The Value of Environmental Scanning - Coursework Example

Environmental Scanning Name Institution Instructor Course Date Environmental Scanning Environment can be defined as the surrounding conditions in which a particular activity is carried on. Organizational environment consists of both external and internal factors affecting the organization. Organizational environment must be scanned so as to establish improvement and forecasts that will manipulate organizational achievements. Environmental scanning refers to control and utilization of information about occasion, pattern, trend, and associations within the organization’s external and internal environment. Environmental scanning can also be defined as the methodical gathering of external information so as to minimize the arbitrariness of the information flowing into the organization and also to give early warning for managers of the altering external surroundings (Aguilar, 2007) Scanning identifies the opportunities and threats existing in the organizations environment. This helps the managers to decide the organizations future path. An organization must therefore take advantage of the available opportunities and minimize the threats existing in the environment. However, a threat of one organization may be an opportunity of another organization. Each organization should choose the mode of scanning to use depending on their resources. Mainly there are three modes of business environmental scanning. 1. Systematic scanning. This is based on the information which is related to customers and markets, government policies, rules which have direct contact on the organization’s activities. This information is collected constantly by putting into account significant factors. 2. Ad-hoc scanning. This involves conducting particular surveys and studies to compact with issues affecting environment from time to time. 3. Processed-form scanning. This is simply using information in already processed form accessible from diverse sources within and outside the organization. The first step of environmental scanning is the analysis of the internal environment. Internal environment of the organization includes the interactions between the employees, communication of management and the employees, relations of managers with other managers within the organization from other departments and the communications of management to the shareholders (Correia, 2005). Internal organizational environment also includes access to raw materials, product awareness, organizational makeup, Main employees and equipped potential. Discussions, surveys, and interviews can be used to assess the internal environment. Analyzing the internal environment of an organization helps in identifying the opportunities, strengths, threats and weaknesses of an organization. As the business becomes competitive, there are quick changes in the external environment, information from the external environment which adds essential basics to the success of long-term strategies (Thomas, 2006). It becomes fundamental to recognize competitors’ moves and procedures. Organization has to update the main competences and internal environment as compared to external environment. The organization should be alert and vigilant to acknowledge and alter the environmental changes. There are three correlated environment which should be studied in the external environmental analysis. Direct/industrial environment National environment Macro environment or broader social-economic environment Examining the industrial environment involves evaluation of the nature, period, dynamics and record of the industry. It also requires an assessment of the competitive composition of the organization’s industry as well as the competitive position of a certain organization and its rival. Examining industrial environment also implies appraisal of the consequences of globalization on contest within the industry. Assessing the national environment requires an evaluation of whether the national structure helps to achieve competitive benefit in the globalized environment. Examination of macro-environment involves exploring macro-economic, government, social, political, environmental, legal, technological, ecology, social-cultural and global factors that may manipulate the environment. These factors can affect the organization indirectly but cannot be restricted by it. The examination of organization’s external environments helps to reveal threats and opportunities for an organization. How environmental scanning assist managers improve organizational planning and performance. Managers are the decision makers in the organizations. A successful environmental scanning enables decision makers to recognize existing and potential changes in their organization’s external environments (Fahey & Naravanan, 2006). Environmental scanning provides tactical intellect which is helpful in determining organizational strategies. The effect of this action includes nurturing and understandings of the effects of modify on organizations, aid in forecasting, and bringing opportunity of amends to bear on decision-making process. Environmental scanning also helps the managers in detecting scientific, technological, financial, societal and political trends and dealings vital to the institution. Managers must be able to predict how the organization should get ready to incorporate technological change that will repay economic income, both at the present and in the future. Environmental scanning helps the managers to define the potential threats and opportunities available in the external environment. This helps them to take advantage of the opportunities and avoid the threats. Managers are able to promote a future orientation in the thoughts of management and employees through environmental scanning. They make the employees understand why change is occurring and why they need to embrace the change. The management on the other hand is able to make excellent decisions that are economically important for the success of the organization. Managers are also able to create awareness to the management and staff to trends that are slowing down, speeding up, converging or diverging early enough and therefore address the problems. Environmental scanning is an essential element of the organizations tactical planning development, improving the center capability to respond to and employ change in reaction to external factors. Scanning has improved communication among the line and employees of the organization, and better employee participation in the decision making process. Scanning provide a planned process which encourage people to frequently partake in face-to-face debate on planning issues. As a result of this the organization is capable of developing a number of tactical options that could be used proactively to manage the external adjust. Factors that undermine the value of environmental scanning Individual factors The individual factors affecting environmental scanning are information alertness and exposure to information. Information alertness is the approach and attitude towards information-related actions, denoting the significance credited to information (Strauss, 2005). The main concept describing this is the personal sense of accountability for environmental scanning together with the communication model developed by the individuals. For instance managers might fail to share and distribute some of the information needed in the organization which will undermine environmental scanning. Information exposure is the regularity of contact with well knowledgeable people and contexts which are rich in information. Some organizations might not reach out to the key places within the developed and sector involvement and at times international associations where there is full exposure to information (Patton, 2005). Exposure to information is sturdily influenced by the organizations outwardness. Some organizations offer little opportunities of contact with well knowledgeable people. Information exposure is also influenced by the information environment of the organizations which differ in the variety of situation of contact to and use of information by the employees. Organizational factors Organizational factors affecting the environmental scanning are the information environment and outwardness. Information environment is the set of conditions that establish contact to and application of information in an organization. The prevalence of information is one of the major reasons why it is so hard to account for the expenditure drawn in environmental scanning. This undermines the environmental scanning. Outwardness means the openness and access of the organization to external environment, their permeability to exterior influence and the capability to manipulate the environment. Resource factor Another factor that undermines environmental scanning is the lack of resources. An organization can lack the finances to recruit scanners who would offer half to full day environmental scanning workshop. Mistrust of leading managers may guide the staff to pay attention to personal benefit than holistically on the organizational welfare. The contour of prospect concerning alteration can be radically different among managers and workers (Fahey & Naravanan, 2006). Senior managers must identify the human aspect and the collision change may have on individuals. The ability to handle and to take in the change must be a necessity or the arrangement and undertaking for change may be for naught. The need to survive is joined to the anxiety that emerges from a change-resistant culture. Worker’s need to handle can materialize from his or her perception, such as that accountability is being improved but resources are being condensed or that organization is focusing too greatly on the duty yet neglecting the workers (Glaser, 2008). It can crop up from feelings of lack of confidence or from other workers and managers who are deficient in the capability to cope. Staffs cope and take up adjustment to a much greater degree if they have a feeling that they have skill and ability to face the challenge of change. Poor interactions and communications, poor at-work associations, low commitment, inadequate skills and knowledge and low inspiration to transform are all factors that workers have acknowledged as barriers to embracing and coping with modification thus undermining environmental scanning. References Aguilar, F. J. (2007). Scanning the business environment. New York: McMillan. Fahey, L & Narayanan, V. K. (2006). Macro environment analysis for strategic management. St. Paul: West. Correia, Z. (2005). Scanning the business environment for information. Sheffield: University of Sheffield. Glaser, B. (2008). Theoretical sensitivity. Mill Valley: Sociology Press. Patton, M. Q. (2005). Qualitative evaluation and research methods, 2nd ed. London: Sage. Strauss, A. (2005). Qualitative analysis for social scientists. Cambridge: Cambridge University Press. Thomas, P. S. (2006). Environmental scanning: the state of the art. Long Range Planning, 13 (2), 20-25. Read More