2.

1 LABOUR SUPPLY

2.1.1 SUPPLY OF HUMAN RESOURCES

Human Resource Management The strategic approach to the effective management of an organisations workers so that they help the business gain a competitive advantage.

-Recruit capable, flexible and comitted people

AIMS TO

-Managing and rewarding their performance -Developing their key skills to the benefit of the organisation.

Demographic changes AFFECT Potential supply of labour

EFFECT OF HAVING GOOD HR

Productivity, AIMS TO
-Get the right number of people with their right skills, experience and competencies in the right jobs at the right time at the right cost.

Human resource or workforce planning Analysing and forecasting the numbers of workers and the skills of those workers that will be required by the organisation to achieve its objectives.

Quality,

New ideas, better service.

DEMOGRAPHIC CHANGES
Natural population growth (birth rate> death rate)

OPPORTUNITIES
EASIER to recruit good staff as the working population increases. HIGH supply of human resources in long term. EASIER to recruit good staff at lower rates of pay. Highly qualified staff might be recruited from other countries. Older staff may be more loyal and reliable than.

CONSTRAINTS
Take time to give impact to any business or companies.

Net migration (immigration > emigration)

Ageing population (the average age of the population INCREASES) Women (HIGH involvement in jobs) Flexibility of workforce (MORE flexible /more multiskilled) Unemployment ((HIGH)

Brain drain of qualified and experienced staff to other countries will reduce competitiveness. Immigrants may need more training, e.g. in language and cultural issues. Older staff may be less flexible and adaptable.

Increase supply of workers.

Increase supply of human resources.

Maternity leaves reduce productivity, increase intake of part-time workers which will induce more cost. Workers may not be specialized in particular task. the May induce costs of training.

Potential supply economy.

of

labour

in

If jobs are lost in one Mobility of workers industry/region, workers (HIGH mobility of workers) are willing and able to move to other jobs

Increase supply of labour.

LABOUR MOBILITY

Economic efficiency) Loss of expertises.

Function: keep structural unemployment low

Occupational mobility of labour

Able to move to different jobs requiring different skills. Factors affecting: The acquired attributes of a worker Age Specialization Discrimination

Geographical mobility of labour

Able to move geographical region to take up new jobs . Factors affecting: Family and friends Relocation costs Language and culture differences Fear of the unknown

LABOUR MOBILITY
keep structural unemployment low
Occupational mobility of labour Able to move to different jobs requiring different skills.
Developed economies -HIGH level of home ownership -HIGH skill levels in one occupation may not equipeed in other industries. Emerging market -home ownership is low -LOW skill levels mean that workers can undertake low skilled job in many industries.

Geographical mobility of labour Able to move geographical region to take up new jobs