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Assessment 1: Individual Case Study







Individual Case Study

Question 1

Staffs are needed for the successful operation of any organization. However, the effects of supply and demand have an effect on the relationship between employer and employees. The demand and supply of general practitioners (GPs) and registered nurses (RNs) therefore has an effect on how Regional Care (RC) will relate to its staffs. The supply of GPs is constrained within the labor market within which RC operates. There is greater demand for such staffs than there are within the market. This may demand that the HR manager develops competitive employment terms for the GPs. This challenge in recruitment may demand that GPs are offered competitive salaries, working hours and other perks (Losey, Meisinger and Ulrich, 2005).

Such issues are further accentuated by employee retention challenges. The greater demand for GPs and subsequent competition for such labor may present retention issues within RC. HR managers further need to develop competitive policies to cushion their organizations against poaching of the existing labor supply (Upenieks, 2005). For instance, they may need to offer good working terms as well as career development programs to their GPs for their successful retention in the organization.

The supply and demand of RNs within the labor market is marked by rather different characteristics. Firstly, the supply is convoluted within the labor market. There are more registered working nurses in the territory than RC requires. This supply is characterized by the relatively high unemployment numbers within NSW as compared to the other states. This may result in less competitive terms of employment for these staffs. For example, their wages will most likely be less than those found in other states, for the same employment positions. The supply may also result in RC increasing work hours as well as reducing other perks in order to maximize productivity units from these staffs (Upenieks, 2005). In essence, the increased labor supply may give the organization’s management an upper hand in labor relations (Losey, Meisinger and Ulrich, 2005).

Secondly, retention of RNs within Regional Care may be poor as a result of the labor supply and demand characteristics. Due to immediate supply of staffs, management may have no issue in replacing the nurses (Upenieks, 2005). It is seen that the management has an upper hand in labor relations. This therefore mitigates the challenges arising from poor retention policy (Losey, Meisinger and Ulrich, 2005). However, the organization is characterized by an efficient working environment and culture. For example, the organization has good working hours for the nurses, as opposed to the rest of the labor market. This has made the organization a desirable employment partner. This should increase staff retention in the case of nurses.

Question 2

The demand and supply of staffs has a direct correlation to employee demands in their work environments (Losey, Meisinger and Ulrich, 2005). The current labor market dictates that there is greater demand for GPs than the market can supply. Higher demand for skills usually results in increased rewards for individuals possessing these skills. This would grant the GP staffs the upper hand in negotiating employment demands from human resources. For example, a GP would demand improved remunerations from the organization in order to reward their skills, which are in great demand. The GP would also demand other benefits such as improved retirement benefits, career development and work hours from the organization to emphasize their importance towards the organization. Inadequate responses from the HR would most likely result in poor retention and poaching of talent from other organizations (Larson and Hewitt, 2005). The management would feel compelled to respond as efficiently as possible to the presented demands. It would need to respond for the purposes of successful retention and productivity from the GPs (Larson and Hewitt, 2005).

Question 3

Regulatory intervention within the labor market is present in many countries, including Australia. This is usually seen in the form of setting legislation and formation of new regulatory bodies (Caballero, 2004). Governments and their regulatory bodies, such as the Fair Work Ombudsman, usually intervene for various purposes (Feldmann, 2009). Firstly, they intervene in order to correct market failures. This is seen through the failure of labor supply and demand to provide an efficient working relationship between employers and employees (Agell, Keen and Weichenrieder, 2004). This often takes place in the case of higher supply than demand of staffs. For example, labor problems between management and staffs, in the form of poor working conditions, safety issues and other grievances, may result in regulatory intervention towards a solution (Agell, Keen and Weichenrieder, 2004). Such interventions are required for the maintenance of worker safety in relation to currently acceptable standards in Australia and the international level as well.

Secondly, regulatory intervention is seen when governments seek to increase the economic well-being of their citizens. In such cases, they may pass legislation that improves the remunerations granted to staffs within organizations (Almeida and Carneiro, 2005). An example is the implementation of minimum wage legislation in Australia. This is especially important for casually-employed workers who are not granted similar benefits to their full-time counterparts (Almeida and Carneiro, 2005). They are thus able to maintain an acceptable standard of living through regulatory intervention and improved benefits (Lewin, Kaufman and Gollan, 2010). Thirdly, regulatory bodies may intervene in the labor market for the purposes of improving employment levels. This is seen through the entry of the Government in provision of services to the market. Such interventions result in increased employment of under-employed or unemployed individuals (Feldmann, 2009). This also has the effect of balancing out the forces of supply and demand within the market (Caballero, 2004).



Agell, J., Keen, M. and Weichenrieder, A. (2004). Labor market institutions and public regulation. 1st ed. Cambridge, Mass.: MIT Press.

Almeida, R. and Carneiro, P. (2005). Enforcement of labor regulation, informal labor and firm performance. 1st ed. Washington, D.C.: World Bank, Development Research Group, Growth and Investment Team.

Caballero, R. (2004). Effective labor regulation and microeconomic flexibility. 1st ed. Cambridge, Mass.: National Bureau of Economic Research.

Feldmann, H. (2009). The unemployment effects of labor regulation around the world. Journal of Comparative Economics, 37(1), pp.76–90.

Larson, S. and Hewitt, A. (2005). Staff recruitment, retention, & training strategies for community human services organizations. 1st ed. Baltimore, Md.: Paul H. Brookes Pub. Co.

Lewin, D., Kaufman, B. and Gollan, P. (2010). Advances in industrial and labor relations. 1st ed. Bingley: Emerald.

Losey, M., Meisinger, S. and Ulrich, D. (2005). The future of human resource management. 1st ed. Alexandria, Va.: Society for Human Resource Management.

Upenieks, V. (2005). Recruitment and retention strategies: a Magnet hospital prevention model. Medsurg nursing: official journal of the Academy of Medical-Surgical Nurses, pp.21–27.

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Originally posted 2017-08-07 20:02:56.



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