Human resource management assignment identifying the HRM issues in Australian workforce
Task: Write a human resource management assignment on a contemporary news story about an organisation. Identify the key HRM issues raised and discuss them in relation to the relevant concepts, frameworks, and theories from the Unit; and make recommendations for the future.
Human Resource Management (HRM) is the practice of recruiting, hiring, deploying and managing an organization's employees. As stated by Stone (2020) In today's constantly changing business environment, the management of human resources is necessary for managing the competitiveness of business. In this regard, it is necessary to have a balance between the demand and supply of the workforce in the hospitality sector of Australia.
The present human resource management assignmentaims at the identification of HRM issues in the given news case scenario. This human resource management assignmenthas several sections, the first section is the summary of the news story about the HRM issues. The second section of the human resource management assignmentis about the HRM issues identified in the given news and it relates to several theories and models of HRM. The third section of this human resource management assignmentis about the application of concept linking with the literature which is associated with the HRM issues identified. The next section summarizes and concludes the entire learning from the report and after those specific recommendations are provided for managing such HRM issues.
2.0 Summary of the news storyselected for thehuman resource management assignment
From the news story selected for the human resource management assignment, it has been identified that the national worker shortage in Australia extends from the centre of the biggest cities to the most remote mountains. As stated by Ziffer (2022), Australia does not have enough workers to meet demand resulting in a shortage of workers. There are many job vacancies but the shortage is so much that business organisations unable to improve their productivity. As per the findings in the human resource management assignment there are several factors responsible for creating a labour shortage in the Australian job sectors. Migration, childcare and housing are primary factors making it harder for employers to find staff. As opined by Guest (2021), business analysts are speaking about such a kind of worker shortage in Australia because it is across all industries, all locations and all professions. According to the Australian Bureau of Statistics referred to for the human resource management assignment, there are 423,000 job vacancies in recent times are record high when compared with previous decades. For instance, Victorian resorts like Hoff Hut are also facing issues of labour shortage. Hospitality operation is run because it is difficult to retain customers and manage hospitality services, essentially due to the extensive labour shortage. Lack of affordable housing is another important factor, particularly in regional and coastal areas regarding the labour shortage. According to the news story, covid 19 pandemic has created a lot of impact on the labour shortage (Ziffer, 2022). It has been also identified from the new story that covid 19 acted as a catalyst that exposed everything. It has been also identified in the human resource management assignmentfrom the new story that the pandemic hit in early 2020, international students and people on working visas were urged to leave and that is the primary reason for immigration. As mentioned by Solomon (2021), improperworking conditions and lack of motivation are also other important reasons for this kind of labour shortage in Australia. There is also a lack of standard motivation, lack of support, lack of affordable childcare, lack of charity for crisis management and improper pensioners are the reasons behind such a labour shortage in Australia. In the case of Hoff hut, there is the extra cost is required to secure the accommodation for their staff resulting in increased costs that are not always supported by the hospitality business.
3.0 HRM issues identified in the human resource management assignment
Based on the news story selected for the human resource management assignmentcertain kinds of each other issue has been identified that Australian business-like Hoff Hut is also facing. All these issues are mentioned below:
Lack of employee security
Lack of employee security as per the human resource management assignmentis the most important factor resulting in a labour shortage in Australia specifically in the hospitality business sector. According to Zinatullin (2016), providing insufficient wages and job security to employees decreases employees' intention to work with organisations. Even employees are not given sufficient benefits during times of crisis like health crises during a pandemic, a housing facility for workers from a distance or financial crisis, resulting in a labour shortage.
Increased labour cost
Increased labour cost as per the human resource management assignmentis another important issue of labour shortage because most organisations do not place sufficient intention to secure the basic needs of their employees. According to Nankervis et al. (2021), the availability of housing is a big issue because hospitality businesses in Australia are unable to afford the cost of housing for their staff from other cities. Even the amount of minimum wage as per Australian labour compliances has significantly increased resulting in it being difficult for the business organisation to hold labour and retain them.
Poor motivation as per the human resource management assignmentis another important reason for the labour shortage in Australia with regard to the example of Hoff Hut (Ziffer, 2022). Business organisations are unable to provide efficient motivation to their increase by providing them different kinds of facilities. Providing improper facilities like crisis management, health issues and other kinds of economic issues are factors leading to high shortages. Lack of sufficient training and development is another important reason associated with the labour shortage in Australia.
Improper wage system
It has been also identified in the human resource management assignmentfrom the name story that the minimum wage of labour in Australia is $21.38 per hour. but the most business organisation for good to maintain the minimum for their labour makes them unsatisfied with their job (Haski-Leventhal, Rozaand Brammer, 2020). As a result of improper wage, reward and recognition systems labour does not find interest to work with the organisation resulting in a labour shortage.
Lack of standard compliance
Long working hours are another important reason for the labour shortage issue in Australia. According to Mark, Dr and Rohan (2019), under The Fair Work Act 2009 Australia, an employee can work a maximum of 38 hours in a week. But most organisations forget the complaints and standards and provide extensively what led to their workers even the working our earth sometimes exceed especially for a service industry. As per the human resource management assignment even there are no standard compliance systems followed by businesses resulting in the poor focus of labour towards the organisation.
