LABOUR MARKETS1 Labour Market: Tight and Loose Market Human resource within the organisation plays an important role in ensuring the success of the organisation within the industry. As the activities within the organisation are being performed by the employees within the organisation, therefore the skills and competencies of the employees within the organisation define the effectiveness of the performed activities within the organisation. The organisation's human resource policies are effectively focused on the labour markets and the availability of the labour within the industry, as depending upon the market economic condition and availability the organisation plans to resource the candidates within the industry(Garavan & McGuire, 2010). The labour market impacts human resource planning as the organisation focus on recruiting andretainingemployeesdependinguponthemarketconditions.Thelabourmarket conditions can be broadly classified into two phases, tight labour market and loose labour market(Cascio, 2015). The analysis is effectively focused on understanding the phases of the labour market and accordingly analysing its impacts on human resource planning within the organisation.The analysis is focused on analysing the human resource planning activities at P&G and the impact of tight and loose labour market conditions on the hiring process at P&G. The organisations focus on the labour market to resource the talent within the industry based on the market conditions. The labour markets are in the form of the tight labour market as well as the loose labour market. The tight labour market is defined as a scenario under which the employment rate increases and the organisation has to focus on different sources to recruit the candidates to require and even the pay scale increases. Tight labour market results in positive results to the society, as under tight labour market the individuals willing to employment get a job at better wages and even the organisations focus on improving the employee retention rates(Taylor, et al., 2012). Tight labour market effectively helps in dealing with the employment issues as well as reduces inequalities within the society as the individuals have job titles as per their skills and capabilities, also results in the economic growth of the nation. As the working population of the society increases, also they fair and better wages as the organisations are not able to hire large workforce due to the limitations within the tight market, due to which they focus on effectively paying to the existing workforce and retain them within the organisation(Bonoli, 2017).
LABOUR MARKETS2 On the other hand, Loose labour market results in increased unemployment rates within the nation and increased inequality within the classes. The situation arises when the number of the unemployed rises within the industry, either due to low productivity or due to the availability of the workforce more than requirement within the industry. Under such situation, organisation focus on recruiting the employees at low wages as there have a substantial number of individuals available to work for the organisation, therefore they provide the employees low wages as compared to their skills and capabilities(Gumata & Ndou, 2017). The loose labour market also affects the nations economic condition as the nations suffer from high unemployment rates due to which the inequality within the society increases and the per capita income within the society decreases, which also results in increasing the overall wage pressure within the nation. The government focus on attracting the manufacturing units within the nation to reduce the unemployment rate and to move towards the tight labour market. Therefore, the tight labour market results in a benefit to the employees as well as the government, as well as under loose labour market, the organisations get the benefit of cheap labour and the society suffers under the situation(Gumata & Ndou, 2017). Labourmarketimpactsworkforceplanningwithintheorganisation.Theorganisation workforce planning effectively starts from analysing the workforce requirements within the organisation and accordingly analysing the availability of the workforce within the industry. In the case of tight as well as loose labour market organisations has to focus on adopting different strategies to source and retain the candidates. Under tight labour market, the organisations have limited workforce available due to which they are required to focus on multiple sources to recruit talent for their organisation and even at higher wage rates as there are multiple organisations present within the industry to hire the desired candidate at higher wages(Kersley, et al., 2013). Also, the organisations focus on hiring a limited number of the workforce due to the non- availability of the skilled and desired candidates within the industry. The organisation has a limited number of candidates available within the industry and is required to focus on effectively analysing the skills and competencies within the industry so that the right candidate can be hired within the organisation and the organisation efficiency can be achieved. The organisation talent planning within the organisation is effectively focused on ensuring effective training development activities within the industry so that the employees within the industry can be hired and be provided with effective training and development
LABOUR MARKETS3 opportunitieswithintheorganisationsothattheemployeecandevelopskillsand competencies as per the requirements of the organisation(P&G, 2012). The loose labour market provides the organisation opportunity to hire the best candidate as per the organisation’s requirements from the industry. As under loose labour market, the unemployment rate is high due to which several candidates are available within the industry searching for the job, as a result, the organisation gets an opportunity to hire the best and suitable candidate for the job role within the industry. Also, the recruitment planning under loose labour market requires less cost incurred within the process, as the organisation does not require to focus on multiple sources to resource the candidates within the organisation (Klingner, et al., 2015). The organisations within the industry focus on ensuring that the employees are performing to their maximum at the minimum cost within the organisation, as they are assured that there are several candidates within the industry willing to work at low and preferable cost. The organisation focuses on developing plans to retain the candidates within the organisation in case of the tight labour market, whereas under loose labour market the organisation focuses on hiring new candidate in case the existing employee leaves the