Impact of Global Changes on Human Resource Management and the Role of Human Resource Planning

This essay discusses the impact of global changes on human resource management and the role of human resource planning in integrating such changes into the organisation's daily operations to remain relevant and survive in the competitive business environment.

Running head: HUMAN RESOURCE MANAGEMENT
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Human resource management
Name:
Institution:

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Introduction
Employees remain the most crucial and essential resource for any organisation, and the
way workers are managed through an allocation of roles and duties dictates the success or failure
of the organisation. There are a full recognition and belief among the business managers across
Australia that employees are the paramount asset that a company has (Nankervis et al., 2013, pp.
45). Hence, it is vital to note that with changes being witnessed in the global economy, most
organisations are striving to align themselves to the changes through the introduction of efficient
management policy in the field of human resource. The HR department implements the
employee management policy through a process known as HRM. Hence, the main of EMP
implementation is to improve the workers’ performance by ensuring higher productivity helping
in the organisation to maintain the competitive advantage in the market (Bratton and Gold, 2017,
pp. 70).
For leaders to counter the threat of labour demand and supply posed by global economic
factors, the organisation focuses on how to make strategic adjustments in its HR department
through the process of HRP (Wilton, 2016, pp. 10). HRP is significant activity in the broader
HRM process that aims at strengthening employees through internal activities like succession
planning and replacement charts. Therefore, the purpose of the essay is to focus on the global
changes that impact on the HRM as well as the role of HRP process in integrating such changes
into the organisation's daily operations to remain relevant and survive in the competitive business
environment.
The concept of HRM has evolved from traditional ways of viewing and managing the
employees within an organisation. Evolution of HRM has been profoundly influenced and
facilitated by continuous and progressive changes of not only the internal environment but also

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the external environment (Storey, 2014, pp. 205). Indeed, the difference in the external
environment has prompted many businesses in Australia to shift their ways of operations to meet
the demands of the changing world. Thus, HRP focuses the external factors that influence the
future of the organisation and how to cope with such elements. With the constant advancement in
the business environment, an organisation should be aware of the changes, the consequences of
such changes to the business and apparently the technique of transforming themselves effectively
to counter the moves (Schermerhorn et al., 2015, pp. 95). Therefore, some of the factors
impacting on the employee demand and supply include globalisation, environmental and
demographic changes.
Globalization can be described as an inevitable phenomenon that has brought the world
together through various ways like an exchange of information, ideas, knowledge, goods,
services and culture. The speed of global integration has turned into a much faster encounter
characterised by massive growth in transport, science, communication and technology.
Globalization has led to the creation of World Trade Organization to fight for employee rights
and many organisations across the world are trying to seriously the employees’ welfare as
outlined in the WTO constitution to avoid employee turnover (Vance and Paik, 2014, pp. 266).
Globalization has also created global job opportunities thus allowing the employee from
one country to work in a foreign country (Brewster et al., 2016, pp. 242). As a result, the threat
of losing employees due to high demand id employee is creeping in. Globalization has also led to
the spread of job regulation laws such as equality, diversity and safety at workplaces. Hence,
many organisations are planning their HRM activities to recruit their employees equally,
employing people from a diverse culture with diverse growth ideas and also offering safety
policy for employees (Budhwar and Debrah, 2013, pp. 352). By abiding by such laws,

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organisations are experiencing massive growth to compete in the global economy maximise
supply. Globalization has been therefore a driving force for an organisation to borrow ideas from
other country meant to improve their employee relations to enhance performance, profit and
massive growth of the organisations.
Environmental changes can be described best as changes in the business environment
within which the business operates. Environmental changes have also forced many organisations
in Australia to change their HRM activities to meet the requirements of new moves (Nankervis et
al., 2013, pp. 72). They affect the organisation by influencing decisions which in turn affect
strategies and performance. Thus, such forces or factors affecting HRM in Australia can be best
understood through PESTEL analysis, that is, political, environmental, technological, economic
and legal factors.
For instance, the relationship between the Australian government and other countries is a
political factor shaping the HRM activities of many organisations. The states allow trade with
other neighbouring nations, the mobility of labour as well as diffusion of business ideas between
Australia and other countries (Vance and Paik, 2014, pp. 265). For a company to maintain the
competitive advantage, many organisations are reviewing their employee management policy to
be able to retain their employees and avoid the threat of losing such employees to organisations
in the neighbouring countries.
Economic factors such as economic growth mean that the Australia economy is growing
very fast contributing to competition and higher wage demands by employees. Due to such
incidents, HR departments have been prompted to review their employee strategy by adding
them salaries to avoid them leaving their jobs (Shields et al., 2015, pp. 100).

