Stonewall Industries

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Define and explain the significance of the term ‘derived demand’ as it applies to Strategic Human Resources Planning. (5 marks)
Derived demand is described as a requirement for one product that is produced due to the purchase of another product. This happens when consumers purchase goods to further their production and their purchases are due to the demand of a final product. An example of this is when the demand for housing is high; therefor the demand for lumber and other materials would be high to finish the final product. If the demand of housing would drop, so would the sales and demand of the needed materials.
Derived Demand applies to Strategic Human Resource Planning for organizations to forecast the demand of what’s needed.
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Globalization
This is the growth in flows of trade and financial capitol across the borders. It affect sovereignty, prosperity, jobs, wages and social legislation.
Political and Legislative Factors
Both Governments, provincial and federal influence the business environment through political programs that changed the laws and regulations. HR professionals at Stonewall Industries would need to continuously monitor legislative changes and ensure compliance with legal requirements.
Technological Factors
This includes tools, machinery, equipment and software. Technology also has the ability to transform the organizational culture of how work is done.
Labor Market
The Labor Market influences an organization’s ability to implement strategy. This is where Stonewall Industries would recruit its employees. The number of people available for work depends on factors such as unemployment rate, geographic migration and graduation rates from educational institutions.
Generational Differences
This one would affect Stonewall Industries as most of their workers are near retirement, and have been working there for over 20 years. They would have to be aware of how many employees will be leaving, and watch the environmental factors for availability in new employees. Etc.
Identify and explain the various techniques for forecasting labor supply and labor demand. What can organizations do in the
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