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The Evolution of HRM

Discuss about the EMP in The Field of Human Resource.

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 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.

Global Changes Impacting HRM

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, 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.

HR Planning (HRP) and Its Significance

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).

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 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.

Activities of HR Planning (HRP)

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 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.

Conclusion

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). 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.

References

Aswathappa, K. (2013). Human resource management: Text and cases. Tata McGraw-Hill Education, pp. 133-150.

Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave, pp.156-182.

Brewster, C., Chung, C., & Sparrow, P. (2016). Globalizing human resource management. Routledge, pp. 234-250.

Budhwar, P. S., & Debrah, Y. A. (Eds.). (2013). Human resource management in developing countries. Routledge, pp. 344-360.

Cascio, W. (2018). Managing human resources. McGraw-Hill Education, pp. 10-40.

Dipboye, R. L., & Colella, A. (Eds.). (2013). Discrimination at work: The psychological and organisational bases. Psychology Press, pp. 104-124.

Hoque, K. (2013). Human resource management in the hotel industry: Strategy, innovation and performance. Routledge, pp. 11-30.

Langford, D., Fellows, R. F., Hancock, M. R., & Gale, A. W. (2014). Human resources management in construction. Routledge, pp. 23-40.

Nankervis, A. R., Baird, M., Coffey, J., & Shields, J. (2013). Human resource management: strategy and practice, pp.67-78.

Schermerhorn, J., Davidson, P., Poole, D., Woods, P., Simon, A., & McBarron, E. (2014). Management: Foundations and Applications (2nd Asia-Pacific Edition). John Wiley & Sons, pp.89-100.

Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., & Plimmer, G. (2015). Managing Employee Performance & Reward: Concepts, Practices, and Strategies. Cambridge University Press, pp. 90-106.

Storey, J. (2014). New Perspectives on Human Resource Management (Routledge Revivals). Routledge, pp.200-210.

Stredwick, J. (2013). An introduction to human resource management. Routledge, pp.123-140.

Vance, C. M., & Paik, Y. (2014). Managing a global workforce: Challenges and opportunities in international human resource management. Routledge, pp. 256-270.

Wilton, N. (2016). An introduction to human resource management. Sage, pp.1-20.

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