organisation(Cappelli & Keller, 2014). P&G is a multinational organisational dealing with consumer goods and operates in different nations in the international market. The organisation effectively focuses on resourcing talents from the industry and retaining them within the industry so that the organisation’s goal and objectives within the industry can be achieved. The human resource planning at P&G starts with analysing the human resource requirements within the organisation based on the internal analysis as well as the changes within the industry. After that, the management focuses on developing selection and recruitment process as per the position within the organisation for which they are conducting candidate resourcing(Vitasek & Manrodt, 2012). P&G effectively focuses on the experience level of the candidates as well as their skills and capabilities according to the job role for which they are being hired within the organisation. So that the organisation effectiveness can be achieved and the right candidate can be placed in the right position within the industry. The talent resourcing at P&G is done from multiple sources depending upon the availability of the candidates within the industry. Also, the organisation prefers multiple sources so that the organisation effort to source the candidates
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LABOUR MARKETS4 can be minimised and the organisation can focus upon other necessary aspects within the recruitment process(O. Weeks, 2013). The next step within the process at P&G is to provide the recruited candidates with the effective training programs so that they can understand their job roles within the organisation and the way the organisation operates within the industry. The training program results in improving the efficiency of the employees and to contribute towards improving performance within the industry. The human resource planning at P&G includes employee retention as a key aspect as to hire the employees within the organisation, as the employees within the organisation effectively focus on the organisational goal achievement and ensure the long- term success of the organisation. Therefore, human resource planning at P&G is developed effectively after determining the organisation need and requirement and is focused on developing and retaining an effective workforce within the organisation(Zhang, 2019). Labourmarketimpactsthehumanresourceplanningwithintheorganisationasthe organisation focus upon developing policies based on the labour conditions within the industry. In case of the tight labour market, the organisation develops policies to focus on various factors to recruit the workforce within the organisation and the similar procedure is being applied to a large number of candidates in case of the loose labour market. P&G effectively focuses on the retention program of the employees within the organisation, by offering them with compensation and benefits while working within the organisation, also the organisation provides training and development opportunities to the employees within the organisation, such practices improve employee performance as well as motivation within the organisation which improves employee retention within the organisation(Bamberger, et al., 2014). Employee retention policies within the organisation helps the organisation in human resource planning within the tight as well as the loose labour market, as in tight labour market when the employment rate is lower and the supply of workforce is limited within the industry, in such case, the employee retention policies by P&G helps in retaining employees within the organisation and to achieve the organisational goals and objectives within the industry. Also, the organisation adapts multiple sources such as online portal developed by the organisation, or through external recruiting agencies within the industry(Ong, 2017). P&G human resource effectively focus on predicting the labour market conditions within the industry and accordingly develops policies and strategies to source the candidates as per the
LABOUR MARKETS5 requirements within the organisation. The employee retention within the organisation is also dependent upon the fair wage policy adopted by P&G within the industry. The organisation's policies help the organisation in retaining the employees within the organisation and to deal with the limited labour supply within the tight labour market(Accenture, 2013). The organisation’s management effectively focuses on the human resource capabilities within theorganisationand accordinglyfocuseson thehumanresourceplanningwithinthe organisation, as the organisation focus on either recruiting the human resources from the external environment, in case of the loose labour market, where the organisation can effectively get the required manpower for the organisation or focuses on internal recruitment or providing the employees with training and development opportunities in case of the tight labour market. As developing such strategies within the organisation helps the organisation in effectively dealing with the market conditions and to meet with the industry requirements, along with maintaining the organisational efficiency(Chuang, et al., 2015). P&G hr planning activities are effectively focused on ensuring that the right employees are placed in the right position within the organisation and the effectiveness of the organisation is ensured. The organisation is among the leading organisations within the industry in the customer goods sector and has also achieved a high position in hiring and retaining quality workforce within the organisation. to ensure the effectiveness of the workforce within the organisation, the human resource management of the organisation effectively focus on valuating the competencies of its workforce as well as its human resource planning activities within the organisation so that the organisation goal to retain quality workforce can be ensured and achieved while working within the organisation(Azzone & Palermo, 2011). Human resource planning at P&G effectively focuses on ensuring diversity within the organisation, as diversity within the organisation helps the organisation in implementing innovative ideas as well as to improve the organisational efficiency within the industry. A diverse workforce contributes towards creative and innovative ideas within the organisation due to the presence of the employees from different backgrounds in terms of the culture, religion as well as experience level, therefore it contributes towards effective management within the organisation, P&G has a diverse workforce having 97,000 employees working for theorganisationandisfocusedtowardsachievingtheorganisationalgoalsand responsibilities(P&G, 2019).
