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Management of People In Organisations

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Introduction

Management of People In Organisations Question 1. Increasingly, personal financial circumstances will require men and women to delay their retirement, whilst, at the same time, the declining birth rate will result in fewer young people entering the labour market. Discuss the implications for both organisational human resource planners and government policy makers of these demographic changes. Critically evaluate the respective roles of government and business in developing an effective labour market. Throughout the 20th century labour market conditions were continually changing. However, it is the impact of the declining birth rate and low mortality figures that now pose the greatest challenge to human resource planners and government policy makers. This paper shall consider the implications of these demographic changes on the government and organisations, and how those responsible can adapt their attitudes and policies, so ensuring an effective labour market capable of sustaining a growing economy and supporting us all into old age. Working conditions have generally improved resulting in falling hours, an increase in real wages, greater flexibilty and an increase in the female proportion of the workforce (Lindsay 2003 pp 133-144). For many jobs were for life, starting work as young as 14, exiting the labour market at 60 or 65 with sufficient pension income to support their retirement. However, this traditional work culture is currently scarce. Todays workforce want to be in greater control of their lives and demand ever increasing quality time away from the workplace. Unfortunately these attitudes present additional problems in creating a contented, productive and effective labour market. ...read more.

Middle

However, during the 1990s it became apparent that demographic changes would lead to skill shortages. The changing nature of the workplace with a declining, male dominated industry, and the growth in the service sector, traditionally the realm of women, presented even further challenges. Further legislation and incentives were needed if the inactive labour market (housewives/husbands, single mums or dads, the disabled,etc) were to be encouraged to enter (or re-enter) the labour market. The introduction of the Disability Discrimination Act 1995 sought to encourage and protect disabled workers. It became illegal to discrimante not only against employees, but also applicants, because of any disability they have. Despite opposition by the then Conservative government to the EU's Working Time Directive 1993, regulations were issued in 1998 limiting the number of hours an employee can be made to work. However, the right to opt out was secured giving workers more control over their time. At around the same time, and to avoid putting families under financial duress, assistance was available from government resources to supplement income. This was initially known as Family Credit but is now entitled Working Family Tax Credit. The introduction of the Minimum Wage and training initiatives such as the New Deal Programme sought to further encourage the inactive to contribute to society. Unfortunately for organisations the administrative burden this has created has long been the source of conflict between government and business. Additional disputes arise when addressing pension provision. ...read more.

Conclusion

2002 - based population projections for the United Kingdom. Government Actuaries Department. Organisations should, and indeed must, see this as a vast source of labour and not allienate older workers. Mature employees have not only experience on their side but the loyalty of most cannot be faulted. As many will be empty-nesters, mature workers offer a degree of flexibilty not available in other age groups. I support the view of Dychtwald (1997 pp 271-275) who wrote that "mature workers are more productive and reliable than those who are young." The challenges facing governments and organisations in maintaining an effective labour force are apparent and far-reaching. No one entity is wholly responsible for ensuring these changes are managed effectively. Governments may seek to reduce the reliance on the state for pension provision and other forms of support but organisations will not carry this burden alone. Individuals within the labour market are being encouraged to consider their own responsibilities. The majority of people would like to retire, if not earlier, then at the normal retirement age. Unfortunately this is probably not going to be the case for most. The need to carry on working into retirement will be a necessity. This bodes well for organisations who will suffer from the demographic changes that will soon surface. Orgainisations that reconsider their long term planning and strategies and adopt a flexible approach to working patterns offering employees the opportunity to multiskill, and effectively utilising the skills, experience and loyalty of mature workers have the greatest chance of success. Those that will not, or cannot change may find they have no bargaining power when seeking new or replacement workers. ...read more.

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