Macro-Trends Affecting the Economy and the Emerging Trends in the Mining Industry - Coursework Example

Management Name Date Course Introduction Most of the organizations are currently facing different management issues. This can be attributed to the global changes in the economic trends as well as the changes in the specific industry. However despite the issues affecting different organizations and industries, there are also opportunities that are emerging. The availability of opportunities plays an essential role in determining the potential of the industry (Hatten, 2015). The opportunities as well as problems have greatly influenced the management practices. The performance of an organization is therefore dependant on the ability of the management to indentify the trends and ensuring that appropriate decisions are made. The paper discusses some of the macro trends affecting the economy and the emerging trends in the mining industry in relation to the managerial trends. Macro trends affecting the economy The aging workforce is one of the macro trends affecting the economy in general. In most of the industries, the workforce is mainly comprised of the people who are above the age of 50. This can be attributed to the lack of employment opportunities for the young people and the youth. The productivity of the workforce in most cases is dependent on the age. This is common for industries such as mining which requires a lot of manual and mechanical labour. The aging workforce is also as a result of longer life expectancy and low birth rates that is experienced in most developed countries (Nel, 2011). In most of the developed countries, the life expectancy is on the increase as a result of the improvements in the healthcare sector. As a result of the high life expectancy, the people tend to work for many years which may exceed the retirement period. Reduced labour is therefore becoming evident in some countries and this has a direct impact on the economy. The age related expenditure is also on the increase and this may end up affecting the economy. The amount required to pay the pensioners is on the increase and hence affecting the economy. Some of the developed countries are already finding it difficult to maintain their pension system which has led to massive cuts. In order to solve this problem, the succession plan is required in order to bridge the age gap which has a negative impact on the economy. The sector such as the mining industry is increasingly being affected by the aging workforce. Emerging trends and issues in the mining industry PESTLE Analysis Political In the mining industry, the political situation is one of the major factors that are affecting its operations. The political situation at times makes it difficult for the industry to grow. The government of the day could be opposing the mining industry for various political reasons and hence affecting its growth. The current trend has seen a lot of political interference in the industry. In Australia, the political class supports the industry. This can be attributed to Tony Abbott visits on the mining sites as well as officiating the opening of new mines (Dashwood, 2014). In the United States of America, the president has also been forced to approve different mining projects despite facing opposition from the political class. In the Middle East and Africa, mining has been used as a source of finance for political activities. The industry is therefore facing a lot of challenges in terms of political interference. However, a stable political environment plays an important role in supporting the growth and development of the industry. The taxes in the industry are also on the increase. Most governments including the Australian government is boosting the mining taxes. This is greatly affecting the revenues and profitability of the industry. Economical The emerging trends in the economy are greatly affecting the mining industry. The market is increasingly becoming volatile for the products of the industry. This has contributed to losses in the industry. The mining industry requires huge amounts of capital for carrying out the projects. The industry is therefore facing challenges in terms of obtaining adequate finances. The risks in the industry are too high which discourages most of the financial institutions from offering financial support in the form of loans (Singh, et al, 2014). The gap between the supply and the demand in the industry is too wide and this has contributed to price fluctuation. As a result of price fluctuations has force most of the mining companies to focus on risk management as opposed to growth and development. The skill gap is also widening in the industry and this has created a labour crunch. Most of the people working in the industry are above the age of 50. The economic factors are impacting negatively on the growth and development of the industry. Social The mining industry is currently experiencing a high level of activism than any other time. A lot of demonstrations are being held by the activists who are against the mining operations. This has greatly impacts the growth and development of the industry. As a result of the high levels of activism, the mining companies are forced to invest heavily in the corporate social responsibility (Dobele, et al, 2014). This is for the purposes of ensuring that it supports the local communities. The amount being invested for social corporate responsibilities is on the increase and this is also affecting the profitability of the companies. Some of the mining companies have had to close their mines in certain locations as a result of protests by the local communities. Industrial action by the workers is also on the increase in the mining industry. This has strained the relationship between the companies and their employees. Huge amounts have also been paid to the employees in the form of pay rise and hence affecting the profitability of the companies. Some of the industrial actions have turned violent leading to deaths with an example being the Marikana Massacre in South Africa (Dashwood, 2014). Technological The use of technology in the industry has been on the increase. Technology is being used in the industry for the purposes of improving on the daily operations. Technology has played an important role in promoting safety as well as efficiency in the industry (Singh, et al, 2014). Technology is therefore providing an opportunity