LABOUR MARKETS6 The evaluation of the human resource planning at P&G also includes analysing the employee rights policies available within the organisation and is focused on developing policies so that the employees within the organisation can be provided with a safe and secure work environment where the employees can learn and develop their skills and are focused on integrating their personal goals with the organisational goals. P&G human resource policy includes focus on the employee satisfaction and protection of the employee rights within the organisation, developing trust and confidence among the employees, and providing them with an environment where they can effectively manage their work-life balance. The human resource planning at P&G ensures the efficiency of the organisation as well as the employees working within the industry so that the organisation can focus upon achieving the goals and objectives within the industry(P&G, 2020). HRmanagementatP&Geffectivelyfocusesontheindustryrequirementsandthe requirements of the employees within the organisation, and as a result, it is considered as an organisation with the effective and efficient workforce within the industry that is focused on the employee development as well as organisational performance improvement within the industry. The organisation human resource planning is developed effectively as per the human resource management theories, ensuring such theories are being applied within the industry helps the organisation in effectively managing the workforce within the organisation and to achieve the organisational goals and objectives within the industry(Cappelli & Tavis, 2018). The contingency theory of HRM effectively focuses on developing the human resource policies and strategies as per the industry as well as employee requirements, as the theory states that policy developed based on the requirements of the situation is applied only to the specific situation and will not necessarily bring the same result if applied to the situation with other requirementswithin theindustry. Therefore,itisrequiredthatthe organisation effectively focuses on the situational requirements and develops policies accordingly(Guest, et al., 2012). P&G effectively focuses on analysing the needs and requirements within the industry as the organisation’s management is effectively focused on achieving the goals and objectives and the organisational goals can be achieved if the employees within the organisation are satisfied and their needs and wants are being fulfilled. The organisation human resource planning process starts with analysing the requirements as per the contingency theory of the human
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LABOUR MARKETS7 resource management and accordingly develops strategies to provide the existing employees with training and development opportunities and to recruit new candidates from external sources(CEP, 2019). The organisation focuses on conducting seminars as a part of the recruitment process so that the newly hired employees within the organisation can be provided with a brief introduction to the company as well as their respective job roles, also the organisation focuses on the company’s mission and vision and the way the organisation operates within the industry. The use of the HRM theory within the organisation helps in ensuring that the management within the organisation effectively focuses on the key areas within the process and the overall efficiency of the process is ensured(P&G, 2020)(P&G, 2012). Human resource planning at P&G also includes employee retention as well as employee development as a part of the process and under such activities, P&G develops policies and strategies so that the effectiveness of the existing workforce of the organisation can be developed and the organisation can focus upon developing a team of effective and trained professionals within the industry. The development program for the employees is developed after analysing theircompetenciesand comparedwith theindustry requirements. The employeesatP&Greceivesanaverageof64 hoursof trainingperyearwithinthe organisation(Pollitt, 2011). The human resource planning activities at P&G is effectively developed by the management from the beginning stage by deciding upon the requirements and accordingly developing the policies and strategies within the organisation so that the workforce management within the organisation can be ensured effectively and the leaders and managers within the organisation can utilise the skills and competencies of the organisational workforce to achieve the organisational goals and objectives within the industry(P&G, 2012). The organisation within the industry is required to focus on analysing the industry to understand the labour market condition and accordingly develop policies and strategies to recruit candidates within the industry. As under tight labour market, the availability of the candidates within the industry decreases and accordingly the organisations require to pay more to the employees within the industry, due to which the organisation cost per employee increases within the industry, whereas in case of the loose labour market the organisations have the option to recruit employees from the available candidates within the industry as in
LABOUR MARKETS8 loose labour market the availability of the labour increases within the industry(Bonoli, 2017). P&G is a multinational organisation and a leader within the industry and effectively focuses on developing policies and strategies so that the required candidates can be recruited and retainedwithintheindustry.Theorganisationhaseffectivelydevelopedtrainingand development programs to improve the skills and competencies of its employees as per the industry requirements, also such practices helps the organisation in retaining its employees within the organisation also to dealwith in the tight labour market, as the organisation internal promotion policies and retaining of employees results in minimised requirements for hiring workforce from external sources.