4.0 Connection of issues with theory and model
HRM issues faced by organisations as mentioned in the human resource management assignmentcan be analysed with help of different theories and models. These theories and models are as follows:
Maslow's model of motivation
According to this theory, the motivation of employees strongly depends on the fulfilment of their basic five needs. According to Stone (2020), under Maslow's theory of motivation, the basic five needs of employees include physical needs, safety needs, social needs, self-esteem needs and self-actualisation needs. As per the human resource management assignment physical needs include food, sleeping and shelter but as per the news story, it has been identified that most of the organisations in Australia are unable to provide effective food and shelter for their employees who are from different cities. When compared to the safety needs most business organisations are also unable to provide basic job security and wage security to their employees resulting in decreased motivation and labour shortage. As mentioned by Haski-Leventhal, Rozaand Brammer (2020), the social needs of employees include cooperation and collaboration between them during times of crisis. From the news story, it has been identified in this human resource management assignment that migration, childcare and housing are primary factors that hindered employees to be socialised. The inability of the business sector in Australia to provide sufficient motivation to their employees results in decreased attention and engagement of them with business operations.
Reinforcement Theory of Motivation
According to the reinforcement theory of motivation, an individual's behaviour is a function of its consequences. As opined by Feather (2021), the performance of employees strongly depends upon the behaviour of Management towards them. From the news story, it has been identified in the human resource management assignmentthat business organisation in Australia is neglecting the well-being of their employees. Reward and recognition are the most important part of employees' motivation and engagement with organisations. But it has been identified in the new story that focus is not sufficiently given to the management of employees. According to the reinforcement theory, there are four behaviours placed by managers in workplace to motivate their employees, these are as follows:
- Positive Reinforcement
- Negative reinforcement
Positive reinforcement helps to improve employees' motivation when negative reinforcement decreases their attention towards their organisation (Mark, Dr and Rohan, 2019). From the news story, it has been identified in the human resource management assignmentthat negative reinforcement is highest in the Australian business sector because employees never focus on managing the needs of employees, especially during times of crisis. They Never focus on providing rewards and recognition to their employees resulting in work motivation and ultimately leading to a labour shortage.
From the overall discussion, it has been identified in the human resource management assignment that labour shortage is the most important issue faced by the business sector in Australia. HRM is actually the hiring, management and firing of staff for managing the overall performance of an organisation. But the Australian business sector was unable to provide the necessary motivation needs and demands of their entry resulting in a labour shortage. Migration, childcare and housing are primary factors making it harder for employers to find staff. It has been also identified from the overall human resource management assignmentthat there are 423,000 job vacancies in recent times are record high when compared with previous decades. Lack of employee security, increased labour court, covid pandemic and migration are the most important reasons for such kind of HRM issues faced by Australian businesses like Hoff hut.
Based on the issue identified in the human resource management assignmentcertain recommendations are provided to manage those issues. All these recommendations are as follows:
The Australian business sector needs to focus on improving development so that it can help them to meet their basic needs and engage them long-term with the organisations.
It is also recommended to implement standard compliances and legislation so that employees can get minimum wages against their working with the organisation
It is also recommended in this human resource management assignmentto incorporate a sufficient reward and recognition system so that it can help to attract lots of employees and motivate them towards their work process
Fulfilment of the basic needs of employees is also recommended so that it can help them to understand how their organisation values them and wants them for the long run.
It is also necessary to provide high motivation by implementing a suitable leadership style so that it can help to attract lots of employees and manage the labour shortage
7.0 Reference list
Ziffer, D. (2022). National worker shortage extends from the centre of biggest cities to most remote mountains. Retrieved from: https://www.abc.net.au/news/2022-06-20/worker-labour-shortages-ski-season-snow-job-vacancies/101160026 [Retrieved on 23rd August 2022]
Feather, N. T. (Ed.). (2021). Expectations and actions: Expectancy-value models in psychology. Taylor & Francis Group. https://ebookcentral.proquest.com/lib/cqu/detail.actiondocID=6689976
Guest, P. (2021). Labor allocation and rural development: Migration in four Javanese villages. Taylor & Francis Group. https://ebookcentral.proquest.com/lib/cqu/detail.action docID=6784178
Haski-Leventhal, D., Roza, L., & Brammer, S. (2020). Employee engagement in corporate social responsibility. SAGE Publications, Limited. https://ebookcentral.proquest.com/lib/cqu/detail.action docID=6734486
Mark, R., Dr, V. L., & Rohan, M. (2019). Fair work legislation 2019-2020. Thomson Reuters. https://ebookcentral.proquest.com/lib/cqu/detail.action?docID=5971173
Nankervis, A., Connell, J., Montague, A., & Burgess, J. (Eds.). (2021). The fourth industrial revolution: What does it mean for Australian industry. Springer Singapore Pte. Limited. https://ebookcentral.proquest.com/lib/cqu/detail.actiondocID=6699096
Solomon, R. (2021). Australia's engagement with economic and social rights: A case of institutional avoidance. Springer Singapore Pte. Limited. https://ebookcentral.proquest.com/lib/cqu/detail.actiondocID=6533378
Stone, R. J. (2020). Human resource management, 10th edition. John Wiley & Sons, Incorporated. https://ebookcentral.proquest.com/lib/cqu/detail.actiondocID=6727625.
Zinatullin, L. (2016). The psychology of information security: Resolving conflicts between security compliance and human behaviour. IT Governance Ltd. https://ebookcentral.proquest.com/lib/cqu/detail.actiondocID=4395809