Essay: HRM Challenges of Labor Supply and Demand in Globalization

This essay delves into the critical aspects of human resource management, specifically addressing the challenges of labor supply and demand within the framework of globalization. It highlights the importance of workforce planning in navigating external and demographic challenges faced by Australian businesses. The essay examines issues such as talent management, the impact of salary variations, technological advancements, and the need for skilled labor. It also explores external challenges like governmental restrictions, political unrest, and legal compliance. The essay emphasizes the need for strategic human resource planning, including modifications to organizational resources, collaboration with other departments, and employee training. The essay also recommends consistent evaluation of performance to achieve competitive advantage. The document, contributed by a student, is published on Desklib, a platform providing AI-based study tools for students.

Running head: HUMAN RESOURCE MANAGEMENT
Essay on Challenges of Labor Supply, Demand based on globalization
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Introduction
Human resource management is an important aspect in every business. The parameter of
human resource management enables the business organizations to manage the performance of
the staffs in terms of making effective and judicious use of the human resources. This is also
applicable in the phase of challenges like the challenge of labor supply and demand. These
challenges are obvious in the ambience of globalization, stalling the productivity (Marchington
et al., 2016). In this phase, the organizational people need to make strategies and plans for the
achievement of effective solutions. Herein lays the effectiveness of “human resource planning”,
one of the aspects, which the essay would look into. The nature of these challenges is external,
which adversely affects the demography of the business organizations. The essay would
particularly focus on the external and demographic challenges, encountered by the Australian
business.
Discussion
Issues in managing workforce
The present era of business is competitive, making it difficult for the business
organizations to secure their market position. The brands are running blindly in the rat race for
grabbing the hot seat. This mentality of the marketers has compromised with the needs, demands
and requirements of the clients and customers (Sparrow, Brewster & Chung, 2016). The major
drive behind this compromise is the poor infrastructure, which aggravates the complexities of the
brands to deliver quality products. Absence of planning is the main reason behind this
incapability, which compels the brands to face intense competition from the contemporary

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brands. The following paragraphs enhance the clarity of the readers regarding the challenges
faced by the Australian brands.
The requirements of the organizations vary according to the specific tastes and
preferences of the customers. The labor demand and supply also varies according to these
requirements. However, if there is absence in the workforce planning, it becomes difficult for the
personnel to meet the demands of the stakeholders and shareholders (Pinto, 2015). Example can
be given of Westfarmers, where the managers faced the issue of poor talent management. The
staffs failed to make practical application of the learnt skills towards execution of the learnt
skills. Moreover, the managers emerged unsuccessful in managing the performance of the staffs.
This resulted in customer turnover in large extents, providing competitive advantage to the
contemporary brands. This issue indicates the necessity of planning right from the initial stages
of project. Before undertaking a project, the brands need to ensure the presence of adequate
workforce (Brewster et al., 2016).
The nature of the demand and supply curve is variable. The grounds of these variations
are salary hikes. Salary hikes in other neighboring countries attract the employees, which
compels the brands to lose their market position within the competitive ambience of Australian
market. Increased demand for the production of the quality goods and services simultaneously
increases the need for labor. Here, the example of Woolworths can be referred. More labors were
needed for serving crème egg ice cream to the customers. In terms of the labor supply, high
value for the efforts given attracts the labors (Albrecht et al., 2015). On the other hand, low
returns for the efforts given, results in less labor supply. The example of Coles can prove
appropriate. Here, the labors were promised high salary for the efforts they would give towards

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the betterment of the company. Staying true to the promise bestowed talented minds to the
company, resulting in the exposure of collaborative output.
Technological variations also disrupt the balance between the labor supply and demand.
The countries with advanced technologies require skilled and efficient labors. On the contrary,
the countries developing in technology also require skilled labors. However, if the brands do not
possess adequate workforce, the technological upgradation is of no use. Countering this, in the
present competitive ambience, technology is of prime importance. This is in terms of
systematizing the business activities (Kramar, 2014). Herein the example of Telstra can be given.
For providing the customers with quality telecommunication services, labors skills in technology
are needed. Latest and modern technologies reduce the burden of the employees regarding
execution of the allocated duties and responsibilities. However, if the employees lack the basic
technological skills, Telstra staffs would encounter the issues of complaints from the customers
regarding the provision of poor quality service. Absence of planning in the infrastructure is the
main issue, which results in the achievement of negative outcomes (Wingerden, Derks & Bakker,
2017).
Viewing it from other perspective, technology is also needed for the office staffs, who
file all the documents. Possession of computer basic skills is an advantage in terms of ensuring
the safety, security and privacy of the organizational data. For this, the managers of companies
like Telstra need to be cautious while recruiting the candidates. Taking practical tests would help
the managers to assess the capability of the candidates to make practical application of the learnt
skills in executing the allocated duties and responsibilities.

