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Managing People

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2.0 QUESTION 1
2.1 External Factors
Various external factors can impact the ability of a business or investment to achieve its strategic goals and objectives. These external factors might include supply and demand,labor market, political social and unemployment rate.
Example of external factors are:
2.1.1 Supply And Demand
The availability of manpower both within and outside the company is an important determinant in the recruitment process. If the company has a demand for more professionals and there is limited supply in the market for the professionals demanded by the company, then the company will have to depend upon internal sources by providing them special training and development programs. Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. Demand refers to how much quantity of a product or service is desired by buyers. Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price.

2.1.2 Labor Market
A labor market is the place where workers and employees interact with each other. A labor market is the place where workers and employees interact with each other. In the labor market, employers compete to hire the best, and the workers compete for the best satisfying job. A labor market in an economy functions with demand and supply of labor. In this market, labor demand is the firm's demand for labor and supply is the worker's supply of labor. The supply and demand of labor in the market is influenced by changes in the bargaining power.

2.1.3 Political social
Various government regulations prohibiting discrimination in hiring and employment have direct impact on recruitment practices. For example, Government of India has introduced legislation for

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