HR in Context Department of Economic Development

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Economic development is the growth of the economic wealth of a particular country for the citizens which are residing inside it. This is the basic definition given for the economic development. There are two different terms which are used in it which are economic growth which is used for the developed countries and economic development to those for the developing countries. It implies the changes which occur in social and economical structure of a country. Economic Development is not possible without growth but growth is possible without development. There are various various personnel activities which contribute to the organizational success and some internal and external factors which influence these activities. We will be going to discuss all the above points in our upcoming headings.

Introduction to Personnel Activities-

Personnel Activities are the trio of Training, Recruitment and Personnel which involves in the betterment of an organization. If we see according to the point of view of the Department of Economic Development in Abu Dhabi then there is a much need of training in there to improve the skills of the people which are needed in the economic plans that the department are planning for Abu Dhabi.

Personnel Activities-

Personnel activities somehow contribute to the success of an organization. There are basically three types of activities which are performed by the company or an organization uplifts the success of their organization which are -




These are the three activities which participate in the success of an organization.


There are various level of training which is being provided too the employees in the organization to enhance their qualities.

Training gave them better opportunities to perform well which helps in economic growth of the company.

It helps in management of time which is the most important aspect of training.

It helps in motivating the employees which result in increase of competitiveness in them which is the key to sustainability.

Training your staff keeps them up-to-date with the trends and technologies which have newly arrived in the market.

Training improves the labor productivity which can yield a return on investment.

Training given by the department of economic development is with the respect to the commercial sector of the country.


Recruitment is the process through which new talents are introduced in the company or organizations through the process of interviewing and other methods.

It allows only the cream from bunch of people to work in the organization which helps in building the base of the organization.

Recruitment is the process in which only quality people are selected.

The recruiters are given the specifications of the people wanted; they are only recruited through the process.

The students which apply for the post have many innovative ideas and have high energy levels which they bring up to you organization.

Recruitment is done on the basis of developing economic policy which makes more benefit for an organization. (Benefits of Recruitment Programs, 2008)


It is used for determining if the candidate skills which are necessary for the job.

It is used for the selection of the employee when they are equally qualified.

It can access the applicant's job knowledge.

It can be used to appraise the applicant's verbal fluency.

They are used to obtain supplementary information, if any from the applicant.

Introduction to PESTEL Analysis-

The government of Abu Dhabi or the Department of Economic Development has the mission to enhance the Abu Dhabi's business Environment to attract more and more investors and to invest in the best business environment. By the analysis of PESTEL we can get the best environment we can give to the investors by studying about the Political, Economical, Social, Technical, Environmental and Legal factors which comes into the way of organizational success.

PESTEL Analysis-

PESTEL stands for Political, Economical, Social, Technical, Environmental and Legal Analysis. This analysis is done to understand the internal and external factors which influence the personnel activities which are conducted fro the organizational success. There is a table formed below to give the description about the PESTEL Analysis.


There is sometime political hindrance in the selection of the employee or any of the above listed functioning which includes Personnel, Recruitment and Training. Various policies introduced in the market which affects the organizational success through its process. Politically there is more hindrance in the commercial sector of Abu Dhabi which is handled by the Department of Economical Development.


It generally refers to the economic system of the country and the structural anatomy to economic policies of the government, the socio-economic infrastructures, the nature of factor endowment and other many aspects. These affect the organizations success from different ends. As economic policies and socio-economic infrastructures are well established in Abu Dhabi so there is not much problem being faced by the Department of Economic Development.


The value system of the society which in turn affects business functioning. The factors which comes under this headings are cost structure, customs and conventions, respect fro seniority, out cultural heritage, labor mobility etc. have impacts on the business. These are the factors which generally determine the work culture and labor mobility. The social groups will intervene if the business is undergoing any unethical practices.


The business running in a country is greatly influenced by the development in technology. It influences in terms of investment in better technology, consistency in application of technology and its adverse affect on the market. The technology adopted by the industries determines about the production of services and quality of good to be used and the usage of equipment. Technically, Abu Dhabi is much progressed than other cities in Arab region So department of economic development encourages private sector through technically supporting them.


The environment also plays an important role in influencing the business running in a country. There are adverse conditions which are to be faced by the source of the business where the production comes from. It influences the business through its working environment provided by the company to its employees. The environment condition is much suitable for the proper working of Department of Economic Development.


It includes the flexibility and adaptability of the rules and other laws which are meant to be governing the business which affect the business to a great extent and it also affect the related people attached to it. The rules which are being given by the Department of Economic Development have not been much harsh and they are much supportive to the business organization.

(Pushpraj, 2008)

The growing importance environmental factors in the 21st century have given rise to the green business and have encouraged people to adopt the updated version of PEST which is PESTEL. These above given model factors will vary according to the company based on its production of good and based on its industry. Moreover, the factors which are going to change in the near future are or which are more relevant to the company are more important for the company and by using PESTEL analysis we can analyze many other different factors in a firm's environment. The managers should give thinking about each of the factors involved in the PESTEL analysis which are likely to change and which are the factors which would have greatest impact on them instead of just listings the factors. It is also necessary when using PESTEL analysis to consider the level at which it is applied. There are also other factors which are undertaken while running an organization which are local, national and global factors.