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Hostile relationship with the hiring managers is also a challenge for the companies and
organizations in terms of managing the workforce efficiently and effectively. This hostility
creates confusion in terms of the exact requirements in terms of recruitment and selection,
leading to conflicts (Marler & Parry, 2016). These conflicts stall the business productivity. The
aspect of low wage aggravates the intensity of these conflicts, which destroys the stability in the
relationship between the employees, employers and the managers.
External and demographic challenges
Australia is a densely populated country, where people from different cultures reside.
Like other countries, here also the needs, demands and requirements vary from person to person.
Census reports indicate the presence of labors with low skills migrating to the other countries for
achieving professional development. The census report also indicates the presence of highly
skilled labors struggling with the hardships of unemployment (Tansel, 2017). The Australian
brands such as Telstra, Coles and Woolworths face external challenges, the dimensions of which
are political, economic, social, technological, legal and environmental. The following paragraphs
deals provides an insight into these challenges.
Governmental restrictions in the execution of the import and export activities pose as an
obstacle for the Australian brands. Political unrest with the neighboring countries aggravates the
complexities regarding fulfilling the needs of the stakeholders and shareholders. Imposition of
tax tariffs on the import and export activities hampers the growth process of the brands. These
political unrests and the tax tariffs, gives rise to financial instabilities in the form of inflation,
high fluctuation in the prices of the raw materials and high exchange rates
(Theconversation.com, 2018). These instabilities make it difficult for the brand personnel to set

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prices of the products. Due to this difficulty, the purchasing power of the middle class customers
is highly affected, as they are struggling with maintaining the balance between the personal and
professional life.
The neighboring countries possess latest and modern technologies and needs highly
skilled labors from the Australia. This is a challenge for the Australian companies and
organizations if there is an absence of adequate labors, who are skilled and efficient. Lack of
knowledge regarding the basic computer operations is a loss for the brands in terms of enhancing
the efficiency in the business activities. Sometimes possession of highly skilled labors and lack
of latest and modern technologies is also a challenge for the Australian companies and
organizations in terms of enhancing the productivity (Abc.net.au, 2018).
Legal compliance is crucial for the companies and organizations in terms of averting
illegal scandals and issues. This is applicable for all the business aspects- products, consumers,
ethics and the ways in which the business activities are executed. For example, Data Protection
Act (1998) enables the brand personnel to secure the personal belongings of the stakeholders and
shareholders. Non-compliance towards the protection of the organizational data compels the
company personnel to loss trust, dependence and loyalty of the customers. consumer Protection
Act is also applicable here, as the main objective of the brands is to cater to the needs, demands
and requirements of the customers (Abc.net.au, 2018). However, in terms of securing the market
position in the competitive ambience, the needs of the customers is compromised. Consistency in
this aspect is a challenge for the brands to achieve competitive advantage over the contemporary
brands.

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Environment is one such parameter, which the companies and organizations need to
adhere for enhancing the corporate social responsibility. This is specially applicable for the
industries manufacturing energy. These industries emit large amount of smoke into the
environment, which adds to the existing pollution level. The people residing near the factories
are affected through the smoke. Along with these, the water bodies also gets polluted, which
destroys the life of marine animals. Negligent attitude of the personnel pose as a challenge in
terms of preserving the ecological biodiversity.
Recommendations
Every single difficulty would seem a challenge to the brands, if there is a lack of rational
approach towards the execution of the allocated duties and responsibilities. Apart from this, lack
of planning contradicts the systematic execution of the business activities. This rationality is
missing in the current mentality of the personnel in terms of securing their market position. What
the marketers fail to understand is that if they diligently serve the customers, their business
would itself grow. However, certain steps need to be followed for the achievement of growth in a
proper manner.
Human resource planning is the crucial element, which needs to be developed by the
brands. Focus needs to be placed on modifications of the current organizational resources.
Modifications would make the personnel aware of the additional resource requirements if any.
Even modifications need planning for taking the correct amount of supplies at the right time.
Taking the assistance of the other staffs would make the staffs aware of the appropriateness,
effectiveness and feasibility of the planned modifications. Collaborating with the other functional
units and departments would bestow a number of solutions for the problems, which the brand

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personnel encounter. Meetings and conferences would make the board panel aware of the
solutions planned by the personnel. Involvement of the board members is essential, as without
their approval the planned initiatives hold no value.
Internal replacement of the charts created for human resource planning needs to be done
tactfully. Lack of consciousness in this replacement would mean the personnel are adopting
wrong means for the overpowering the contemporary brands in the competitive ambience. On the
other hand, observing the steps of the contemporary brands and then making plans would be a
wise step in terms of securing the market position.
Providing training to the staffs would prove crucial in terms of upgrading their current
skills, knowledge and expertise. Inclusion of the basic management skills in the course materials
would make the staffs aware of the marketing basics. Along with this, provision of computer
training would broaden the perspective of the staffs towards the events taking place in their
surroundings. Taking post training tests would make the managers aware of staffs’ capability
regarding making practical usage of the learnt skills in the workplace operations. Evaluation is
also needed in terms of reviewing the appropriateness, effectiveness and feasibility of the
exposed performance. Maintaining consistency in the execution of evaluation would upgrade the
performance of the brands, enabling them to achieve competitive advantage over the
contemporary brands.

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