Challenges Of Labor Supply, Demand Based On Globalization

Challenges faced by Australian businesses in the present era

Essay on Challenges of Labor Supply, Demand based on globalization.

Human resource management is an important aspect in every business. The parameter of human resource management enables the business organizations to manage the performance of the staffs in terms of making effective and judicious use of the human resources. This is also applicable in the phase of challenges like the challenge of labor supply and demand. These challenges are obvious in the ambience of globalization, stalling the productivity (Marchington et al., 2016). In this phase, the organizational people need to make strategies and plans for the achievement of effective solutions. Herein lays the effectiveness of “human resource planning”, one of the aspects, which the essay would look into. The nature of these challenges is external, which adversely affects the demography of the business organizations. The essay would particularly focus on the external and demographic challenges, encountered by the Australian business.

Issues in managing workforce

The present era of business is competitive, making it difficult for the business organizations to secure their market position. The brands are running blindly in the rat race for grabbing the hot seat. This mentality of the marketers has compromised with the needs, demands and requirements of the clients and customers (Sparrow, Brewster & Chung, 2016). The major drive behind this compromise is the poor infrastructure, which aggravates the complexities of the brands to deliver quality products. Absence of planning is the main reason behind this incapability, which compels the brands to face intense competition from the contemporary brands. The following paragraphs enhance the clarity of the readers regarding the challenges faced by the Australian brands.

The requirements of the organizations vary according to the specific tastes and preferences of the customers. The labor demand and supply also varies according to these requirements. However, if there is absence in the workforce planning, it becomes difficult for the personnel to meet the demands of the stakeholders and shareholders (Pinto, 2015). Example can be given of Westfarmers, where the managers faced the issue of poor talent management. The staffs failed to make practical application of the learnt skills towards execution of the learnt skills. Moreover, the managers emerged unsuccessful in managing the performance of the staffs. This resulted in customer turnover in large extents, providing competitive advantage to the contemporary brands. This issue indicates the necessity of planning right from the initial stages of project. Before undertaking a project, the brands need to ensure the presence of adequate workforce (Brewster et al., 2016).

Nature of demand and supply curve

The nature of the demand and supply curve is variable. The grounds of these variations are salary hikes. Salary hikes in other neighboring countries attract the employees, which compels the brands to lose their market position within the competitive ambience of Australian market. Increased demand for the production of the quality goods and services simultaneously increases the need for labor. Here, the example of Woolworths can be referred. More labors were needed for serving crème egg ice cream to the customers. In terms of the labor supply, high value for the efforts given attracts the labors (Albrecht et al., 2015). On the other hand, low returns for the efforts given, results in less labor supply. The example of Coles can prove appropriate. Here, the labors were promised high salary for the efforts they would give towards the betterment of the company. Staying true to the promise bestowed talented minds to the company, resulting in the exposure of collaborative output.

Technological variations also disrupt the balance between the labor supply and demand. The countries with advanced technologies require skilled and efficient labors. On the contrary, the countries developing in technology also require skilled labors. However, if the brands do not possess adequate workforce, the technological upgradation is of no use. Countering this, in the present competitive ambience, technology is of prime importance. This is in terms of systematizing the business activities (Kramar, 2014). Herein the example of Telstra can be given. For providing the customers with quality telecommunication services, labors skills in technology are needed. Latest and modern technologies reduce the burden of the employees regarding execution of the allocated duties and responsibilities. However, if the employees lack the basic technological skills, Telstra staffs would encounter the issues of complaints from the customers regarding the provision of poor quality service. Absence of planning in the infrastructure is the main issue, which results in the achievement of negative outcomes (Wingerden, Derks & Bakker, 2017).

Viewing it from other perspective, technology is also needed for the office staffs, who file all the documents. Possession of computer basic skills is an advantage in terms of ensuring the safety, security and privacy of the organizational data. For this, the managers of companies like Telstra need to be cautious while recruiting the candidates. Taking practical tests would help the managers to assess the capability of the candidates to make practical application of the learnt skills in executing the allocated duties and responsibilities.

Technological variations affecting the balance between labor supply and demand

Hostile relationship with the hiring managers is also a challenge for the companies and organizations in terms of managing the workforce efficiently and effectively. This hostility creates confusion in terms of the exact requirements in terms of recruitment and selection, leading to conflicts (Marler & Parry, 2016). These conflicts stall the business productivity.  The aspect of low wage aggravates the intensity of these conflicts, which destroys the stability in the relationship between the employees, employers and the managers.

External and demographic challenges

Australia is a densely populated country, where people from different cultures reside. Like other countries, here also the needs, demands and requirements vary from person to person. Census reports indicate the presence of labors with low skills migrating to the other countries for achieving professional development. The census report also indicates the presence of highly skilled labors struggling with the hardships of unemployment (Tansel, 2017). The Australian brands such as Telstra, Coles and Woolworths face external challenges, the dimensions of which are political, economic, social, technological, legal and environmental. The following paragraphs deals provides an insight into these challenges.

Governmental restrictions in the execution of the import and export activities pose as an obstacle for the Australian brands. Political unrest with the neighboring countries aggravates the complexities regarding fulfilling the needs of the stakeholders and shareholders. Imposition of tax tariffs on the import and export activities hampers the growth process of the brands. These political unrests and the tax tariffs, gives rise to financial instabilities in the form of inflation, high fluctuation in the prices of the raw materials and high exchange rates (Theconversation.com, 2018). These instabilities make it difficult for the brand personnel to set prices of the products. Due to this difficulty, the purchasing power of the middle class customers is highly affected, as they are struggling with maintaining the balance between the personal and professional life.