Local factors which can be planning permission and growth rates.

National factors which can be retailer opening hours and trade descriptions legislation.

Global factors which can be opening up of new markets which makes trade easier.

PESTEL Analysis has been also introduced by the government of Abu Dhabi and by Department of Economic Development (DED). The department provides licensing of the commercial applications and registrations of trade names and it also conduct the studies to encourage and promote private sector. There is a vision of DED to create an economic environment which ensures continuous growth and provide opportunities to the developed society.

Introduction To SWOT Analysis-

Department of Economic Development of Abu Dhabi has to meet the customer requirements by providing tools and mechanism which provide customer satisfaction. They have been so far successful in giving better services to the customers. SWOT Analysis is done to study the Strengths, Weaknesses, Opportunities and threats which can come above organization so there are measures which are taken for all of the above factors. Department of Economic Development has a vision to provide a economic environment which ensures promising opportunities in the society.

SWOT Analysis-

There are some internal and external factors which plays an important role in strategic planning process. Environmental factors or internal factors usually can be classified as Strengths(S) or Weakness (W) and those which affect externally are classified as Opportunities (O) or Threats (T). Such types of analysis of strategic environment are known as SWOT Analysis.

This type of analysis basically provides information which is helpful in matching the resources and capability to cope up with the competitive environment of the firm. The following table made below tells about the SWOT analysis -


An organization's strengths are its resources and the capability to cope up with the developing competitive market.

It should have strong brand names

It should have good reputation among customers attached with the organization.

It cost advantages from proprietary.

There should be exclusive access to the natural resources which are of high grade.

It is easy to access to the distribution networks.

There are many strong brand names under the Department of Economic Development


The absence of some of the strengths are known as weakness

Lack of patent protection could be considered as weakness

There could be weak brand name

Poor reputation among the customers which are highly attached with the organization

There could be high cost structure which makes the output product costly

There could be lack of access to the best natural resources available

There could be lack of access to the distribution networks

The cost structure in Abu Dhabi is much higher than at any other places.


Analysis of external environment can give rise to the new opportunities for profit and growth

When the customers need is unfulfilled then there is an opportunity to increase the customer number

When there is a new arrival of new technology in the market

When there is loosening in regulations or any type of rule is abandoned

When the international trade barriers are removed

Better opportunities are avail under the banner of Department of Economic Development.


Change in the external environment may cause some threat to an organization.

When customer's taste is changed and carried away from the product.

When there is an emergency of the substitute product

When there is an implementation of new regulation

When there is increment in the international trade barriers.

There are many trade barriers being faced by the business tycoons in Abu Dhabi which is a threat for them.

SWOT Analysis is adopted by the Department of Economic Development (DED) of Abu Dhabi which is responsible for introducing various policies such as economic and commercial policy and preparing the plans and various programmes for implementation of the program. (SWOT Analysis, 1999)

Introduction To Conclusion-

There has been conclusion and recommendation which is provided to fill all the potholes in the organization. The strengths and the weakness which are specified in the SWOT analysis, the steps which should be taken by the Department of Economic Development to remove all the threats and weakness. There has been conclusion given to the PESTEL analysis and Personnel Activities.


There are many factors which affect the economic development in an organization which are discussed above in the form of tables. Economic Development is the social and technological progress which implies in the change in goods and services are produced instead of an increase in production using earlier methods on wider scale. It involves improvements in a variety of factors which are literacy and poverty rates, life expectancy.

Economic Development is basically compared with the economic growth of a particular country. There are internal and external factors which are included in the economic development which influence the personal activities which are performed for organizational success. Mainly there are factors which affect socially and politically in PESTEL Analysis. In SWOT analysis there are strengths, opportunities, weakness and threats which are comprised by an organization. It is a well-defined function which includes multi-dimensional concept which involves improvement in human well being.


Recommendations are given on the basis of the weakness and the threats which are discussed in the SWOT analysis. So there are few recommendations which are given on the later which are-

There should be always production according to the taste of the customer which makes customer satisfaction.

There should be emergent substitute of the product when it is expired.

The organization should be always ready for the change in rules and regulation or the change in policies which changes with the change in government.

The international trade barriers are the taxes and other things which are heavily doped upon the product; in that situation there should be some backup which should be ready.

There should be always stability in the reputation of the organization among the customers.

The cost structure should be maintained low as the market competition is growing day by day.

There should be easy accessibility to the natural resources and the distributing networks which benefits company in both the way.

The good reputation in the market results in the strong brand name which helps in sustaining the ups and downs of the market.

When some new technology is arrived then it should be applied on the process to uplift their technology from other organization.

Change in external environment can cause threat to the organization which should be taken care of.

There should be change in method of working which should be adopted by an organization from time to time.