for the growth and development of the industry. Technology has also led to the automation of most of the activities. The exploration activities have also been enhanced through the use of technology. The trends in the industry indicate that technology is increasingly being used in the industry. Technology is also playing an important role in terms of cutting operational costs. Legal The legal environment is increasingly impacting negatively on the mining industry. The number of legislations is on the increase as a result of pressures from the activists and well as scientific studies. Most of the legislations are targeting the environmental aspects in the industry. The health and safety legislations are also in place which aimed at ensuring that the industry is able to comply with the safety standards (Singh, et al, 2014). Strict legislations are in place and this has slowed the growth and development of the industry. The failure by some companies to comply with the legislations has led to their closure. Managers have also been fined and some jailed for failing to comply with the legislations that are in place. The current trend indicates that the industry will be subjected to more legislation in future. Environmental Some of the mining activities have adverse effects on the environment. The industry has largely been blamed for environmental pollution as well as emission of huge amounts of carbon dioxide. The adverse effects of some of the activities of the industry have contributed to climate change (Pellegrino, 2012). Some of the activities of the industry have also led to the destruction of the marine environment as well as death of aquatic animals. The companies are required to put in place measures to ensure that its activities do not have adverse effects on the environment. The environmental concerns are set to affect the growth and development of the industry. Managerial trends Change management is one of the most important managerial aspects that affect most of the industries. The mining industry is also affected by the trends in change management. In the current organizational environment, changes are taking place from time to time. Technology is one of the contributors of change. Some of the practices that the employees were used to is being replaced by the use of technology. A lot of importance and focus is currently being placed on change management. Most of the organizations have put in place structures that are aimed at aiding the change management process. Personnel who are experienced in change management are being employed in organizations on a full time basis (Hatten, 2015). Their main task is to assist the employees top manage the changes that takes place from time to time. This is considering that some of the changes take place within a short period of time. Change management is therefore becoming an important aspect in the industry. A lot of resources are being channeled to efforts to enhance change management processes. Change management process is therefore important in terms of ensuring that the employees are able to embrace new practices and activities. The current trend indicates that change management strategies are being developed for the purposes of avoiding employee resistance. The employee resistance usually occurs when the employees are not ready to embrace the changes being implemented. In other instances the employees go back to their old routines even after the changes have been implemented. Change resistance affects the operations of an organization as well as its goals and objectives of implementing the change. Training of the employees is one of the measures that most of the organizations are utilizing for the purposes of combating resistance to change (Tax, 2012). The training of employees plays an important role in equipping them with the knowledge required for managing the change. It is also important in ensuring that the employees are prepared for the change. In the mining industry, change management is an important aspect. The employees are usually trained on the issues of change management due to the constant changes in the operational methods. The changes in laws and legislations also required the management to change its strategies as well as operational methods. The current trend indicates that the success of the organization is dependent on its ability to manage change. This is considering that some of the changes may be positive while other changes may be negative. Conclusion In conclusion, it is evident that various trends affect the economy as well as industries. The aging workforce is one of the factors that affect the general economy. The aging workforce is set to create a gap in the labour market. It is evident that the mining industry is facing a lot of challenges. The economic challenges are likely to have negative impacts on the industry. Political interference as well as the strict laws and regulations affect the growth and development of the industry. The industry however has an opportunity of using technology to enhance its operations. It is evident that the environmental issues affect the growth and development of the mining industry. The industry is set to shrink as a result of the challenges that it is facing. It is evident that change management is an important managerial problem. The change management problems may affect the ability of the organization to embrace new activities and operations. List of References Nel, P, 2011, Human Resource management, Oxford University Press, Oxford. Hatten, T, S, 2015, Small business management: Entrepreneurship and beyond, Cengage Learning, London. Tax, S, 2012, Recovering and Learning from Service Failure, Sloan Management. Pellegrino, C, 2012, Climate change accounting and the Australian mining industry: Exploring the links between corporate disclosure and the generation of legitimacy, Journal of Cleaner Production, 36, 68-82. Singh, K, et al, 2014, Undisclosed Chemicals-implications for risk assessment: A case study from the mining industry, Environment International, 68, 1-15. Dobele, R, et al, 2014, An examination of Corporate Social Responsibility implementation and stakeholder engagement: A case study in the Australian mining industry, Business Strategy and the environment, 23(3), 145-159. Dashwood, H, 2014, Sustainable Development and industry self regulation developments in the global mining sector, Business and Society, 53(4), 551-582. Read More