Environmental Scanning – systematic monitoring of trends affecting the organization
Environment – anything outside the organization’s boundaries
The analysis of the external environment consists of these stages:
1. Scanning: An attempt to identify early signals of changes and trends in the
environment. This information is ambiguous, incomplete and unconnected.
2. Monitoring: A systematic approach to following some key indicators that may
affect the organization.
● Absenteeism rate in the working population due to a certain type of
3. Forecasting: After monitoring a trend, an attempt to project the possible impact
on the organization.
4. Assessing: An attempt to describe the impact of the monitored trend on the
organization, and make a judgement of the probability of each of several possible
● What would the impact of a trend in the increase in health
● A food manufacturer might lower the amount of fat and cholesterol in
● An organization, eager to be seen as a best employer, might change
the menu in the cafeteria, as well as introduce physical fitness
activities on site.
Sources of Information:
Newspapers, business publications, HR magazines, journals,
● Professional Associations
● Conferences, Seminars and Workshops
Annual conferences held by HR associations
● Professional Consultants
Hire consultants to research or interpret potential trends Economic Factors
Economic climate: unemployment rate, oil price, currency exchange rate, public
debt, interest rate, etc.
Globalization – growth in flows of trade and financial capital across borders
Demographics/Labour market: age, gender, family status, education, etc.
Political and Legislative Factors
aspects of HRM)