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Organizational Rewards

In: Business and Management

Submitted By stafoste
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Individual Assignment #1 1. Derived Demand can be defined as a demand for a specific good or service that has resulted from a demand from another good or service. When it comes to strategic human resources planning, it can be viewed as, the more of a good or service that is demanded by the market, the higher the demand will be to obtain the labour to provide that good or service. 2. When looking at Stonewall Industries “Derived Demand” is displayed as follows: Gypsum wallboard was a commodity in the industry and the demand for it was based on the number of houses going up in a given year, and interest rates. The demand for wallboard increases when houses are starting to be built, but demand falls when interest rates for the houses increase because investment funds decrease. In order for Stonewall to remain in the black in their competitive market they decided to introduce an additional division that produced vinyl siding. The hopes for the plastics division was that it would be less vulnerable in the industry than the gypsum wallboard was because they could offer a 40-year guarantee for the product. 3. Environmental factors that needed to be considered by the Senior Executive Team during Human Resources Planning activities include:
Location – The oldest and smallest plant belonging to Stonewall Industries was located in Vancouver in a location that did not give room for expansion. If they were to close the plant and expand onto the Calgary plant they would be looking at laying off employees that had been with the company for over 25 years. Labour costs were higher in the Vancouver plant than any other plant in the company.
Competition – In the construction industry, gypsum wallboard is viewed as a commodity and the only main thing that makes a difference to the market is the cost. The Senior Executive Team need to make sure that any changes in price…...

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