•+economic+influences+—+economic+cycle,+globalization

• economic influences — economic cycle, globalization

Economic influences -economic cycle -demand for labour is determined by the demand for goods and services in the economy. -in expansion or boom, labour shortages may develop causing employers to compete for employees by offering higher wages. Unions may use strong bargaining power to gain wage increases that can cause ↑ inflation. -in contraction or recession, demand for gods and services ↓ causing business to reduce their workforce. This limits the capacity for wage increases.

-structure change -structure change in the economy has resulted in growth in the service sector eg e-commerce, fitness professionals, counsellors, aged care specialists, travel industry, human resources, call centre management, personal services, information technology. -these areas have traditionally been dominated by women.

-globalisation -many Australian businesses compete with subsidiaries of TNC’s. there is a need to retain motivated and effective staff and make continuous improvements in productivity, costs, innovation, quality and customer service. -some TNC’s use standardised global management employment contracts for all countries in which they operate. –aim is to maintain harmony within the organisation and to attract the best managerial talent, they need to provide internationally competitive and standardised packages covering salary, housing, children’s schooling, and other resettling costs. -increased role of international institutions eg the International Labour Organisation (ILO) and trade blocks (WTO) in promoting trade between countries which adheres to social justice principles. -globalisation can impact on ER by contributing to job losses (displacement can result in resentment –ER need to reduce adverse reaction by making separation less traumatic) and job growths (↑ in groth impacts on HR planning –recruitment supply may be scarce causing pressure to increase wages.

+**//__ Qantas and JB Hi Fi (Make sure you mention GFC - ????? __//**