HRM Unit 4 Assignment: Labour Market, PESTLE Analysis, and Retention

This assignment is a comprehensive report on Human Resource Management (HRM), focusing on Unit 4 concepts. It begins by defining the labour market, differentiating between unskilled, semi-skilled, skilled, and professional labour. The report then delves into PESTLE analysis, explaining how political, economic, social, technological, legal, and environmental factors influence business operations, with an example using UBER. The internal labour market is discussed, explaining how it works within a firm. Furthermore, the assignment provides practical examples and calculations of employee turnover and retention rates, illustrating how to measure and interpret these key HRM metrics. The assignment covers the purpose and functions of HRM in workforce planning and resourcing, the strengths and weaknesses of recruitment and selection, and factors affecting HRM decision-making. The report aims to apply HRM practices in a work-related context.

Unit 3: Human Resource Management
Unit code : Y/508/0487
Unit type : Core
Unit level : 4
Credit value :15
Lecture :03
Ms. Dunisha Senevirathne
Lecturer
MBA (UK)
Chartered Associate Member – CIPM (SL)
Certified Business Accountant – CA (SL)
Member – AAT (SL)

Learning Outcomes
By the end of this unit a student will be able to:
1. Explain the purpose and scope of human resource management in
terms of resourcing an organization with talent and skills
appropriate to fulfill business objectives;
2. Evaluate the effectiveness of the key elements of human resource
management in an organization;
3. Analyze internal and external factors that affect human resources
decision-making including employment legislation;
4. Apply human resource practices in a work-related context.

Pass and merit and distinction criteria For this section
P1 Explain the purpose and the functions of HRM, applicable to workforce
planning and resourcing an organisation.
P2 Explain the strengths and weaknesses of different approaches to
recruitment and selection.
M1 Assess how the functions of HRM can provide talent and skills
appropriate to fulfill business objectives
M2 Evaluate the strengths and weaknesses of different approaches to
recruitment and selection.
D1 Critically evaluate the strengths and weaknesses of different approaches
to recruitment and selection, supported by specific examples.

What is a Labour Market
The labor market refers to the supply and demand for
labor, in which employees provide the supply and
employers the demand. It is a major component of any
economy, and is intricately tied in with markets for
capital, goods and services.

A labor supply curve shows the number
of workers who are willing and able to
work in an occupation at different wages. ...
A labor demand curve shows the number
of workers firms are willing and able to hire
at different wages.

Types of labour in the labour markets
1: Unskilled Labour
2: Semiskilled Labour
3: Skilled Labour
4: Professional

Types of labour in the labour markets
1: Unskilled Labour - Unskilled labor is a segment of the
workforce associated with a limited skill set or minimal
economic value for the work performed. Unskilled
labor is generally characterized by a lower educational
attainment, such as a high school diplom.
2: Semiskilled Labour - having or requiring less training
than skilled labor and more than unskilled labor.

Types of labour in the labour markets
3: Skilled Labour - Skilled labor is a segment of the
work force with a high skill level that creates
significant economic value through the work
performed (human capital). Skilled labor is generally
characterized by high education or expertise levels
and high wages.
4: Professional – A professional is one “engaged in
one of the learned or skilled professions, or in a
calling considered socially superior to a trade or
handicraft”

PESTLE
All organizations need to identify external factors within their environment that
could have an impact on their operations.
A popular tool for identifying these external factors is the PESTLE Analysis, which
can be used to help you consider Political, Economic, Social, Technological,
Legal, and Environmental issues.

Many people look to business analysis tools to help them make the
right decisions for their organization. Very often, business owners are
unsure whether they should proceed with a new venture. Doubts of
“will it work?” and “what if I fail?” flood their minds.
• Political factors account for tariffs and regulations affecting your venture,
such as the cost of selling a product or service abroad.
• Economic factors help determine how much people will pay for your
product or service.
• Sociocultural factors give insight into the demand for your product or
service. For example, a popular accessory in one country might flop in
another (due to differing sociocultural values)
• Technological factors tell you whether a target market is ready for your
product or service

 Legal factors help you understand the rules and
regulations you’ll have to meet to sell your product or
service.
 Environmental factors encourage you to look at your
product or service in the context of the delicate
environment.
Overall, these factors give you a very strong picture of
how the greater business environment will determine
the success or failure of your venture.

Political
Economic
Social
Technological
Legal
Environmental
Political: These factors determine the extent to
which a government may influence the economy or a
certain industry.
- Government policies, term and change
- Trading policies
- Funding, grants and initiatives
- Wars, terrorism and conflicts
- Elections and political trends
- Internal political issues
- Inter-country relationships
- Local commissioning processes
- Corruption
PESTLE Analysis for UBER