Section Twoinstructors, the firm can react quickly to the changing demands
of its clients.
Additionally, recognition of the human resource cost
implications of strategies can be brought into the strategy
formulation process when human resource management plays
an important role. This has not typically been the case in the
past, until such costs have become extreme. To be sure, goal
displacement or losing track of the objective is an outcome to
be avoided when human resource capabilities are a primary
driver in strategy formulation.^60 However, such dysfunctional
side effects can be avoided with periodic reviews of the
process.
Environmental Scanning and
Competitive Intelligence
Human resource management has a role in environmental
scanning, just like the finance and marketing functions.
Scanning activities are particularly important in periods of
rapidly changing technology and dynamic market environments.
Typically, such scanning efforts focus on trends three to five
years into the future and cover developments in demographics,
technology, social issues, economics, and the regulatory
environment.^61 An example of trends of interest to human
resource scanners might be the reactions of competitors to