Effect of PEST analysis:

With combining internal forces and external forces the organization should move toward
effective outcomes. Various external factor can influence the ability of a business or investment
to achieve its strategic goal and objectives. Some of the external factors are mentioned below
which affect directly or indirectly to the business organization(Gerwick, & Sparks, 2014).

Political factor: The political environment influences the organization. The political attitudes
toward business, union, management risk , strike can differ extremely from state to state The
rules and regulation made by government should be followed by each and every organization,

Economic factor: The unemployment rate, public versus private ownership, the level of
investment, the availability of credit, the amount of debit and the level and type of taxes directly
and indirectly influence recruitment, selection, compensation and benefit . The nature of human
resources available to the organization in terms of numbers of geographical distribution, age, sex,
literally of the population has great impact on business organization.

Social factor: Changing values and attitudes towards issues such as dress, work, minorities,
union management status, reward affect business organization. The management should know
how to handle dual career couples in an interstate or international transfer such as smoking
should be allowed in work place, whether benefit should be allowed to the partners of gay
employee. Historical background, ideologies, values, norms and language all influence employee
on the role of HRM, EEO, Job titles and specific aspect of HR such as job tasks and duties,
education, rewards.

Technological factor: The level of technological advancement and rate of technological change
affect job design, recruitment, selection, training etc, Sales representatives using notebook move
towards computers, for example: Staff can now work from home and can spend more time
selling instead of wasting time commuting to the office.

Likewise internal factor also affect the organizational mission and vision. Global business
system helps increase workforce who helps to raise the HR productivity and provide better
experience in workforce.

Solution generation:

Goals and other form of business organization such as new idea, vision, mission provide many
resources and will help to find any effective measure to solve the problem.