Explain how the drivers of globalisation influence the strategies used by business in Australia to achieve effective employment relations. - HSC - SSCE Business Studies - Question 27 - 2010 - Paper 1

Globalisation has transformed the business landscape significantly, and its drivers influence how businesses operate and manage employment relations in Australia. Here are some of the key drivers of globalisation and their effects:

1. Technological Advancements

Technological innovations allow businesses to reach a global audience and streamline operations. This includes the use of communication technologies that enable remote work and flexible employment arrangements. As a result, businesses in Australia can adopt strategies focusing on hiring diverse talent from various geographic locations, integrating digital platforms for better employee engagement, and enhancing productivity through technology-driven processes.

2. Trade Liberalisation

The reduction of trade barriers facilitates easier access to international markets. Australian businesses adapt by using employment strategies that promote competitiveness, such as investing in employee training and development to ensure that staff possess the necessary skills to compete on a global scale. This may involve a focus on performance-related incentives and fostering a culture of continuous improvement.

3. Global Supply Chains

Companies are increasingly operating within global supply chains, which require effective employment relations strategies to manage a diverse workforce. Businesses need to emphasize the importance of cultural competence and inclusivity, ensuring that their employment practices respect local laws and customs while meeting global standards.

4. Economic Factors

Changes in the global economy, such as shifts in labor costs and economic conditions, affect how Australian companies approach employment relations. In response, businesses might focus on strategies that include flexible work hours, outsourcing non-core functions, or developing partnerships with local firms to share resources and expertise, thereby adapting to fluctuating market demands.

5. Regulatory Changes

International agreements and local regulations are constantly evolving. Businesses must stay compliant while also seeking to enhance their employment relations. This could mean revising contracts, offering better employee benefits, and ensuring fair labor practices to attract and retain talent amidst regulatory scrutiny.

In conclusion, the influence of globalisation on employment relations strategies is profound. Australian businesses must be strategic to adapt to these external drivers, ensuring they cultivate an environment that attracts and retains the necessary talent to thrive in a competitive global market.