Environment and Organization Analysis

Like any other techniques used in organizations, assessment techniques evolve to meet internal and external needs and challenges. They gradually become more integrated, efficient, and effective.

At a minimum, individuals and organizations use parallel techniques for their assessment needs. When they already have more advanced methods, such as structured interviews and assessment centers, companies continue to update their approaches with more useful and effective options over time. Because they deal with more abstract and sensitive people and concepts, often assessed subjectively, the replacement process takes longer and is more influenced by politics than with other tangible assets.

The following tables list the environment and organization characteristics identified in our large exploration field that either favor (+) or delay (-) the use or replacement of more advanced assessment techniques. The listed characteristics are labeled as "Code 5” for use within GRI’s overall framework for a systematic analysis to locate, evaluate, and compare them.

Characteristic	Favors "+" or Delays "-" the Use or Replacement of the Assessment Technique		Code 4
Size of the company	+	The company has fewer than 5,000 employees with short decision-making processes. HR departments have limited resources. The leadership team is actively involved in all areas, including people-related matters, and has autonomy in decision-making.	TAEN
	-	The company has over 5,000 employees and complex decision-making processes. The decisions regarding assessment techniques are not centralized. The HR department has extensive resources for recruitment, high-potential management, etc. Some HR and OD services might be handled by subsidiaries and production units.
Organizational maturity	+	Mature organization. Needs to optimize recruitment and improve decision-making to support internal mobility and help leaders and managers develop social skills. Fast growth challenges are now behind. The business model is well-established. Some employees who joined early may have already left.	MAOR
	-	Start-up, usually less than five years old. The founder or CEO is involved in all areas, relying mainly on their intuition. People and OD issues tend to be overlooked amidst other marketing, financial, or technical concerns. No human growth problems have been encountered yet. There are many development opportunities for employees, with new roles constantly being created. Fewer demands are placed on people's effectiveness.
Industry sector	+	The company is in distribution, sales, tourism, hospitality, and service companies where human factors matter. There are more strategic and frequent people-related issues: employees' attitudes toward customers, turnover, and more. Payroll expenses are by far the most significant. The focus is on employee efficiency, as they are the most expensive and valuable resource.	SEAC
	-	The company is primarily engaged in technical activities, including software development, IT, mechanical engineering, administration, legal, accounting, and finance. The same is true for a company's administrative and support departments.
Cultural embeddedness	+	The company tends to embed its new techniques and methods in its corporate culture. The vocabulary associated with the technique then becomes part of employees' daily language. The company's processes and training play a crucial role in integrating the new methods.	PRCU
	-	The company tends to switch rapidly from one technique to another, without validating or establishing new standards.
Politicization of people aspects.	+	Low politicization of people and social aspects. Unrestricted sharing of personal information. Openness to discussions and confrontation of viewpoints.	POAH
	-	Strong politicization of people and social aspects. Information about individuals is kept secret.
Prior use of techniques	+	The company has not used any assessment techniques yet, other than social media scans and interviews.	UTTP
	-	The company already uses other assessment techniques, such as personality assessments, 360-degree feedback, and assessment centers, which prevent the adoption of new techniques.
Prior use of personality assessment	+	The company has not used any personality assessment yet.	UTPO
	-	The company already uses a personality assessment.
Role of human resources (when the service exists).	+	Strategic role of human resources. Involvement in decisions that influence the organization's overall policy.	RORH
	-	Human resources hold a purely administrative role with no involvement in strategic decisions.
Relationship between the organization and outside consultant or facilitator.	+	The company accepts advice from external consultants or facilitators.	RECE
	-	The company doesn't work with outside consultants or facilitators.
Global organization	+	The organization spans several countries and uses different languages. Headquarters need to understand human aspects from a cross-cultural perspective by comparing individual characteristics from various cultures.	INOR
	-	The company is based in a single country or region. No international employees.

Characteristic	Favors "+" or Delays "-" the Use or Replacement of the Assessment Technique		Code 5
Environment competitiveness	+	The environment is highly competitive, and the use of assessment techniques is seen as a competitive advantage. Challenges in retaining employees and attracting candidates are becoming more common. Engagement issues are increasingly urgent, prompting management to find solutions. The assessment technique is employed to boost employees' efficiency and productivity.	COEN
	-	The organization tends to be monopolistic or bureaucratic. There is less pressure to boost productivity and individual performance. The assessment method competes with others that evaluate different concepts, such as skills or intelligence, and ranks second.
Long-term use of the assessment technique in the industry or country.	+	The use of assessment techniques is already well established across the country. Focus is given to the accuracy and measurement qualities of assessments. Some legal provisions on non-discrimination are necessary and are enforced during hiring.	DETN
	-	There is no nationwide awareness of the assessment technique. Some methods, including pseudoscientific ones, are frequently used. Laws on non-discrimination either do not exist or are not enforced.