Topics: Human resource management, Strategic management, Management Pages: 10 (2106 words) Published: April 30, 2013
PEST Analysis in strategic Human Resources Planning Hamid Reza Qasemi Islamic Azad University of Iran, Aligoodarz Branch

Abstract: The present complex world require as far as is feasible, it consider impact of important factors related to organizations in strategic planning. The strategic planning of business includes all functional subdivisions and forwards them in a united direction. One of these subsystems is human resource management. Strategic human resource management comes after the strategic planning, and followed by strategic human resource planning as a major activity in SHRM. In strategic human resource planning, it can use different analytical methods and techniques that one of them is PEST analysis. This paper introduces how to apply it in a new manner. This manner is result of practical case of application of SHRP in an organization.

Key words: PEST Analysis/ Strategic Human Resource Planning/ Strategic Human resource Management.

1. Introduction: Planning is about change and change management is a difficult. Rise and fall of strategic planning indicates organizations find tools to help to navigate organization's ship into the uncertain water of change. Success of a program is difficult to assess, as changing objectives and goals and the results are not simply measurable (Martinez: 1999). The organizations always are attempting to coordinate their resources, feasibilities, tools and capital in certain framework for to achieve organizational goals. In this attempt should be identify the role of each component. The most important component of the organization is human resource and appropriate use of its capabilities and competencies, a certain strategic planning is required that called "strategic human resources planning", and is one of the key discusses of human resource management. Strategic human resource planning, as a matter of fact, is interpretation of goals and future plans of the organization in form of needed type and number of human resource.


In this paper is introducing how to use PEST method that is result of a research, in strategic human resource planning.

2. Strategic human resource management (SHRM): HR is the most important component of organizations. Without right people in right positions, is not making any strategy in other areas of organizational section. This cognition leaded to develop context of strategic human resource management. SHRM is strategic view to HR so that can be reflecting organization strategies in HR activities. SHRM attempts to direct HR in path of achieving organization goals and strategies, and embeds these in different activities and operations of HR. SHRM can conduct the organization HRM activities, with a systematic approach, toward achieving strategic management. SHRM has different objectives but the most basic one is to determine HR strategies in different areas such as job analysis, job design, HRP, recruitment, compensation, training, job evaluation, performance evaluation, and termination. If we assume HRM as a system, the elements of this system can be as figure (1).

Input 1. Job analysis 2. Job design 3. HRP 4. Recruitment 5. Selection

Retain Process
6. Training & Development


12. Termination:
7. Compensation 8. Job assessment 9. Performance Appraisal 10. Wealth & safety 11. Labor relation


Retirement Transfer Resignation Dismissal Death Discharge & …


Figure (1): HRM System


As shown in figure (1), HRM includes twelve basic elements. If it can be make some strategies for these elements by strategic management techniques and based on internal and external analysis of organizational environment, this action is called SHRM. SHRM stages can be design in figure (2).

Strategic Managementُ

Determining Mission

Determining Long-run Goals
External analysis Of HRMS Internal Analysis Of HRMS

Determining Strengths, Weaknesses, Opportunities & Threats of HRMS...
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