Human resource issues
13.1 Introduction
Neo-classical economics sees labour as one of the factors of production, exchanged in markets like other commodities and governed by the laws of demand and supply. People, however, are important in the economy both as producers and consumers of goods and services. For most products, people are the most important input into the production process; therefore the quantity and quality of labour available in an economy will have a considerable impact upon the economy’s ability to produce. The quantity and quality of labour available depends upon many factors including total population size, participation rates and the level of education and training.
In this chapter we start by defining basic terms and looking at trends in the labour market in the UK and the EU. The neo-classical theory of the labour market is then considered along with other more modern theories. Our analysis concludes with an examination of a range of contemporary issues relevant to the organisation.