SAVANNAH ENGINEERING AND HUMAN RESOURCE ✓ Solved

The domestic business environment includes the climate, business policies, the facilities as well as the regulation that governs both the organizational leadership structure and the available market share. Savannah Engineering, Inspection and Insurance Company (SEIIC), America's oldest insurance, corporate focuses on covering equipment manufacturers, transport, and energy sectors. The company has a vision of meeting the industry requirement of the continent and thus requires to focus on the emerging trends in the human resource. Although the market in engineering insurance for infection and manufacturing organizations, SEIIC considers the trends in economic, legal, technology, and the diverse cultures within the market share.

The Economic and Financial Market Trends

The economic and financial environment that business organizations operate influence the buying and selling habits of the customers in the insurance sectors. The main factors in the environment include the availability of the market, employment, the demand for the company's products as well as the competition of the company with other companies. The trends in the economic and financial environment are economic downturns and the exchange rate. During the economic downturns in 2008/2009 great recession, insurance companies cut down operation costs to enable it to make sufficient profits. On the other hand, the fluctuation of the exchange rate has a significant impact on returns of the business organization as well as influencing compensation and benefits of the employee (Ochetan & Ochetan, 2012).

In this case, the lowering of the dollar value affects the cost of the insurance products when sold outside the United States. In particular, the volatility of the dollar affects the company's imports outside the United States, and thus increases the operation cost.

Legal and Political Trends

Legal and political forces lead to the increasing demand for transparency in recruitment and accountability among the organization operating in the United States. The political factors represent the governmental entities that influence the domestic environment of the company's operation. As a result, the political trends that influence the internal environment originate from the government policies and the political stability of the American community (Hatcher, 2010).

Another political bias in the engineering, inspection, and insurance sector is the increase of powers of the non-state actors such as the World Bank. Also, the legal trends affecting the human resource of the company in the employment contracts include setting the minimum ages for employees. Therefore, the company faces the challenge of attracting and retaining talent.

Social and Cultural Trends

Social and cultural forces influencing the SEIIC human resource management are the customs, practices, belief systems, and traditions of the employees working in the organization. The socio-cultural perspective affects the decision of the marketing managers in the engineering, inspection, and insurance company. Also, the behaviors of the people residing in the host company determine the strategic goals of the company when entering a new market. The major trends in the social and cultural environment include the change in preferences, change in demographics, as well as the moral values of the employees in the business organization. The workforce demographic is getting younger as the millennials make the most significant percentage of the American workforce (Nascimento, 2017). Additionally, human resource managers are part of the executive making decisions for the company. As a result, the company has created a new "social contract" with the employees to offer a flexible working environment.

Global and Technology Trends

The expansion of business organizations such as SEIIC depends on the global state of the market share. Globalization has made the company expand its operation abroad to increase the customer base. The increase in the handling of massive data within the business organization has led to the emergence of technology. Companies are paving the way for virtual reality to facilitate intensive operation and higher productivity. As a result, human resource management of the most business organizations has opted for the Internet of Things.

In this case, employee devices are interconnected in a network to assist the company in monitoring the performance of each employee through the e-HR portal (Kavanagh, Thite, & Johnson, 2011; Fuhl, 2017). The Internet of Things (IoT) generates a massive amount of data to show the employee’s operation daily.

Trends Affecting SEIIC Human Resource Management

The two major trends that are likely to affect SEIIC are globalization and the compensation benefits. Globalization shall lead to the company's diversity training and cross-cultural employment. As compared to the traditional recruitment model, the company shall opt for the global recruitment model. On the other hand, different countries have a different level of compensation and benefits. For instance, United States federal laws state the minimum vacation period for employees. In the United Kingdom, employees can go for a holiday as per the requirements of their job nature. Various trends influence the operations of companies like SEIIC. The trends may either impact positively and create opportunities for the company or affect the services in the human resource department.

Some of the trends in business resource management include globalization, change in technologies, the fluctuation of dollar currency, and the tax rates, social behaviors as well as the shift in demographics. However, globalization and the difference in compensation and benefits may influence the operation at SEIIC Human Resource Management.

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