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PHR · Question #143

The process that systematically surveys and interprets relevant and external data about the economy, government, laws, and demographic factors to identify external opportunities and threats is…

The correct answer is B. Environmental scanning. Environmental scanning is the strategic HR process of systematically collecting and analyzing external data - economic, legal, governmental, and demographic - to identify opportunities and threats facing the organization.

Business Management

Question

The process that systematically surveys and interprets relevant and external data about the economy, government, laws, and demographic factors to identify external opportunities and threats is called what?

Options

  • AHuman resource audit
  • BEnvironmental scanning
  • CEmployee engagement survey
  • DEqual employment opportunity (EEO) analysis

How the community answered

(20 responses)
  • A
    5% (1)
  • B
    75% (15)
  • C
    5% (1)
  • D
    15% (3)

Why each option

Environmental scanning is the strategic HR process of systematically collecting and analyzing external data - economic, legal, governmental, and demographic - to identify opportunities and threats facing the organization.

AHuman resource audit

A human resource audit is an internal review of HR policies, practices, documentation, and compliance - it evaluates what the organization is currently doing internally and does not survey external economic or demographic forces.

BEnvironmental scanningCorrect

Environmental scanning is a foundational strategic HR planning tool that examines forces outside the organization, including economic conditions, labor market trends, legislation, and demographic shifts, to surface opportunities and threats. By continuously monitoring the external environment, HR leaders can proactively align workforce strategies with emerging conditions rather than reacting after changes have already occurred. It is explicitly external in scope, distinguishing it from internal assessments like audits or surveys.

CEmployee engagement survey

An employee engagement survey collects internal attitudinal data from the workforce about motivation, satisfaction, and commitment - it does not address external market, legal, or demographic environmental factors.

DEqual employment opportunity (EEO) analysis

An EEO analysis examines internal workforce composition relative to external availability data to assess compliance with equal employment opportunity requirements - it is a compliance-focused tool, not a broad environmental intelligence process.

Concept tested: Environmental scanning in strategic HR planning

Topics

#environmental scanning#strategic planning#external analysis#HR strategy

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