Final answer:
Labor relations strategies are increasingly shaped by competitive business conditions and market pressures, particularly due to discriminatory practices driving away employees, globalization, and new technologies expanding competition.
Step-by-step explanation:
More and more companies are finding that their labor relations strategies are driven by their need to adapt to new, more competitive business conditions and the global economy. A conclusive element in this adaptation process is how businesses respond to market pressures arising when employees seek better compensation with competitors. Particularly, a discriminatory business that underpays workers may experience a talent drain, where employees leave for better-paying jobs elsewhere, thus compelling the business to offer more competitive wages.
This dynamic is further intensified by the financial motivation underpinning most business operations: in a competitive market, profit-seeking employers will naturally prioritize economic concerns over discriminatory practices, focusing instead on productivity.
Additionally, technological advancements and globalization have escalated the level of competition across all sectors. Firms are not only contending with local or regional competitors but also with those from different countries. This has expanded the market in which they operate and has altered traditional business models, necessitating agile adjustments in strategy.
To stay competitive, businesses might have to expand or reduce production, set the price they choose, open new factories or sales facilities or close them, hire workers or lay them off, and decide whether to start selling new products or stop selling existing ones. The ultimate goal is to align labor relations strategies with the overarching need to stay profitable and relevant within the tumultuous and diverse market demands.