LABOUR MARKETS9 References Accenture, 2013.Procter & Gamble Digitizes its Talent Management Processes through CustomizedTalentbyDesignSolutions.[Online] Availableat: https://www.accenture.com/t20150523T042743__w__/bw-en/_acnmedia/Accenture/ Conversion-Assets/DotCom/Documents/Global/PDF/Industries_2/Accenture-Procter- Gamble-Digitizes-Talent-Management-Processes-Design-Solutions.pdf [Accessed 17 March 2020]. Azzone, G. & Palermo, T., 2011. Adopting performance appraisal and reward systems: A qualitativeanalysisofpublicsectororganisationalchange.JournalofOrganizational Change Management,24(1), pp. 90-111. Bamberger,P.A.,Biron,M.&Meshoulam,I.,2014.HumanResourceStrategy: Formulation, Implementation, and Impact.2nd ed. London: Routledge. Bonoli,G.,2017.LabourMarketandSocialProtectionReformsinInternational Perspective: Parallel or Converging Tracks?.New York: Taylor & Francis. Cappelli, P. & Keller, J., 2014. Talent Management: Conceptual Approaches and Practical Challenges.Annual Review of Organizational Psychology and Organizational Behavior, 1(1), pp. 305-331. Cappelli,P.&Tavis,A.,2018.HRGoesAgile.[Online] Availableat:https://hbr.org/2018/03/the-new-rules-of-talent-management [Accessed 17 March 2020]. Cascio, W. F., 2015.Managing Human Resources.8th ed. Irwin: McGraw-Hill. CEP,2019.LatestNewsAboutTheProjectAndHrActivities.[Online] Availableat:https://www.poslodavacpartner.org/cep-news-detail/pg-an-example-of-how- employers-in-croatia-can-provide-a-global-quality-of-employment [Accessed 17 March 2020]. Chuang, H.-M., Liu, M.-J. & Chen, Y.-S., 2015. The Effects of Human Resource Capability and Internal Customer Satisfaction on Organizational Effectiveness.International Journal of Distributed Sensor Networks,11(7), pp. 1-10.
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LABOUR MARKETS10 Garavan, T. N. & McGuire, D., 2010. Human Resource Development and Society: Human Resource Development’s Role in Embedding Corporate Social Responsibility, Sustainability, and Ethics in Organizations.Advances in Developing Human Resources,12(5), pp. 487-507. Guest, D. E., Paauwe, J. & Wright, P., 2012.HRM and Performance: Achievements and Challenges.s.l.:John Wiley & Sons. Gumata, N. & Ndou, E., 2017. Labour Market Reforms, Inflation Expectations and the Banks’ Required Reserves Channel.Labour Market and Fiscal Policy Adjustments to Shocks,pp. 305-317. Kersley, B., Alpin, C. & Forth, J., 2013.Inside the Workplace: Findings from the 2004 Workplace Employment Relations Survey.Illustrated ed. London: Routledge. Klingner, D., Llorens, J. J. & Nalbandian, J., 2015.Public Personnel Management.London: Routledge. O. Weeks, K., 2013. An Analysis of Human Resource Information Systems impact on Employees.Journal of Management Policy and Practice,14(3), pp. 35-49. Ong, K., 2017.Vinitaa Jayson, Vice President of HR for Asia, Procter & Gamble, says there isasecrettoitspopularityamongjobseekers..[Online] Availableat:https://hrmasia.com/procter-gamble-building-from-within/ [Accessed 17 March 2020]. P&G,2012.P&GRanked#1forLeadershipDevelopment.[Online] Availableat:https://news.pg.com/blog/pg-ranked-1-leadership-development [Accessed 17 March 2020]. P&G, 2019.2019 Citizenship Report,s.l.: P&G. P&G,2020.OurHiringProcess.[Online] Availableat:https://www.pgcareers.com/hiring-process [Accessed 17 March 2020]. P&G,2020.Policies&Practices.[Online] Availableat:https://us.pg.com/policies-and-practices/employee-policies/ [Accessed 17 March 2020].
LABOUR MARKETS11 Pollitt, D., 2011.The fundamental values that drive HR policy at Procter & Gamble,s.l.: Human Resource Management International Digest,. Taylor, P. et al., 2012. Managing older workers during a period of tight labour supply. Ageing and Society,33(01), pp. 16-43. Vitasek, K. & Manrodt, K., 2012.Vested: How P&G, McDonald's, and Microsoft are Redefining Winning in Business Relationships.New York: Macmillan. Zhang, Y., 2019.Discussion on how to motive and retain employees in China by exploring thefactorsinfluencingemployeeenthusiasmatwork.[Online] Availableat:http://www.diva-portal.org/smash/get/diva2:1296602/FULLTEXT01.pdf [Accessed 17 March 2020].