The neighboring countries possess latest and modern technologies and needs highly skilled labors from the Australia. This is a challenge for the Australian companies and organizations if there is an absence of adequate labors, who are skilled and efficient. Lack of knowledge regarding the basic computer operations is a loss for the brands in terms of enhancing the efficiency in the business activities. Sometimes possession of highly skilled labors and lack of latest and modern technologies is also a challenge for the Australian companies and organizations in terms of enhancing the productivity (Abc.net.au, 2018).

External challenges faced by Australian businesses

Legal compliance is crucial for the companies and organizations in terms of averting illegal scandals and issues. This is applicable for all the business aspects- products, consumers, ethics and the ways in which the business activities are executed. For example, Data Protection Act (1998) enables the brand personnel to secure the personal belongings of the stakeholders and shareholders. Non-compliance towards the protection of the organizational data compels the company personnel to loss trust, dependence and loyalty of the customers. consumer Protection Act is also applicable here, as the main objective of the brands is to cater to the needs, demands and requirements of the customers (Abc.net.au, 2018). However, in terms of securing the market position in the competitive ambience, the needs of the customers is compromised. Consistency in this aspect is a challenge for the brands to achieve competitive advantage over the contemporary brands.

Environment is one such parameter, which the companies and organizations need to adhere for enhancing the corporate social responsibility. This is specially applicable for the industries manufacturing energy. These industries emit large amount of smoke into the environment, which adds to the existing pollution level. The people residing near the factories are affected through the smoke. Along with these, the water bodies also gets polluted, which destroys the life of marine animals. Negligent attitude of the personnel pose as a challenge in terms of preserving the ecological biodiversity.

Every single difficulty would seem a challenge to the brands, if there is a lack of rational approach towards the execution of the allocated duties and responsibilities. Apart from this, lack of planning contradicts the systematic execution of the business activities. This rationality is missing in the current mentality of the personnel in terms of securing their market position. What the marketers fail to understand is that if they diligently serve the customers, their business would itself grow. However, certain steps need to be followed for the achievement of growth in a proper manner.

Human resource planning is the crucial element, which needs to be developed by the brands. Focus needs to be placed on modifications of the current organizational resources. Modifications would make the personnel aware of the additional resource requirements if any. Even modifications need planning for taking the correct amount of supplies at the right time. Taking the assistance of the other staffs would make the staffs aware of the appropriateness, effectiveness and feasibility of the planned modifications. Collaborating with the other functional units and departments would bestow a number of solutions for the problems, which the brand personnel encounter. Meetings and conferences would make the board panel aware of the solutions planned by the personnel. Involvement of the board members is essential, as without their approval the planned initiatives hold no value.

Importance of human resource planning

Internal replacement of the charts created for human resource planning needs to be done tactfully. Lack of consciousness in this replacement would mean the personnel are adopting wrong means for the overpowering the contemporary brands in the competitive ambience. On the other hand, observing the steps of the contemporary brands and then making plans would be a wise step in terms of securing the market position.

Providing training to the staffs would prove crucial in terms of upgrading their current skills, knowledge and expertise. Inclusion of the basic management skills in the course materials would make the staffs aware of the marketing basics. Along with this, provision of computer training would broaden the perspective of the staffs towards the events taking place in their surroundings. Taking post training tests would make the managers aware of staffs’ capability regarding making practical usage of the learnt skills in the workplace operations. Evaluation is also needed in terms of reviewing the appropriateness, effectiveness and feasibility of the exposed performance. Maintaining consistency in the execution of evaluation would upgrade the performance of the brands, enabling them to achieve competitive advantage over the contemporary brands

References

Abc.net.au (2018), Is globalization coming to an end?, Retrieved 31^st January 2018 from https://www.abc.net.au/news/2016-06-20/verrender-is-globalisation-coming-to-an-end/7524732

abc.net.au (2018), The retreat from globalization, Retrieved 31^st January 2018 from https://www. abc.net.au /news/2013-10-01/das-the-retreat-from-globalisation/4989028

Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015). Employee engagement, human resource management practices and competitive advantage: An integrated approach. Journal of Organizational Effectiveness: People and Performance, 2(1), 7-35.

Brewster, C., Houldsworth, E., Sparrow, P., & Vernon, G. (2016). International human resource management. Kogan Page Publishers.

Kramar, R. (2014). Beyond strategic human resource management: is sustainable human resource management the next approach?. The International Journal of Human Resource Management, 25(8), 1069-1089.

Marchington, M., Wilkinson, A., Donnelly, R., & Kynighou, A. (2016). Human resource management at work. Kogan Page Publishers.

Marler, J. H., & Parry, E. (2016). Human resource management, strategic involvement and e-HRM technology. The International Journal of Human Resource Management, 27(19), 2233-2253.

McCollum, D., & Findlay, A. (2017). Oiling the wheels? Flexible labour markets and the migration industry. Journal of Ethnic and Migration Studies, 1-17.

Ortiga, Y. Y. (2017). The flexible university: higher education and the global production of migrant labor. British Journal of Sociology of Education, 38(4), 485-499.

Pinto, J. K. (2015). Project management: achieving competitive advantage. Prentice Hall.

Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management. Routledge.

Tansel, B. (2017). From electronic consumer products to e-wastes: global outlook, waste quantities, recycling challenges. Environment international, 98, 35-45.

Theconversation.com (2018), The least skilled workers are the losers in globalization, Retrieved 31^st January 2018 from https://theconversation.com/the-least-skilled-workers-are-the-losers-in-globalisation-63655

Van Wingerden, J., Derks, D., & Bakker, A. B. (2017). The impact of personal resources and job crafting interventions on work engagement and performance. Human Resource Management, 56(1), 51-67.