6.1 - Human Resource objectives

• Human Resource Management (HRM)

  Managing People
• Purpose of HRM


  • Ensure a business achieves the maximum benefit from its employees at the minimum cost
  • Make sure the business has the right number of employees with the right skills, qualifications and qualities
• HR objectives


  Influenced by the objectives of the business as a whole
• Role of HR department


  • Work closely with other departments to anticipate workforce needs and react to them
  • Work with the finance department to determine a suitable budget for the department
• HR decisions


  • How to use employee skills
  • How to keep employees working for the company
  • How to train and reward employees
  • How to terminate employee employment
• HR objectives


  • Matching the Workforce to Business Needs
  • Helping Employees Reach their Full Potential
  • Supporting Employee/Employer Relations
• Matching Workforce to Business Needs


  • Anticipate future workforce size based on business expansion or contraction
  • Decide required skill-level and employment type (full-time/part-time)
  • Decide whether to train current staff or recruit new workers
  • Decide where employees are needed and which departments require specific staff
  • Ensure workforce diversity in age, gender and race
• Helping Employees Reach their Full Potential


  • Invest in training to improve employee productivity
  • Ensure employees have the right equipment
  • Provide opportunities for career progression and taking on extra responsibility
  • Focus on developing most talented employees
  • Match workforce skill-levels to job requirements
  • Improve morale through effective management, good staff organisation and pleasant working environment
• Supporting Employee/Employer Relations


  • Listen and react to employee concerns
  • Advise managers on dealing with departmental problems
  • Give employees responsibility and involve them in decision-making
  • Improve relationship to reduce absenteeism and labour turnover
  • Ensure employee values align with employer values
• Internal factors influencing HR objectives


  • The culture within the business
  • Other departments within the business
  • The amount of funding available within the business
• External factors influencing HR objectives


  • The general state of the economy (boom or recession)
  • UK employment laws
  • Current ethical and environmental issues
  • Improvements in technology
• Hard HRM


  • Employees are seen as a resource like any other
  • Employees are hired on a short-term basis
  • Managers believe that employees are mainly motivated by money and think they will do as little work as possible
  • Appraisals are judgemental
  • Training is only done to meet production needs
• Soft HRM


  • Employees are the most important resource
  • Employees are managed on a long-term basis
  • Managers motivate employees through empowerment and development and think that working is natural for employees
  • Appraisals are developmental
  • Training is done to meet development needs
• Hard HRM


  • Managers keep control of the workforce, so people are less likely to make mistakes
  • Businesses don't use employees to their full potential, so could be missing out on chances to increase profits
  • Can be demotivational for the workforce
• Soft HRM


  • Increases staff morale because employees will feel valued
  • Encourages commitment and good performance from its workers, because they feel loyalty towards the organisation
  • Involves more costs for businesses because it encourages investment in employees
  • The extra training is also time-consuming
  • There's a risk that employees who have completed all the training might want to leave for a better job