Strategic PM&D Management: Internal & External Factors

Posted on Mar 14, 2025 in Business Administration and Management (BAM)

Requirements in PM&D Management

Internal Influence Factors

Top Management’s Support:

• Importance of HR within the organization.
• Proactive vs. Reactive.
• HR department vs. Personnel department.

Strategy: Implies the characteristics that the employees should have (skills, knowledge) in the organization. Could be found internally or should be acquired in the market.

Culture: Organization’s system of values. Highly influenced by Top Management. Business ethics, motivation, management style, freedom/responsibility, criteria for internal promotion, orientation to results, ambiance.

Technology and Structure: Refers to the equipment and the “know-how” to produce goods and yield services. New production systems change the organization’s structure.

• Work control is transferred to each individual.
• Leaner organizations change the way to evaluate, promote, develop, and retribute.

Size: Big organizations have larger internal labor sources, being less dependable on the external market and having more freedom. But also have more formal structure and processes, losing flexibility. Medium and Small size companies don’t even have HR departments. But someone has to have the HR responsibility.

External Influence Factors

The Economy:

• Strong local/regional/national economies have high employment and wage levels, raising the importance of recruiting and keeping key employees and demanding more qualified agents.

International Competition:

• PM&D management is also affected by international trade agreements.
• Companies which operate in global markets must be more competitive, and flexible, and should review their PM&D policies constantly.
• Local markets have proved to be insufficient for companies to grow nowadays.

Increasing Importance of PM&D Management

Companies must not only survive, they should be successful in the coming decades. Some issues jeopardize this mission:

• Increasing competition: Global Market. Best employees.
• Costs of Human Resources: Ranges from 30 to 80%.
• Crisis of Productivity: New technologies. Leisure culture.
• Rhythm: Knowledge, skills, values.
• Ambiance at the workplace: Stress, routine, unhappiness.

PM&D Trends in the 21st Century:

• Buy-out’s down-scaling.
• PM&D’s strategic scope.
• Becoming in-line consultants.
• New priorities when acting and planning PM.

Subjects of Strategic Analysis

• Model of the five Competitive Forces (M. Porter).
• S.W.O.T.: System to diagnose a company’s internal and external competitive position when setting strategic objectives (Weaknesses, Threats, Strengths, and Opportunities).

Strategic Planning

Strategic Planning is the process of setting long-term objectives, analyzing internal strengths and weaknesses, and compromising needed resources to prevent threats and profit from opportunities.

Evolution of PM&D:

Product Life Cycle