Are Skills the Answer to Australia’s Competiveness? (For Human Resource Management)Student’s Name: Instructor’s Name: Course Code & Name: Date of Submission: Are Skills the Answer to Australia’s Competiveness? (For Human Resource Management)IntroductionThe level of competiveness of a country is determined by many factors. Key among the many factors is the availability of the factors of production, which are the forms of capital. They include land, labour, enterprise and capital. Since the four factors of production form the basis for the development of industry, the government and other stakeholders involved must invest equally in all of them.
Failure to invest in either one of them creates an imbalance in production; hence the production levels do not reach the maximum limits. The gradual disinvestment in either one of them leads to a gradual crisis which ultimately leads to a major crisis. The clack of competitiveness in some countries in the world has been led by this action. Key among the misdoings of many governments and corporates is their failure to invest in labour factor of production. The labour factor of production is the factor which is responsible for ensuring that corporations and governments are able to live up to their goals and objectives (MacDonald, R., 2011, p. 426).
This is due to the fact that the labour section is the one which is responsible for the implementation of the various strategies which have been put in place. There are many ways in which the organizations and governments have failed to invest in labour. Key among them is their failure to uphold the generation, and development of skills in the workforce. This ultimately leads to low production which consequently translates to a gradual loss of competitiveness ((Skills Australia, 2012, p. 6).
The following paper takes a sharp focus into the relationship between skills and competitiveness with respect to Australia’s situation. Argument for skills as an answer to Australia’s competitivenessAs pointed out above, Labour is one of the factors of production. For an organization or country to perform well in its productivity, the labour force in the country must be competent enough to support the production and labor demands of the market (MacDonald, R., 2011, p. 426). Therefore, the lack of a competent workforce translates to low productivity and consequently lack of competitiveness.
The competence of a labour force is based on the skills which are available in the labour force; the more skilled it is, the more competent it is. For this reason, skills have a direct impact on the competitiveness of a country. Taking a look at several countries which have seen a reduction I competitiveness for instance the United Kingdom, it is clear that the countries have an insufficient supply of skills. This is the same case with Australia.
This situation explains why countries are luring skilled people into their countries for instance the Australian government is giving work permits to skilled foreigners and the Green card program in the United States of America Argument Against skills as an answer to Australia’s competitiveness