Labour Force Management

Labour Force Management

Introduction
Labour force is the collective sum of the number of persons working for an organization,
providing labour in exchange for remuneration. The term can also be applicable for the working
population in a geographical area. The term generally does include employers and management
and usually refers to those who are directly involved with manual labour. A labour force in a
company can be of two types, Formal and informal (Baum, et al. 2016). Formal labour refers to any
form of employment that is structured and paid for in a formal fashion. Formal labour in a
country impacts the gross national product of country. Informal labour is generally an
arrangement which is not formal in the sense that it is legally binding and is always unstructured
and unregulated. For this report the workforce of the hospitality industry will be analysed with
focus on external labour supply, industrial relations, labour force analysis and forecasting
techniques.
External Labour Supply
An organisation that has a rapid growth rate and diversification tends towards newer areas of
operation and is unable to fill vacancies internally has looked into outside sources. The tendency
to fulfill positions externally is generally referred to as external labour supply (Goh, and Lee, 2018).
An organisation that grows rapidly anticipates its needs and looks towards outside sources of
supply, taking into consideration the current market trends. Important factors that should be kept
in mind when discussing about external labour supply are net migration both internal and
external in the company, education level of the workforce in general, demographic of the
population in the geographical areas in which the company operates, technological development,
mobility of the population, technological developments, demands for specific skills,
unemployment rates, actions of competing employers, government policies and economic
forecasts (Baum, et al. 2016).
There is a critical imbalance in the supply of skilled labour the hospitality industry of Australia
and it is frequently noted in many other industries that are in direct relation to the hospitality
industry. The Hospitality industry needs both skilled and unskilled labour to function properly.
The Disbalance lies in the ample availability of unskilled labour but unavailability of skilled
labor. Thus external sources have to be seeked in this case. The industry also depend on external
sources for positions of temporary impotence in the industry (Manoharan, and Singal, 2017). For
example there is no need for a permanent electrician in employment of a hotel but external