3.6.1 Setting human resource objectives Flashcards
What is Human Resources?
this refers to the organisations employees in general, or the department responsible for their management
What is Human Resource Management (HRM)?
the actual management if the employees or department
What are 4 of the areas included in HRM?
- Health and safety
- Employees rights (trade unions)
- Hierarchy/promotion
- Recruitment and selection
Give reasons for the importance of setting human resource objectives.
It gives employees something to work towards
Improves efficiency
Focus for decision making
Improves coordination between departments
What are internal influences on human resource objectives and decisions?
- Corporate objectives (e.g. an objective of cost minimisation results in the need for redundancies, delayering or other restructuring)
- Operational strategies (e.g. introduction of new IT or other systems and processes may require new staff training, fewer staff)
- Marketing strategies (e.g. new product development and entry into a new market may require changes to organisational structure and recruitment of a new sales team)
- Financial strategies (e.g. a decision to reduce costs by outsourcing training would result in changes to training programmes)
What are external influences on human resource objectives and decisions?
- Market changes (e.g. a loss of market share to a competitor may require a change in divisional management or job losses to improve competitiveness)
- Economic changes (e.g. changes in the level of unemployment and the labour market will affect the supply of available people and their pay rates)
- Technological changes (e.g. the rapid growth of social networking may require changes to the way the business communicates with employees and customers)
- Social changes (e.g. the growing number of single-person households is increasing demand from employees for flexible working options)
- Political & legal changes (e.g. legislation on areas such as maximum working time and other employment rights impacts directly on workforce planning and remuneration)
Explain 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
Explain soft HRM
1) Employees are the most important resource.
2) Employees are managed on a long-term basis.
3) Managers motivate employees through empowerment and development and think that working is natural for employees.
4) Appraisals are developmental.
5) Training is done to meet development needs.
What are the advantage of Hard HRM?
Hard HRM can benefit a businesses because managers keep control of the workforce, so people are less likely to make mistakes. Since employees are seen as just another resource, it’s easy for the business to replace them.
What are the disadvantages of Hard HRM?
Businesses adopting hard HRM don’t use employees to their full potential, so could be missing out on chances to increase profits. Hard HRM can also be demotivational for the workforce. Boring, repetitive jobs can make employees feel undervalued. They’re unlikely to be loyal to their organisation, leading to high staff turnover.
What are the advantages of soft HRM?
Soft HRM is likely to increase staff morale because employees will feel valued. This will make it easier to retain staff, and the business will also benefit from the skills and experience of its staff. It encourages commitment and good performance from its workers, because they feel loyalty towards the organisation.
What are the disadvantages of soft HRM?
Soft HRM isn’t always appropriate though - employees might not be interested in development or empowerment, and soft HRM usually involves more costs for businesses because it encourages investment in employees. The extra training is also time-consuming. There’s also a risk that employees who have completed all the training might want to leave for a better job.
