Understanding HR Objectives and Strategies

Learning Objectives To understand the activities involved in human resource management. To understand the different HRM objectives of a business To identify suitable HR objectives for a particular business.

Human resource management The management of people at work in order to assist the organisation in achieving its objectives. The overall aim of managing people is to maximise the contribution of employees to the organisation’s overall objectives.

HRM objectives Matching workforce skills and the size and location of the workforce to the requirements of the business. -Sufficient employees are recruited and/or trained to meet the businesses needs. -A lack of appropriate staff can lead to customer delays, rushed and poor quality work, and an inability to accept contracts.

HRM objectives Minimising labour costs. -Have to work within budgets -Particular important for low cost business and those suffering financial difficulties. -How might they achieve this?

HRM objectives Making full use of the workforce’s potential/productivity. Ensuring productive efficiency of the workforce is maximised and improving motivation. How might this be achieved?

HRM objectives Maintaining good employer/employee relations. To ensure a committed, satisfied and motivated workforce. Will depend on the quality of communications and the trust between them. - How are the staff treated? -Are they listened to? -Do they have the opportunity to influence the business policy?

SMART objectives Specific, measurable, agreed, realistic and time-bound E.g. SMART HR target – ‘the new factory, which will be fully operational by 1 st February 2010, is fully staffed by 2 nd January 2010 and staff at manager and supervisor level are in post be the 1 st November.

Factors influencing HR objectives Legislation Corporate culture Financial constraints Economic factors Organisational structure Social factors Structure of the population Actions of competitors New technology Trade union and employee and employer relationships Overall performance of the business

PESTLE analysis Political Economic Social Technological Legal Environmental

Hard Vs soft HRM Hard HR = a strategy that treats employees as a resource, just like any other resource, that should be used in a efficient manner. Soft HR = a strategy that views its employees as valuable assets and of vital importance to achieve objectives.

Hard HRM Necessary cost People are an input required to get the job done Managers are the ‘thinkers’ and ‘developers’ Call centres and McDonalds could be examples Can you think of advantages and disadvantages of this?

Hard HRM Advantages Predictable outcome Employees are easily replaceable Managers maintain control of decision- making and so quicker and less risk Disadvantages Failure to build upon skills Dissatisfied employees and low morale Relies too heavily on management Lack of flexibility

Soft HRM Employees can add a great deal of value to a business A business should build on their skills Managers as facilitators Ensuring sufficient training is provided Can you think of any advantages and disadvantages with this?

Soft HRM Advantages Increase creativity and innovation More likely to keep and maintain skilled employees Contributions make the business more flexible and adaptable Disadvantages Time taken in consultation and discussion Employees may not have the ability to get involved

Recap Leadership styles Motivation Organisational structures How do these link in with the HRM approaches discussed?

Plenary Give examples of HR objectives. What is Hard HRM? What is Soft HRM? Which approach is better for a business such as JCB? Why?