In business, the role of PESTLE analysis is very important. The PESTLE analysis is a useful tool to understand the “big picture” of the environment in which it is operating and the opportunities and threats found in it. It is originally designed as an environmental business scan; This analysis is an analysis of the external macro-environment in which a company operates. By understanding the environment in which you work (external to your company or department), you can take advantage of opportunities and minimize threats. These are factors that are beyond the control or influence of a business, however, it is important to consider when making product development, business or strategic planning.

A PESTLE analysis is a business measurement tool that analyzes factors external to the organization. It is often used in the strategic SWOT analysis. The PESTLE analysis topic is a framework for reviewing a situation and can be used to review a strategy or situation, company management, marketing plan, or idea.

It is important to clearly identify the topic of a PESTLE analysis (which is a clear objective or exit requirement) because such an analysis is multifaceted in relation to a particular business unit or proposal; If you dilute the approach, it will produce an unclear image, so be clear about the situation and the perspective that PESTLE uses to analyze.

PESTLE analysis in a human resources department or other internal function:

While PEST or PESTLE analysis is primarily aimed at visualizing an organization’s external environment, many HR courses ask students to use the PEST or PESTLE analysis model to analyze their own function. In this context, we must imagine that the department HR in an organization in its own right and look outward. Factors that include in your analysis may include the following:

1. Economic
i. What is the budget position of the department?
ii. Is there more money available?
iii. Is it likely that our customers spend more or less money on the services we offer?
iv. What is happening with the financial statement of the organization?
v. Interest rates
vi. Inflation
vii. Salary trends in the sector

2. Sociological
i. Other departmental attitudes towards HR
ii. Population changes (age profile)
iii. Education
iv. Fashions
v. Diversity
vi. Immigration/emigration
vii. Health
viii. Standard of living
ix. Housing trends
x. Fashion and role models
xi. Age profile
xii. Attitudes towards the race

3. Environmental
i. Staff morale
ii. Staff commitment
iii. Need to reduce storage needs
iv. Management attitudes (within the department/function)
v. Organizational culture

4. Political
i. What is the culture of the organization?
ii. How is the HR function seen by other functions?
iii. Who are the political HR champions (or their adversaries)?
iv. Shareholder opinions

5. Technological
i. What changes may come our way?
ii. What new technologies/systems?
iii. How do we record attendance, performance? How could this change?
iv. Use and promotion of homework?
v. Communications technologies
vi. Technology changes that will increase/reduce the need for recruitment
vii. Changes in human resources software

6. Legal
i. What is happening in our sector that will affect what we do?
ii. Minimum wage
iii. working time
iv. Food products
v. Children under 18 working
vi. Occupational/industrial training, etc.
vii. What changes will affect the services of the organization?

Also read: Types of EnvironmentMicro EnvironmentMacro EnvironmentSocio-Cultural EnvironmentRecent developments in economic environmentEnvironmental Analysis, ETOP (Environmental Technology Opportunities Portal)


Leave a Reply

Your email address will not be published. Required fields are marked *