Human Resource Planning Assignment
1. Define and explain the significance of the term ‘derived demand’ as it applies to Strategic Human Resources Planning. (5 marks)
A demand for a commodity, service, etc. which is a consequence of the demand for something else. In respect to Strategic Human Resource Planning, derived demand applies specifically to labor. The demand for labor is derived from the demand for the goods and services that labor is used to produce. The demand for labor is also influenced by the level of economic activity and the relative cost of labor compared to capital.
An organization will try to plan for vacancies and market fluctuations but derived demand can be difficult to plan for if you have a product or service that has very little discernible difference from your competitors. For example when the Canadian dollar is lower Canadian transport companies are much busier, delivering more exports to the US market which become cheaper for them to purchase.
2. Explain ‘derived demand’ as it applies specifically to Stonewall Industries. (5 marks)
Stonewall Industries produces a commodity item (there is very little discernible difference between their product and their competitors). The demand for that item is directly affected by interest rates and housing starts. As interest rates fall more people can afford to borrow money to build and therefore new building is more appealing. As interest rates rise less people are able to afford borrowing to build and therefore the number of new housing starts fall.
The HR department at Stonewall Industries can monitor these factors so that they can act proactively as opposed to reactively. They can monitor interest rates (by checking Bank of Canada updates)
3. The Senior Executive Team at Stonewall has to consider a number of environmental factors that impact on its Human Resources Planning activities. Describe these environmental factors and explain their impact. (10 marks)
There are many environmental factors that have an impact on the
A demand for a commodity, service, etc. which is a consequence of the demand for something else. In respect to Strategic Human Resource Planning, derived demand applies specifically to labor. The demand for labor is derived from the demand for the goods and services that labor is used to produce. The demand for labor is also influenced by the level of economic activity and the relative cost of labor compared to capital.
An organization will try to plan for vacancies and market fluctuations but derived demand can be difficult to plan for if you have a product or service that has very little discernible difference from your competitors. For example when the Canadian dollar is lower Canadian transport companies are much busier, delivering more exports to the US market which become cheaper for them to purchase.
2. Explain ‘derived demand’ as it applies specifically to Stonewall Industries. (5 marks)
Stonewall Industries produces a commodity item (there is very little discernible difference between their product and their competitors). The demand for that item is directly affected by interest rates and housing starts. As interest rates fall more people can afford to borrow money to build and therefore new building is more appealing. As interest rates rise less people are able to afford borrowing to build and therefore the number of new housing starts fall.
The HR department at Stonewall Industries can monitor these factors so that they can act proactively as opposed to reactively. They can monitor interest rates (by checking Bank of Canada updates)
3. The Senior Executive Team at Stonewall has to consider a number of environmental factors that impact on its Human Resources Planning activities. Describe these environmental factors and explain their impact. (10 marks)
There are many environmental factors that have an impact on the