setting HR objectives

• What is HRM?

  • Most businesses now provide services rather than produce goods – people are the critical resource to deliver the required quality and customer service level

  • Competitiveness requires a business to be efficient and productive – this is difficult unless the workforce is well motivated, has the right skills and is effectively organised

  • The move towards fewer layers of management hierarchy (flatter organisational structures) has placed greater emphasis on delegation and communication
• HRM covers a wide variety of tasks involving the management of people in a business like ...

  • Workforce planning

  • Recruitment & selection

  • Training

  • Talent development

  • Employee engagement & involvement

  • Managing diversity

  • Developing corporate culture
• HR objectives

  • Connect HR activities & decision-making with overall business objectives

  • Link HR with customers service and quality – two key components of competitiveness

  • Help create effective working environment for a key stakeholder group - employees
• Common HR objectives

  Ensure human resources are employed cost-effectively

  Make effective use of workforce potential

  Match the workforce to the business needs

  Maintain good employer / employee relations

  High employee engagement and involvement

  Operate effective talent development

  Manage diversity well
• internal influences on the setting of HR objectives

  Corporate objectives

  Operational strategies

  Marketing strategies

  Financial strategies
• external influences on HR objectives

  Market changes

  Economic changes

  Technological changes

  Social changes

  Political & legal changes
• SOFT HRM

  • Treats employees as the most important resource in the business and a source of competitive advantage

  • Employees are treated as individuals and their needs are planned accordingly
• HARD HRM

  • Treats employees simply as a resource of the business.

  • Strong link with corporate business planning – what resources do we need, how do we get them and how much will they cos
• SOFT HRM

  -Strategic focus on longer-term workforce planning

  • Strong and regular two-way communication

  • Competitive pay structure, with suitable performance-related rewards (e.g. profit share, share options)

  • Employees are empowered and encouraged to seek delegation and take responsibility

  • Appraisal systems focused on identifying and addressing training and other employee development needs

  • Flatter organizational structures

  • Suits democratic leadership style
• HARD HRM

  • Short-term changes in employee numbers (recruitment, redundancy)

  • Minimal communication, from the top down

  • Pay – enough to recruit and retain enough staff (e.g. minimum wage)

  • Little empowerment or delegation

  • Appraisal systems focused on making judgements (good and bad) about staff

  • Taller organisational structures

  • Suits autocratic leadership style