Human Resouces Management

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Environmental Factors Affecting Human Resource Planning

Student ID: 11466728
Student name: Aline Ferreira Zwierzinski
HRM 210 Assignment 3
Lecturer: Victor Libdy

September 3rd, 2012
Human resource planning (HRP) is an essential activity that ensures that the exact number of necessary people with the required skills and knowledge are available in the future in order to assist organisations in achieving strategic business objectives (Stone, 2010). In fact, the main activity of human resouces (HR) is to manage human assets and transform them into creators of value (Haines & Lafleur, 2008). In this essay, the environmental factors that affect this process will be discussed in order to aid a HR professional to advise senior managers on economic, social, demographic and technological factors that may influence decisions. These factors are known to affect HRP due to the fact that they also affect the participation of labour force in society (Malik, Faridi, Hussain & Shaukat, 2010). The first environmental factors to be analysed are of economic nature, such as high income tax rates that may make some countries unattractive to some executives. Secondly, the casualization of the workforce can assist organisations in hiring more or less employees as demand arises, thus reducing costs created by full time employment. Thirdly, the impact of globalization on HRP is described, and it is defended that managers need to gain broad understanding in regards of relocation of staff and using rapid technology advancements in their favour. Then, the role of women in HR, as well as demographic factors such as age and education are taken into account, followed by the analysis of the effect of brain drains on organisations. Moreover, it is essential for HR professionals to comprehend the cultural aspects of the environment in which they are operating, so as to being able to recognise the reasons behind employees’ attitudes towards certain tasks. Finally, the technological aspect of the HR environment is analysed and modes in which technology can be used to enhance performance and productivity are suggested, and the manner in which outsourcing is related to technology and organisational improvement is explained. One of the economic factors suggested by Stone (2010) that may influence on HRP decisions are the high income tax rates applied by the government of countries such as Austria and Belgium (Malik et al., 2010). This means that it becomes costly and difficult for organisations in such countries to attract international employees. However, governments are able to assist companies in this issue by implementing tax incentives for high earning international employees. For instance, this is practiced in Nordic nations in order to reduce tax burdens (Gencler, 2012). This is a relevant matter for HR professionals in Australia, since the country also has heavy taxes that may impede plans of hiring foreign workers (Stone, 2010). The casualization of the working force is evidently an essential subject to HR managers, since it can assist organisations in having the correct quantity of employees during times of high levels of activity. Malik et al. (2010) suggest that among the demographic factors that influence the availability of casual workers are age, marital status and number of children, with the figure of workers in the casual working force decreasing according to age and education. Moreover, Watson (2004) believes that this practice results in disadvantages due to poor training and working conditions, as well as low entitlements, all which can be overcome by companies if the proper treatment is provided to this type of personnel. Another matter that has influenced HRP in the last decades is globalisation, since it represents the facilitation in the flow of knowledge and human assets along with Information Technology, which has had a deep impact on competition in the...
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