Siemens : Meeting Global & Local Needs

These factors create certain expectations and requirements for organizations, which in turns determine the organization's direction and strategy. Whereas internal environment is made-up of several internal subsystems. Internal subsystems work together systematically and drive the organization in the direction which is in conformity to external environment demands; thereby making the organization effective and a good fit with external environment. (McShane & Steen, 2012, p.6)

Internal environment are SW which stands for strength and weakness, actually analysis of internal organization and external environment OT stands f opportunities and threats

Wright and McMahan (1994) define strategic HRM as “the pattern of planned Human Resource deployments and activities intended to enable the organisation to achieve its goals.” A HR function should impact the success of an organisation; a policy must remain current and suitable to both the internal and external environment. Ulrich and Lake (1990) affirm, ‘HRM systems can be the source of organisational capabilities that allow organisations to learn and capitalise on new opportunities.’

The CIPD HRPM is a developmental tool that sets out activities, behaviours and guidelines to become a successful HR Professional. Without a Human Resources team, many companies would fall apart. By HR professionals following the guidelines set by the profession map, this would assure that any organisation would be sustainable and successful.

All business needs to take action which helps them keep good position on the market. Before taken any action analysis has to be made. Answers and data which were obtained during analysis can help chose strategies, which help achieve objectives.

Siemens is a German global conglomerate corporation, based in Munich, Germany. Europe’s largest technology conglomerate has been founded in 1847. It is specialized in electrical engineering and electronics. (Siemens, 2015). Siemens is one of the largest pioneers in producing energy and resource-reservations technologies. Siemens is a leading supplier of systems for power generation and transmission as well as medical diagnosis. Siemens operates in around 190 countries and generally 285 production facilities. Siemens aims to become a leader in climate change reduction. Werner Von Siemens, 1852 (former of the company) confirmed that their aim and objective must always be higher than their strength can achieve, because only then will they be able to exert the latter to the fullest. (Siemens, Annual report, 2011)

In this term of our discussion we’re talking about business environment. It’s like an overview of the whole business environment. Simply environment of a business means the external forces including the business decisions. They can be forces of economic, social, political and technological factors.

External environmental factors are the macro environment affecting a business; they are factors outside the company and which they have no control over (Kotler & Armstrong, n.d.) these external factors bring about impacts to the company thus a company should always be prepared to react.

An analysis of the external environment includes the factors in a business’s external environment about a business's industry, competition, and political and social environments, and affects the firm’s strategy (Aaker, 2001).

An organisation’s domain is its chosen environmental field of action. It is the territory that the organisation stakes out for itself with regard to products, services and markets served. This is also strongly affected by the organisation’s external environment. The external environment incorporates all the elements that exist outside the boundary of the organisation and have the potential to affect all or part of the organisation.

The internal environment consists of the inherent competencies of the firm and the structure of its internal systems and processes. It is imperative for the organization to conduct an internal analysis

2. Environmental monitoring. Examining the macro, industrial, competitive, and internal environments will produce the reasoning and ongoing analysis as to why this plan will support the senior leaders and new employees achieve their best performance.

To ensure a high probability of success in the implementation of strategic human resource management, the HRM function needs to be truly strategic in its orientation.

More firms’ business strategy can be better realized using the integrative model of HRM. Both employees and firms’ aspirations can be met if the right strategy is used. . HR professionals must be well trained to implement this strategy.

External environment refers to external aspects of the surroundings of business enterprise, which have influence on the functioning of business. The external environment can provide both facilitating and inhibiting influences on organizational performance. Key dimension of the external environment principally consists of a micro environment and a macro environment.