Question

In recent years, the environment in which organisations operate has been turbulent. People professionals have a key role in supporting and enabling the organisation to achieve its goals at time of greater or lesser stability. To ensure the people team have sufficient knowledge and understanding to do this, your manager has decided the team should have good knowledge of the external business environment, the organisation’s goals, its products/services and customers, organisational culture, and the importance of change management. Your manager has asked you to undertake some research, then share your learning with the rest of the team through an information sheet.

Your information sheet can be based on your own organisation or one(s) that you are familiar with, and should include the following:

▪ An examination of the key external influences impacting or likely to impact the organisation’s activities. (AC 1.1)
▪ A discussion of the organisation’s business goals and why it is important for organisations to plan for how they will achieve these. (AC 1.2)
▪ A discussion of the organisation’s products and/or services and main customers. (AC 1.3)
▪ A short review of different technologies available to people professionals and how these can be, or are, used to improve working practices and collaboration. You might consider for example, technologies relating to communications, information sharing, record keeping, learning, wellbeing, productivity, or security. (AC 1.4)
▪ What is meant by organisational culture and why it is important to foster an appropriate and effective workplace culture. (AC 2.1)
▪ Howorganisationsarewholesystems,inwhichdifferentareasandaspectssuchasstructure,systems and culture, are all inter-related, and how people professionals work and actions could impact elsewhere in the organisation. (AC 2.2)
▪ Why it is important that organisational change is planned, and effectively managed. (AC 3.1)
▪ The nature and importance of different roles that can be played by people practice professionals, in relation to change agendas. You might consider roles such as: gatekeeper, champion, facilitator, critical friend or record-keeper. (AC 3.2)
▪ How organisational change can impact people in different ways, such as changing their role or status or financial situation, and the different ways people may respond to change. (AC 3.3)

Solution

Examine the key external influences that impact on business environments. (AC1.1) If you use secondary sources, you should include your short references in the narrative here. Wordcount: Approximately 300 words

Environmental scanning is a process where an organization identifies and assesses external factors and trends that could impact its strategy and operations. It helps organizations to adapt to market changes, identify opportunities and manage risks. HR uses this to develop a people strategy that supports the organizational system. The Ministry of National Guard Health Affairs (MNGHA) is an example of an organization that uses environmental scanning to identify and assess external factors and trends that could affect its strategy and operations. This helps the organization to stay competitive, identify opportunities and manage risks in the rapidly changing VUCA environment.

PESTEL Analysis

Tools such as PESTLE to identify current and specific external influences that may impact its strategy and operations in the Ministry of National Guard Health Affairs (MNGHA). For example: Political: Changes in government policies, such as healthcare reforms or changes to funding models, can have a significant impact on the MNGHA. Political instability or changes in the regulatory environment can also affect the organization’s operations.

Economic: Economic conditions, such as inflation or exchange rate fluctuations, can affect the MNGHA’s ability to purchase medical supplies or attract investment for new initiatives. Changes in consumer spending patterns can also impact demand for healthcare services.
Sociocultural: The growing demand for quality, accessible, and affordable healthcare services will likely impact the MNGHA’s operations. Demographic shifts, such as an aging population, may also affect demand for certain healthcare services.

Technological: The rapid pace of technological change in the healthcare sector will likely impact the MNGHA. For example, the increasing use of telemedicine and e-health technologies may change how healthcare services are delivered.

Legal: Changes to healthcare laws, such as privacy or intellectual property laws, can impact the MNGHA’s operations. The organization must comply with a complex and ever-changing legal landscape, which can be challenging.

Environmental: Environmental factors, such as the emergence of new infectious diseases, can significantly impact the MNGHA. The COVID-19 pandemic is a recent example of this. MNGHA must know and respond to the external factors affecting its operations. By regularly monitoring the PESTLE factors, the organization can ensure it remains competitive and responsive to changing conditions in the healthcare sector.

The economic and social environments play a crucial role in shaping an organization’s activities and business environment.

Economic environment:

Changes in GDP lead to a decrease in consumer spending, which can negatively impact the sales and revenue of an organization. High inflation rates can increase the cost of production and reduce consumer purchasing power, which can hurt an organization’s profitability. Fluctuations in exchange rates can affect an organization’s ability to trade with other countries and its competitiveness in international markets.

Social environment:
Changes in customer preferences: Organizations must stay attuned to customer preferences, as these can dictate which products and services are in demand. For example, the shift towards more health-conscious and eco-friendly products in MNGHA can impact the sales of certain products and services.
Demographic shifts: According to Business Jargons, 2017, changes in the age, gender, ethnicity, and other demographic characteristics of the population can influence consumer behaviour and buying patterns.

Discuss organisational goals and why it is important for organisations to plan. (AC1.2) If you use secondary sources, you should include your short references in the narrative here. Wordcount: Approximately 300 words

Every organization needs a mission and measurable goals. Goals define the “what” and “how” of an organization’s mission. Human resource specialists must comprehend and engage in the institution’s planning and goal-setting process to provide meaningful insights that impact executives’ decisions. Business goals are explicit and time-bound. It guides decision-making and service provision by outlining the organization’s goals. As evidenced by Johnson, 2017 specific objectives are vital to an organization’s strategy and assist in aligning employees’ efforts.

The Ministry of National Guard Health Affairs (MNGHA) has two specific business goals. The first is to improve patient satisfaction and quality of care by making their services more accessible and efficient (Ministry of National Guard Health Affairs (MNG-ha) | LinkedIn, n.d.). This can be achieved by utilizing new technologies such as telemedical and investing in training and development for their medical staff. The second goal of MNGHA is to increase its financial sustainability by diversifying its sources of revenue. This can be done by exploring new partnerships with private healthcare providers and leveraging their government funding to secure additional resources.

According to BDC, n.d, planning for the goals is essential as it allows an organization to have a clear direction and focus in its efforts. By improving patient satisfaction and quality of care and increasing its financial sustainability, MNGHA can ensure that its services are of the highest quality and that they have the resources to continue to provide these services in the future. Planning also gives MNGHA a clear roadmap for achieving its goals and ensures they remain competitive and thriving in the ever-changing business environment. With proper planning, MNGHA could take advantage of new opportunities and would be at risk of stagnating and losing out to competitors. As evidenced by Fredman, 2017, the goals will be achieved by utilizing new technologies, such as telemedicine, investing in training and development for medical staff, exploring new partnerships, and leveraging government funding.

Discuss the products and/or services the organisation delivers, including who the main customers are.

(AC1.3) If you use secondary sources, you should include your short references in the narrative here. Wordcount: Approximately 250 words.

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