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Technological advancements and innovations in Australia are profoundly affecting the
HRM system for companies since the introduction of new technologies in doing business has
forced the organisations to review its HR by recruiting and training more people to handle such
changes (Hoque, 2013, pp. 20). Therefore, many organisations are forced to plan on how to
prepare and develop employees to manage the new technology in business' operations.
Environmental changes such as weather, climatic changes and pollution are affecting how
the business reviews their HRM (Nankervis et al., 2013, pp. 72). Hence, the company is seeking
to train more experienced employees who will bring ideas on how to reduce the level of pollution
through recycling of waste materials to maximise their profits.
Legal factors and changes are impacting on the organisational HRM in Australia. Legal
aspects and legislation such as health and safety policy for employees have forced many
organisations in Australia to review their HRM systems to accommodate such rules and
regulations (Stredwick, 2013, pp. 131). Therefore, most organisations in Australia will consider
factors leading to environmental changes to analyse and identify various possible threats and
opportunities of the industry and make multiple adjustments in their HRM policy for the purpose
remaining productive and gain a competitive advantage.
Demographic changes can be described as a change in employment patterns regarding
gender, culture and age (Dipboye and Colella, 2013, pp. 112). The increased diversity in labour
forces has compelled the organisation to make significant changes in the way they plan and
managing employees (Cascio, 2018, pp. 25). Some aspects of demographic changes such the
number of the ageing population are Australia is changing the way the HR departments are
managing the situation from the point of planning their pension scheme to recruiting and
employing younger employees to replace the ageing employees. Increased number of

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unemployed graduates and the globalised workforce is another demographic change that is
making the HR departments for an organisation in Australia to review and create a new plan for
their EMP (Vance and Paik, 2014, pp. 263). It means that with increased globalisation, qualified
employees are moving freely to seek jobs abroad forcing the HR departments to invest more on
recruiting fresh graduates from the vast population the unemployed youth to join their
organisations (Langford et al., 2014, pp. 30). Therefore, the demographic changes experienced in
Australia leaving a gap which the HR department need to fill through the selection and
recruitment of effective, efficient and productive employees for assured organisational growth.
Due to the above-discussed factors, it is evident that Australia is facing a threat of higher
labour demand than supply. Such incidents have forced most businesses in Australia to review
Employee Management Policy through human resource planning to counter the threat of low
labour supply (Bratton and Gold, 2017, pp. 172). HRP can be defined as a process of ensuring
that the organisation's human resource is efficiently planned with the aim of achieving
organisational integrated plans, goals or objectives for maximum growth. Therefore, through
HRP, the HR department focuses on various activities aimed at ensuring the labour demand and
supply is at equilibrium. Such activities include selection, training, recruitments and
development of appropriate employees to steer the organisation forward through the production
of high-quality products and maximisation of profits.
Staffing can be defined as “a function by which managers build an organisation through
recruitment, selection and development of individuals as capable employees” (Vance and Paik,
2014, pp. 263). It is vital to note that staffing involves acquiring the right personnel to fill all the
positions ranging from operative to managerial positions. Due to globalisation, most employees
in Australia are seeking greener pastures in other countries and companies with better

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opportunities (Vance and Paik, 2014, pp. 263). Hence, to fill that gap the HRP process will be
concerned with ensuring that various positions within the company are filled with the right
personnel suitable to deliver higher levels of productivity within an organisation.
Recruitment is another activity found in the HRP process within the HR department.
Recruitment, therefore, can be defined as “the process of finding and attracting capable
applicants for employment” (Aswathappa, 2013, pp. 141). The process begins when a company
starts recruiting new employees until when applicants for a various position submit their
applications (Aswathappa, 2013, pp. 141). The HR department engages in the process of
selecting the successful candidates from a pool of applicants. Therefore, due to the ageing
population and globalisation of the workforce, many organisations in Australia are planning on
how to recruit new employees to meet the labour demand and fill the positions left as a result of
workers the companies for other places.
Through HRP, the HR department participates actively in the process of selecting the
right people from a set of applicants to fill the various positions within the organisations. The
method of selection ensures that the organisation chooses dedicated and most suitable employees
who will steer performance and deliver the desired results within an organisation (Shields et al.,
2015, pp. 95). The process of selection involves giving or the jib requirements and interview to
get the best skills for the organisation. Therefore, the choice is an activity used by the HR departs
to address the issue of labour demand and supply which is posing a significant challenge due to
environmental changes in Australia's economy.
The HRP process also involves employee training and development to counter the threat
of labour demand. Training can be defined as a technique of increasing and enhancing the
employee skills to undertake a specific role or do a particular job (Brewster et al., 2016, pp. 245).

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As a result of technological advancements and innovation being witnessed globally, many
organisations in Australia are striving to equip their employees with necessary skills to handle
and use such technologies in managing the businesses operations for sustainable growth.
Employees' motivation is the last activity of HRP in ensuring that the organisation thrives
in the competitive economy by meeting the labour demand and supply. Due to the competition
being witnessed in Australia's business environment, many organisations have realised the aspect
of poaching the best employees from other companies leading to a short in supply of employees
with specific competencies. Consequently, the HR department in various organisations has
engaged themselves in the motivation of employees through rewards and incentives to attract and
retain their best employees (Shields et al., 2015, pp. 98)
In conclusion, due to the rapid changes in an environment within which organisations
operate, the issue of labour demand and supply is posing a massive threat to the organisations.
Since the HR department has a role in managing employees, it has engaged in the process of
HRP ensuring that organisations address the challenge successfully. Hence, the essay covers the
various factors leading to a shortage in labour supply and also the techniques used by multiple
HR departments to address that challenge to make the organisations relevant and competitive in
the current global economy.

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