1. Define and explain the significance of the term ‘derived demand’ as it applies to Strategic Human Resources Planning. (5 marks)
Derived demand is the demand for a product/services occurs as a result of a demand for another immediate good or service. When apply this concept on labour demand, the more a company's product or service the market wants, the higher the demand for labour to involve in the production process. The essence of strategic human resources planning is to align human resources planning organization's business strategy. This means company cannot perform their personnel forecast solely based on the product demand because there is some other factor that will affect the product …show more content…
Legal factors are laws and regulations that the company has to abide with. Since all of the production employees are members of the United Gypsum and Allied Workers International Union (UGAWIU), human resources department has to plan ahead for the terms and conditions in the collective agreement. For instance, it has to comply with the Employment Standard Act for the maximum number of work hours per day, unionized workers' job classifications and wage rates, vacations and vacation pay, statutory holiday pay and working on a statutory holiday, and seniority. If the collective agreement did not draft appropriately or the terms were unfavorable to the unions, there would be an outbreak of strike which can costs a severe loss of productivity and revenue.
For the plan on closing down the Vancouver plant, the HR planning needs to be very precise and accurate calculation of the severance package and has to follow the conditions under common law precedent. If the severance package were miscalculated or did not fulfill the contract requirement, the company may face significant litigation cost.
(3) demographic/ labor factors
Demographic factors are the characteristics of the employees includes the age, gender, deaths and