Factors Influencing Human resources Supply

A successful human resources strategy complements a company mission and goals so that what works for an industry grant won’t necessarily be suitable for your small business.  The factors influencing human resources activities are not static:  to maximize recruitment and retention, and to maximize employee issues, small business managers must continually monitor internal and external environmental factors and adjust human resources strategy accordingly.  In this paper the author is going to discuss factors that influence human resource supply.

Definition of Terms
Human resources according to the en,Wikipedia.org is the set of individuals who make up the workforce of an organization, business sector, or economy.  Human capital is sometimes used synonymously with human resources.  The whatishumanresources website www.whatishumanresource.com defines human resources as the individuals or personnel or workforce within an organization responsible for performing the tasks given to them for the purpose of achievement of goals and objectives of the organization which is possible only through proper recruitment and selection, providing proper orientation and induction, training, skills developments, proper assessment of employees (performance appraisal) providing appropriate compensation and benefits, maintaining proper labour relations and ultimately maintaining safety, welfare and health concern of employees, which is process of the human resources management.

According to Benjamin T (2013:1) competition is one of the factors that influence human resources supply.  He asserts that the extent of competition in your industry affects your company’s ability to recruit qualified workers industry giants find that candidates seek them out.  He says there is no need to spend money advertising each recruitment in such a case, because candidates will visit the company website of their own accord.  Small businesses typically don’t have the same branding power or company reputation, though, and need to actively seek qualified candidates for critical positions.  Benjamin T (2013:1) argues that in such a scenario, a human resources department will need to focus on developing recruitment materials and attending job affairs to promote the company and attract applicants.  Similarly, human resources should develop programs and incentives to retain key employees.

Don N. Mdr, Kasim N and Shamsudin A (2012:181) adds organization strategy as one of the organizational internal factor which can influence human resources supply.  Organization strategy includes organizational financial strength.  The ability to do away with subcontracting and directly employ labour from the labour market on a permanent employ basis.

The website www.businessteacher.org.uk says promotions of employee from within are one way for increasing the level of the existing work group.  The website says while considering this aspect to assess the number of likely entrants into a particular job level, it is important to study th trends of past promotions.  It is also necessary to evaluate the feeder stock to assess its potentiality for promotion, training needs etcetera.  Other aspects of employee feeder groups, such as their retention analysis, age and performance profiles, skills and knowledge profiles should be studied.  Since it is desirable to fill positions from within through internal promotions, depending on the needs, strategies need to be planned to facilitate promotions from feeder groups.  Internal promotions creates employee satisfaction and therefore a factor that can influence human resources supply.

Heil U (2003:1) say employee compensation is another factor that contributes to influence human resources supply.  He asserts that compensation administration is a segment of management or human resource management focusing on planning, organizing, and controlling the direct and indirect payments employees receive for the work they perform.  Compensation includes direct forms such as basement, and incentive pay and indirect forms such as vacation pay, deferred payment, and health insurance.  The ultimate objectives of compensation administration are; efficient maintenance of a productive workforce, equitable pay and compliance with state and local regulations based on what companies can afford.  Compensation of employees impacts positively or negatively on human resources supply.

Law and regulations impact the remuneration of employees in many areas, such as working hours and compulsory time-off paid and unpaid, minimum wage, overtime, compulsory bonuses and employment at will.  Benjamin T says legislation impacts all human resources activities.  The government typically dictates how long a business must retain personnel records and other employee data, what can be stored, and how.
The other factor which can influence the human resources supply are the employee unions.  Trade unions are formed to safeguard the interests of its members/workers.  Human resources activities like recruitment, selection, training, compensation, industrial relations and separations are carried out in consultation with trade union leaders (Chand S) www.yourarticlelibrary.com

Chand S in his article found on www.yourarticlelibrary.com talks of organization culture as an influence to human resource supply.  He says each organization have its own culture that distinguishes one form another.  Culture may be understood as sharing of some core values or beliefs by members of the organization.  There is often conflict between organizational culture and employee’s attitude.  Conflict usually surfaces because of issues such as personal goal versus organizational goal, disciple versus autonomy, rights versus duties etcetera.  Some conflicts have their bearings on human resources activities in an organization.
Economic forces also influence the supply of human resources which includes the growth rate and strategy, industrial production, national and per capita incomes, money and capital markets, competitions, industrial labour and globilisation.  All these forces have significant influence on wage and salary levels.  Growing unemployment and reservation in employment also affects the choice for recruitment and selection of employees in organizations.

Technological advances affect also the functions.  First technology makes the job more intellectual or upgraded.  Second, it renders workers dislocated if they do not equip themselves to the job.  Third, job becomes challenging for the employees who cope with the requirement of technology.  Fourth, technology reduces human interaction at the workplace.  Finally job-holders become highly professionalized and knowledgeable in the job they perform.

Lastly Chand talks of demographic variables as a contributing factor to the supply of human resources.  Demographic variables include sex, age, literacy, mobility, etc.  modern workforce is characterized by literate, woman and scheduled  caste and scheduled tides workers.  Now, workers are called knowledge workers and the organizations wherein they work are called ‘knowledge organisations’
As such, the traditional line of distinction between manual and non-manual workers is getting blurred.  Employees are demanding parity in remuneration and responsibility among various categories and level of employees

The author had listed technological advances, organizational culture, the work of the trade unions, demographic variables, laws and regulations, economic forces, promotion of employees, employee compensation, competition in the job market and organizational strategy as some of the factors which can influence human resources supply.  With these there is a need for intensive planning.  Planning is very essential for future human resource needs and possibilities.

Chand S          Environment in Human Resource Management:  Internal and External Environment – Accessed online on 26/02/15 www.yourarticlelibrary.com/hrm/environment-in-human-resource-managemeninternal-and-external-environment
Ivangenich J.M, 1995, Human Resource Manangement, Chicago, Irwin Press
Human Resource Planning (HRP):  factors affecting labour supply www.ivythesis.typepad.com/term-paper-topics/2010/07/human-resource-planning-hrp-factors-affecting-labour-supply.html

Etiwel Mutero holds a Bachelor of Science Honours Degree in Records and Archives Management through the Zimbabwe Open University and a National Certificate in Records and Archives Management from Kwekwe Polytechnic.You can contact him on 00264817871070 or etiwelm02@gmail.com

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