Industrial Relations

UNIVERSITY OF ZIMBABWE

GRADUATE SCHOOL

OF

MANAGEMENT

(GSM)

MASTERS IN BUSINESS ADMINISTRATION DEGREE

(MBA)

HUMAN RESOURCES MANAGEMENT

(HRM)

J. DHLAKAMA

(STUDENT)

R-081973N

LECTURER: MR. E. CHISI

07th MARCH 2010

HUMAN RESOURCES MANAGEMENT – ASSIGNMENT 1

With reference to the Zimbabwean economy prevailing in 2009 and 2010, discuss the human resources management challenges existant. Offer possible solutions.

Introduction

Zimbabwe, formerly Southern Rhodesia, Republic of Rhodesia and Zimbabwe-Rhodesia is a landlocked country located in the Southern part of the continent of Africa. It is found between Zambezi and Limpopo rivers and it is surrounded and bordered by Zambia, Mozambique, South Africa and Botswana. It comprises of various races namely, blacks who are the majority and whites who are the minority. The total estimated population is twelve (12 000 000) million with a life expectancy of 37 years. The economy is driven by exports from mining, agriculture and tourism. The administrative governance of the country is through an inclusive government of three different political parties.

2009 and 2010 Economy

The negative hyperinflationary effects of the year 2008 which threatened the survival of mankind and businesses continued into year 2009. In the year 2009, on 29 January the Reserve Bank of Zimbabwe introduced a new $100 trillion bank note in an effort to counter the runway inflation. In February 2009, the Reserve Bank went on to remove off twelve zeros which resulted in new bank notes of Z$1, Z$10, Z$20, Z$50, Z$100 and Z$500. On April 12, 2009 in an effort to combat inflation and foster economic growth the Zimbabwean dollar was suspended indefinitely. The authorities allowed the use of other stable currencies under what was defined as a multi-currencies economy. This was to manage a hyperinflationary rate of inflation which had reached 561 quintillion per cent resulting in prices doubling every 1.3days. This fiscal policy...