Essays on Labour Demand and Supply at Amcor Limited Case Study

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The paper 'Labour Demand and Supply at Amcor Limited" is a good example of a management case study. Workforce planning and human resource management play a crucial role in the success of the business. According to the International Personnel Management Association (2002, p. 7), organizations position themselves for success through workforce planning by aligning human capital with the business direction. The methodology of workforce planning involves analyzing the current workforce, identifying future workforce needs, and comparing present and future needs. I doing so, organizations are able to establish ways in which they can achieve competitiveness.

Luoma (1999, p. 769) argues that the application of strategic workforce planning has been the contributing factor of success for many organizations. Through strategic workforce planning, organizations are able to identify issues affecting labour supply and demand; and respond to them accordingly. However, workforce planning in the public sector is not adequately utilized (Freyens, 2010). This paper seeks to assess factors influencing workforce demand and supply at Amcor Limited. Factors affecting labour demand The labour market provides a means by which organizations and potential employers find labour for their needs.

This, in turn, creates labour demand, which is the engine of employment growth (Guasch, 2009 p. 29). However, the rapport between employment growth and output growth is affected by institutional and efficiency structures of labour market through the impact of labour costs. More so, labour demand is affected by unit labour costs and the level of economic activities among other factors. At Amcor Limited, factors affecting workforce demand are not unique given that the firm’ s demand curve for labour derives from a downward-sloping portion of the firm’ s revenue product.

The slope provides a guide to the factors that are likely to shift it. According to Parkashin (2005, p. 41), the marginal product of labour and price of a good that the labour produces is equal to the marginal revenue, thus, anything that changes the two factors that contribute to marginal revenue will definitely shift the curve. As such, planning for a possible shift in the workforce or recruitment procedures is essential. This allows for accommodations of possible arising scenarios from the shifts. In this context, Amcor Limited would use scenario planning as a means to align the possible changes to organizational goals.

For instance, if the company intends to change quantities of materials used in production, it is likely that the marginal product of labour will shift. If Amcor plans to increase its packaging limit, then the increase in the marginal product would result in an increase in the demand for packaging workforce. The situational change in this context warrants scenario planning, which allows for evaluation of the most viable option that addresses needs arising from the change (Nankervis et al, 2011, p. 134).

From this understanding, a decisive argument arises holding that; an upsurge in the use of one aspect of production escalates the demand for another. On the other hand, the outputs are supplementary to one another. Using scenario planning, Amcor Limited assumes a structured way of thinking about the future. This involves visualizing the future production of packaging equipment, as well as, packaging activities. As one of the world’ s leading packaging firm, an increase in packaging activities would either mean adopting efficient packaging technologies, increasing number of workforce, an increasing number of work hours, or a combination of any of the three options (Cummings, & Worley, 2015 p. 69).

Therefore, scenario planning facilitates the evaluation of different possibilities and viable alternatives required to meet the visualized need.


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