Help with key take aways from this lecture and make a manager mission statement using the key components in the lecture example: (My Manager's Mission Statement involves embodying adaptability, strategic planning, collaboration, intrinsic motivation, and effective communication. By learning from the course material and recognizing the potential pitfalls, I am determined to be a manager who drives organizational success and cultivates a culture of empowerment, growth, and achievement.)

12:14 77 The term external environment" refers to factors, forces, situations, and events outside the organiza- tion that affect its performance. As shown in Ex- hibit 2-19, it includes several different compo- nents. The economic component encompasses fac- tors such as interest rates, inflation, employ- ment/unemployment rates, disposable income lev- els, stock market fluctuations, and business cycle stages. The demographic component is concerned with trends in population characteristics such as age, race, gender, education level, geographic loca- tion, and family composition. The technological component is concerned with scientific or industri- al innovations. The sociocultural component is concerned with societal and cultural factors such as values, attitudes, trends, traditions, lifestyles, be- liefs, tastes, and patterns of behavior. The politi- cal/legal component looks at federal, state, and lo- cal laws, as well as laws of other countries and global laws. It also includes a country's political conditions and stability. And the global component encompasses those issues (like a volcano eruption, political instability, terrorist attack, etc.) associated with globalization and a world economy. Although all these components potentially constrain man- agers' decisions and actions, we're going to take a more in-depth look at just two-economic and de- mographic.What Is Planning and Why Do Managers Need to Plan? 51 Discuss the nature and purposes of planning. All managers plan. Even if you're not a manager, you're likely to have to plan when, where, and how to get your work assignments done. Planning is often called the primary managementfanc tion because it establishes the basis for all the other things managers do as they organize, lead, and control. What is meant by the term planning? As we said in Chapter 1 lg, planning involves defining the organization's objectives or goals, establishing an overall strategy for achieving those goals, and developing a comprehensive hierarchy of plans to integrate and coordinate activities. It's concerned with ends (what is to be done) as well as with means (how it's to be done). Planning can be further defined in terms of whether it's formal or informal. All managers plan, even if it's only informally. In informal planning, very little, if anything, is written down. What is to 1215 Planning can be further defined in terms of whether it's formal or informal. All managers plan, even if it's only informally. In informal planning, very little, if anything, is written down. What is to be accomplished is in the heads of one or a few people. Furthermore, the organization's goals are rarely verbalized. Informal planning generally de- scribes the planning that takes place in many smaller businesses. The owner-manager has an idea of where he or she wants to go and how he or she expects to get there. The planning may be gen- eral and lack continuity. Of course, you'll see infor- mal planning in some large organizations, while some small businesses will have sophisticated for- mal plans. (See Chapter 7IEI for more in-depth in- formation on planning in small and en trepreneurial organizations.) When we use the term planning in this text, we're referring to formal planning. Formal planning means (1) defining specic goals covering a specif ic time period, (2) writing down these goals and making them available to organization members, and (3) using these goals to develop specific plans that clearly define the path the organization will take to get from where it is to where it wants to be. Why Should Managers Formally Plan? 12215 Why Should Managers Formally Plan? How does Wal-Mart Stores Inc.the world's largest retailer with more than 11,700 stores world widehope to compete against online giant Ama zon? Walmart, like the other big-box retailers, didn't immediately recognize the online revolu- tion. Most have struggled to come up with a plan to compete, if not beat, Amazon. After several years of futile attempts to capture online shoppers, Walmart has a new plan to win at e-commerce. Despite the challenges of taking on the industry behemoth (Amazon), Walmartcom now is the sec ond-biggest e-commerce destination in the United States And Walmart's managersfrom corporate to individual storesknow that planning is and will continue to be Vital to the company's contin- ued success excelling at brickandmortar and on- line shopping.3E Managers should plan for at least four reasons. (See Exhibit 51.9) First, planning establishes coor dinated efort. It gives direction to managers and nonmanagerial employees. When all organization- al members understand where the organization is going and what they must contribute to reach the goals, they can begin to coordinate their activities, thus fostering teamwork and cooperation. On the What Is the Human Resource Management Process and What Inuences It? 91 Describe the key components of the human resource management process and the important inuences on that process. As grocery chains face increasing competition from Amazon.com (and its purchase of Whole Foods Market), they're searching for ways to remain com petitive. Kroger Co., for example, is hiring 11,000 workers to improve customer service and efficiency at its 2,800 supermarkets.3g Its strategy? Invest in people and be positioned to better compete with Amazon. The quality of an organization is to a large degree determined by the quality of the people it employs. Success for most organizations depends on nding the employees with the skills to successfully per- form the tasks required to attain the company's strategic goals. Staffing and HRM decisions and actions are critical to ensuring that the organiza- tion hires and keeps the right people. Getting that done is what human resource man- 12216 are accomplished through orientation and training. The last steps in the HRM process are designed to identify performance goals, correct performance problems if necessary, and help employees sustain a high level of performance over their entire work life. The activities involved include performance appraisal, and compensation and benets. (I-IRM also includes safety and health issues, but we're not covering those topics in this book.) All these activities, if properly executed, will staff an organi- zation with competent, high-performing employ ees who are capable of sustaining their perfor- mance levels over the long run. I-IRM 2 Right People, Right Place, Right Time Notice in Exhibit 91 IE' that the entire process is inuenced by the external environment. Many of the factors we discussed in Chapter ZIE' directly af- fect all management practices, but their effect is keenly felt in managing the organization's human resources because whatever happens to an organi- zation ultimately inuences what happens to its employees. 50, before we review the I-IRM process, let's examine one external force that affects itthe legal environment. What Is the Legal Environment of 1216 lets examine one external force that affects itthe legal environment. What Is the Legal Environment of I-IRM? I-IRM practices are governed by laws, which vary from country to country. State (or provincial) and local regulations further inuence specic practices within countries. Consequently, it's impossible to provide you with all the information you need about the relevant regulatory environment. As a manager, it will be important for you to know what you legally can and cannot do wherever you're lo- cated. What Are the Primary US. Laws Affecting HRM? Since the mid1960s, the federal government in the United States has greatly expanded its inuence over HRM by enacting a number of laws and regu- lations (see Exhibit 929 for examples). Although we've not seen many laws enacted recently at the federal level, many states have enacted laws that add to the provisions of the federal laws. Today's employers must ensure that equal employment op- portunities exist for job applicants and current em ployees. Decisions regarding who will be hired, for example, or which employees will be chosen for a management training program must be made with