show more content…
Rotation or enrichment of jobs increases the intrinsic factors of work – such as achievement, responsibility, and growth – and hence, has a higher probability of motivating employees. Both methods also enable management to fill vacancies without much difficulty, be more flexible with timetables, and adaptive to changes. Additionally, evidence supporting improved performance in manufacturing settings due to job rotation is especially relevant to Square International Company. Yet, drawbacks such as increase in training costs and disruptions in the workflow related to job rotation, as well as the ineffectiveness of job enrichment caused by infrequent feedback and focus on past problems must also be considered.
Altering work arrangements (table 3.1.2) with flextime, job sharing or telecommuting is another approach to motivation. Increased productivity and reduced expenses in relation to overtime pay and office-space rent are claimed benefits of flextime and telecommuting. Furthermore, the flexibility of all three alternatives is indirectly addressed by the expectancy theory in the importance of the rewards-personal goals relationship. Management, however, has to determine the compatibility of the arrangements with jobs, and individual employees (Robbin and Judge, …show more content…
As Square International Company faces a tighter budget resulting from the recession, the attractiveness of non-financial incentives increases. There are various ways of acknowledging employees’ efforts – from a private e-mail to team pizza parties in celebration of team successes. Praising a behavior immediately following it is likely to encourage its repetition. This is congruous with the reinforcement theory. Provided that managers refrain from manipulating the system and subjecting it to favoritism, employee recognition is an effective and low-cost means of stimulating performance (Robbin and Judge,
In this segment we will discuss about the external forces of the company that are not controllable (Keegan and Keegan, 1989). PESTLE analysis will be an effective tool here to analyze the factors. 2.1.1 PESTLE Analysis PESTLE is a very effective macro environmental tool containing six important factor. Political Factors In India political factor is very vulnerable.
Abstract Chipotle Mexican Grill is a well-known company that deals with fast food and has made significant and distinctive progress compared to other companies in the fast food industry. The company not only prepares food in front of customers but also makes sure that food is made with integrity. The integrity is enhanced by finding, evaluating, and choosing the right ingredients, which are from animals, farmers, and the environment (chipotle.com). These are the principles that serve to direct and guide the organization and help position it as a leader in the industry.
Although motivating employees can be a challenge, a number of theories about motivation at work can be used as a basis for creating practices, procedures and processes to affect employee
One of the most commonly used is the PESTLE Analysis which is based on the investigation of the political, economic, social, technological, legal, and ecological factors that surround the country. The analysis aim is to evaluate the aspects that could directly affect the company during its time in a foreign country since these are the factors that could come into play that some may not consider before. This is important because a better understanding of the country’s environment (including political, economic, and cultural aspects) the greater the probability of the product being a success and there is a less risk involved. Yet this among the other aspects previously mentioned form part of a much larger process that the company must
Part A. The primary externals influences to Starbucks PESTEL describes a framework of macro-environmental factors used in the environmental factors component of strategic management. PESTEL analysis includes some several factors: political, economic, social, technological, legal and environmental factors. This report analyzes the factors which have main impact on Starbucks. 1.
Reasons for choose this manager – ZARA HRM’s importance has grown dramatically in the last two decades. This new importance stems from increased legal complexities and the recognition that human resources are a valuable means for improving productivity, the awareness today of the costs associated with poor human resource management. The report will discuss the ZARA company about the human resource. ZARA is a subsidiary of the Spanish Inditex group, which is not only the clothing brand, but also the franchise ZARA brand clothing retail chain brand. Inditex is ranked first in Spain, the world's third largest clothing retailer, in 2005 its global sales of EUR 6 billion 741 million, sales of up to 429 million, net profit of $803 million.
Introduction In today’s business, maximization of profits represents the principal feature of business operations. In order to achieve the highest profits, companies have to manage their human resources effectively. Thus, employee’s motivation has emerged as a critical component, it holds the key to the success of a company. Therefore, human resource managers must motivate their employees to let them perform to their best and achieve the organizational goals.
INTRODUCTION Human resource management is the strategic approach to the management of an organization 's most valued assets - the people working there who individually and collectively contribute to the achievement of the goals of the business (Armstrong, M., 2006). In other words, human resource management is a to work with employees, and for the employees, to help them solve their problems. Therefore, human resource is a complicate department, as they deal with people who already work there, they also deal with several issues which happen among new employees, such as recruitment, selection and so on. Nowadays, employee retention becomes one of the most significant issue in the organizations, and managers are aiming to find the best employees
However, a cheaper alternative would be to sincerely hold workers’ appreciation day every year. Workers of exemplary performance would receive employee benefits in the form of paid leave or extra percentage of wages for the year. A more effective method is to tie the workers’ wages with the performance of the company. Showing appreciations to the workers would effectively build the motivations of the workers. While tying their wages with the company’s performance would improve their efficiency.
Motivation is essential for a group as well as an organization. In the eyes of the leader of organization McDonald’s, authorizing and inspiring staff members to do the best in their job and they’re capable of helps create job satisfaction, lowering gross revenue in an industry that has a standing for stimulating its employees. In addition, a glad, stable workforce not just conveys better customer service; it is likewise more compelling at building deals and attracting repeat business. There are five concentrate benefits of employee motivation which Mc Donald’s approached at: 1. Improved Productivity 2.
PESTEL ANALYSIS Pestel is a strategic analysis tool used by organizations to scan the macro-environment in which they operates, helps to identify external factors that can affect the organization's business activities and performance (Gockeln 2014). Macro-environmental factors are those that affect clothing industry and the industry have no control over rather than adapting to it. By so doing, it gives ability to differentiate themselves from potential competitors and sustain performance. Table 2 depicted, (PESTEL) Political, Economic, Social/ Cultural, Technological, Environmental and Legal external factors. Political factors: these are examined from the political stability point of view, which covers government policy intervention in the economy, deregulation, taxation changes, as well as the attitude of political parties on the government policy.
Francis Aguilar (1967) is the first known reference to the origin of the PESTEL analysis. In his study known as Scanning the Business Environment, he studied the environmental factors that affect business environment and come up with the first acronym ‘ETPS’ which meant the Economic, Technical, Political and social factors (Aguilar, 1967). Later Arnold Brown (1967) focused on the study and came up with a new perspective towards the study of social-technical, economic, political, and ecological (STEPE) factors. In 1980, Porter among other authors scanned the business environment and came up with the current acronym PESTEL meaning political, economic, social, technological, legal, and environmental factors (FME, 2013). According to Collins (1997),
PESTLE ANALYSIS OF INDIA-BHP BILLITON (IRON ORE, COAL, COPPER AND URANIUM COMPANY) A PESTLE analysis is basically a framework that categorizes environmental influences as Political, fiscal, Social and Technological forces. The analysis examines the impact of each of these explanations (and their interplay with every different) on the business. Philip Kotler claims that PESTLE evaluation is a useful strategic tool for understanding market progress or decline, business position, advantage and path for operations. Political causes affecting trade specially revolve round taxes, import and export tariffs, environmental and labor legal guidelines, abilities subsidies, and the steadiness of a given operational area.
PESTLE analysis is include of political, economic, social, technological, legal and environmental factors. PESTLE is a business tool that used by companies to track and analyse the macro environment in which the company operate. This tool is very useful which help in overall growth and development of organization after learning from the past mistake and working for future. The first factor is political factor which include such as law of land, taxation policies, rules and regulation, trade restriction and so on.