Environmental Analysis Report: An Organization in Australia

Executive Summary

A critical analysis of the internal and external factors that affect the recruitment of Target and the selection process within Australia is provided in this report. Target is one of the major retailers within Australia. It has about 300 stores in this region. The size of the workforce of this company is approximately 800 employees. Among the internal factors that affect the selection process and recruitment in this company includes its corporate culture and HRM practices. These factors have proven to have positive influence on the process within the company. Among the identified external factors that affect these processes include the demographics of the job market, economic factors and the image of the company.

Introduction

Company Background

Target Australia Pty also called TAP is a chain of departmental stores that is situated in Australia. It is owned by Wesfarmers. Generally, this company has about 300 stores in Australia. Among the products of this company include clothing, cosmetics, home wares and electronics among others. Its workforce comprises of approximately 800 employees who work in various departments. The recruitment and selection process occurs in the headquarters office that is situated in Geelong, Victoria. The employees of this company are valuable assets. As such, the company offers them an enjoyable and rewarding career. The approach that is taken by this company in its selection and recruitment processes is professional. TAP is also committed to providing quality and effective training to the new staffs in a great environment.

Review of Literature on Recruitment and Selection

Bernthal and Rioux (1999) noted that recruitment is related to the process via which firms attract and identify potential candidates for a job both within and outside the company. This process enables companies to evaluate such individuals for future employment’s purposes. Once the candidates have been identified, the selection processes start. These include gathering, assessing and measuring information about the candidates’ qualifications for different positions.

This process enables companies to employ individuals with the right skills and abilities which enhance performance in their jobs (Rioux & Bernthal 1999). The selection and recruitment process that Target uses values diversity. Diversity is a vital strength for any company currently and in the future. However, the selection and recruitment process is affected by external and internal factors that will be analyzed in this paper.

Factors Affecting the Effectiveness of Recruitment and Selection

External Contextual Factors

Economic

The unemployment rate in Australia has been high over the past years. Job creation on the other hand has been sluggish. This region has experienced a significant decline in full-time jobs. There has been an increase in the number of the available part-time positions. Currently, the number of unemployed youths as well as the overall number of people who need more work is high. For instance, in 2013, there was a loss of about 27900 jobs in October. In the same month of October, part-time job positions increased by 28900. Thus, there was a net result of 1000 new positions and this is below the economists’ estimates.

Such changes in the economic environment require proper understanding among organizations in order to determine the way job seekers compete for jobs. Additionally, high rates of unemployment increase competition because job demand remains high in comparison to the available jobs in the economy. These are some of the major factors that affect Target in regards to salary rates since there is high labor force flow. As such, the recruitment and selection processes are influenced by such factors. The present changes in the job market within Australia present an advantage to this company because attracting more potential candidates is no longer challenging for this company with the current high rates of unemployment.

Job Market Demographics

Despite the fact that high rate of unemployment in Australia has led to an increase in labor supply, more so among the youthful professionals, it is likely to have a downwards change with advances in the population age (Temple & McDonald 2008). Young, talented and competent people are an important asset or resource for companies in Australia since they have a huge labor flow. These companies can now select and hire potential candidates to work in different departments from a large pool of unemployed young, talented and competent individuals.

The Company’s Brand Image

A positive image means that public appreciation of this company is expressed by individuals who consistently speak in favor of this organization. Good reputation gives a company a favorable view from the public. This is very important since it promotes an organization (Lievens et al 2007). Therefore, the brand image of a company affects its selection as well as the recruitment process. Highly reputable firms attract more candidates for their job opportunities. A positive image gives a company a great opportunity for attracting talented employees for different job positions. This also places a company in a better position to retain such employees.

In this aspect, Target stands a better chance since the public which include potential candidates for job positions have high regard for it. Most youths in Australia admire it and they would like to be its employees. This increases the chances of this company finding talented employees for different positions. In addition, this company is popular in Australia more so because of its exceptional CSR commitments and HRM practices.

Internal Contextual Factors

HRM Practices

Diversity is a highly valued aspect in Target Australia. It is highly regarded in the recruitment and selection processes. This company takes inclusiveness as an important factor that will lead to its success in the contemporary business environment. Taking such an approach in the recruitment process enhances the reputation of this company among the members of the Australian public. This increases the number of talented individuals who apply for different job positions in this company.

Similarly, TAP has always been committed to ensuring continuous culture of learning. It has been able to develop employees by taking such approaches. This has always been an important element of the core strategy that this company uses to enhance the satisfaction of customers (Barney 2001). Programs that recognize employees are also common in this company. These offer informal and formal acknowledgement in celebrating the success of team members.

In its attempts to provide information access to potential candidates about job opportunities, this company provides information offline and online. Interested candidates are able to view information about the available job opportunities through its website. Essentially, the approach of providing information enhances the diversity value since it removes discrimination while creating an opportunity for the interested individuals.

Corporate Culture

Shahzad (2012, p. 977) notes that organizational culture has a common system of value which all members of an organization uphold regardless of their personal beliefs or backgrounds. Such individuals have shared beliefs and values which enable the firm to match forward with all employees headed for a similar direction. The culture of TAP is aimed at delivering style and quality every day with an aim of satisfying customers. This culture stresses on not only the needs of the customers but also valuing employees who are the basic assets of the company. Additionally, the belief of this company is that business success is based on human resources’ contributions. As such, an effective approach in the treatment of employees is highly regarded because it enhances the provision of better services to customers (Denison 2000).

In addition, the culture of Target is dedicated to providing support to communities as well as meeting the satisfaction of stakeholders who include customers, suppliers and employees. Additionally, shoppers in Australia increasingly like shopping at Target. Therefore, Target attracts more competent and talented candidates since they like being associated with this organization due to its excellent reputation.

Conclusion

This discussion has shown that there are several external and internal factors that influence the selection and recruitment process within Target Australia. Among the identified internal factors include the organizational culture, industrial factors and HRM practices. The identified external factors include changing demographics, corporate image and economic factors. The discussion has demonstrated how these factors affect the recruitment and selection process at Target both negatively and positively.

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References

Barney, B 2001, Firm resources and sustained competitive advantage, Journal of Management, vol.1, no.17, pp.99-120.

Denison, R 2000, Bringing corporate culture to the bottom-line, Organizational Dynamics, vol.13, no.2, pp.5-22.

Lievens, F, Hoye, G & Anseel, F 2007, Organizational identity and employer image: towards a unifying framework, British Journal of Management vol.18, no.10, pp.45-59.

Rioux, S & Bernthal, P 1999, Development dimensions international: recruitment and selection practices survey report, HR Benchmark Group vol.2, no.2, pp.1-19.

Shahzad, F 2012, Impact of organizational culture on organizational performance: an overview, Interdisciplinary Journal of Contemporary Research in Business, vol.3, no.9, pp. 975-985.

Temple, J & McDonald, P 2008, Demographic and labor supply futures for Australia, Australian Demographic and Social Research Institute vol.1, no.1, pp.1-40.