In simple terms, an organization's human resource management strategy should maximize

return on investment in the organization's human capital and minimize financial risk. Human
Resources seeks to achieve this by aligning the supply of skilled and qualified individuals and
the capabilities of the current workforce, with the organization's ongoing and future business
plans and requirements to maximize return on investment and secure future survival and
success. In ensuring such objectives are achieved, the human resource function purpose in
this context is to implement the organization's human resource requirements effectively but
also pragmatically, taking account of legal, ethical and as far as is practical in a manner that
retains the support and respect of the workforce

Since we are moving into the Strategic human resource era, there is need for management to
take a hard look at the vision and mission of the organization before implementing any
polices. There is also need to have an analysis of the external environment that the
organisation is working in so as to make sure that policies that are devised will take into
cognisance what is happening in the market.

Internal Analysis

According to the information at hand, future car is faced with a number of human resources
challenges namely ageing workforce, high turnover rate of the younger age group, low
satisfaction and high absenteeism of the younger generation as well.

Due to the less levels of satisfaction especially among the young group, this is causing a high
level of absenteeism and turn-over rate. The company also has an ageing workforce who are
close to retiring and so they seriously need to work on policies that will increase motivation
and balance up the age group.

The main cause of the above mentioned problems is motivation. The workforce is not
motivated enough. The company may also be pursuing shrewd recruitment and compensation
plan which may be leading to the above mentioned problems.

External analysis

the issue of ageing workforce is not just an issue at Future Car. Most European countries are
facing the same problem of an ageing workforce, this means that Future car are not the onll
ones looking to correct the ageing imbablance. There is going to be a massive competition for
skilled labour in the market and organisations need to be very competitive in a number of
human resources areas so as to be able to hire and return skilled labour

the life expectance of the developed world has generally increased over the last decades due
to a number of factors. This has resulted is some countries trying to push the retirement age a
bit up so as to balance for the shortage of labour on the market.