internal factors
- size of organization ⇒ bigger organizations need more HR (i.e. more training)
- strategic direction of organization ⇒ i.e. if growth is priority
- Organizational structural ⇒ HR can figure out redundancies
- Finances ⇒ got to have enough money to keep and hire people
- Motivation ⇒ low motivation = high labour turnover rate
- Corporate culture ⇒ want good culture
external factors
- demographic change: study of population and population trends
- things like average age of population, ethnicity distribution, gender distribution, education levels, household incomes, retirement age
- Change in labour mobility
- how much workers want to move between locations for their employment
- occupational mobility: willingness of employee to switch jobs. occupational immobility ⇒ rules and regulations
- geographical mobility: how much an employee wants to relocate to another location for work. i.e. truck drivers must travel long distances
- hard to get international mobility of labour
- improve labour mobility by offering improved pay and benefits
- how much workers want to move between locations for their employment
- Immigration
- migrant workers
- expatriates ⇒ foreign workers, go for salaries
- advantages of expatriates
- ease skills shortages; use when you cannot find local skilled workers
- flexible work structures: migrants are willing to work at different times
- marketing opportunities: they can give niche marketing ideas
- personnel opportunities: new ideas
- Net social benefits: migrant workers pay income tax
- Flexi-time
- workers work some hours and choose when to work, as long as their work gets completed
- used to maintain work-life balance
- potential lack of accountability and productivity
- Gig economy
- short term, or one-off contracts
- advantages of gig economy
- worker freedom and flexibility. Choice of part time employment
- significant income when you work multiple jobs
- better work life balance
- businesses have lower cost of production, because don’t have to pay benefits
- lower costs of production for business = more price competitive products
- disadvantages
- reduces need for full time workers in traditional economy, limits career development (potentially ⇒bad point but it’s in InThinking so ok?)
- don’t have fixed employment contracts, lacks job security and stable income
- start up costs (i.e. car to Uber)
- no benefits
- got to be tech savvy to benefit from gig economy
These are factors influencing change. But what are the 2.1 Reasons for resistance to change