6 Setting Human Resources (HR) Objectives 45

Question 1

What is Human Resource Management ( HRM )?

Answer 1

Human resources management is: “the design, implementation and maintenance of strategies to manage people for optimum business performance”.

Question 2

What is (HRM) Part 2 …?

Answer 2

Human resource management covers a wide variety of tasks involving the management of people in a business 
E.g: 
- Training
- Recruitment & Selection 
- Talent development 
- Employee engagement & involvement

Question 3

What is a HR objective ?

Answer 3

It´s a specific goal or target of relating to the management and performance of human resources in a business.

Question 4

How can HR objectives add value to the operations of a business?

Answer 4

It can help create effective working environment for a key stakeholder group - employees

It can connect HR activities & decision-making with overall business objectives

Question 5

What are the the HR actions by the objective: Ensure Human Resources are employed cost-effectively

Answer 5

– Achieve acceptable staff utilization

– Minimise staff turnover

Question 6

What are the main Internal Influences on the setting HR objectives ?

Answer 6

Corporate Objectives
*E.g: An objective to costs reduction is likely to require HR to implement redundancies, job reallocations etc.

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 produce development & entry into new market may require changes to organizational structure & recruitment of new sales team

Financial Strategies
*E.g:A decision to reduce costs by outsourcing training would result in changes to training programs

Question 7

What are the the HR actions by the objective: Make effective use of workforce potential

Answer 7

– Avoid too many under-utilised or over-stretched staff

– Make best use of employees skills

Question 8

What are the the HR actions by the objective: Match the workforce to the business needs

Answer 8

– Effective recruitment to match workforce needs

– Training programs to cover skills gaps or respond to changes in technology, processes and market

Question 9

What are the the HR actions by the objective: Maintain good employer / employee relations

Answer 9

– Avoid unnecessary and costly industrial spites

– Timely and honest communication with employees

Question 10

What are the the HR actions by the objective: High employee engagement and involvement

Answer 10

– Involving employees in job design and other work-related improvements
– Provide an effective outlet for the employee “voice” communication

Question 11

What are the the HR actions by the objective: Operate effective talent development

Answer 11

– Link talent development programmes with strategies for recruitment and retention
– Implement effective internal recruitment processes

Question 12

What are the the HR actions by the objective: Manage diversity well

Answer 12

– Effective equality management and processes

– Full compliance with diversity legislation

Question 13

What are the common HR objectives ?

Answer 13

+ 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

Question 14

What are the main external influences on HR objectives ?

Answer 14

1) Market Changes
Loss of market share to a competitor may require a change in management or jobs losses to improve competitiveness

2) Economic Changes
The recession of 2009/10 placed great pressure on HR departments to reduce staff costs and improve productivity

3) Technological Changes
The rapid growth of social networking may require changes to the way the business communicates with employees and customers

4) Social Changes
Growing number of single-person households is increasing in demand from employees for flexible working options

5) Political & Legal Changes
EU legislation on areas such as maximum working time and other employment rights impacts directly on. workforce planning and remuneration

Question 15

What is Soft Human resource management (HRM) ?

Answer 15

• Treats employees as the most important resource in. the business
• Employees are treated as individuals and their needs are planned accordingly
  FOCUS: Concentrate on the needs of employees, their roles, rewards, motivation etc.

Question 16

What is Hard Human resource management (HRM) ?

Answer 16

• Treats employees simply as a resource if the business
• Strong link with corporate business planning
  FOCUS: Identifying workforce needs of the business and recruit and manage accordingly (hiring, moving and firing)

Question 17

What are the key features of Soft HRM ?

Answer 17

• Strategic focus on longer-term workforce planning
• Strong and regular two-way communication
• Competitive pat structure, with suitable performance-related rewards
• Suits Democratic leadership style

Question 18

Is Soft HRM the best approach ??

Answer 18

+ Approach that rewards employee performance and motivates staff more efficiently

– However, be too “soft” and when all the employee benefits are added up, the costs of the workforce may leave a business at a competitive disadvantage

Question 19

What are the key features of Hard HRM ?

Answer 19

• Short-term changes in employee numbers
• Minimal communication, from the top down
• Pay - enough to recruit and retain enough staff
• Suits Autocratic leadership style

Question 20

Is Hard HRM the best approach ??

Answer 20

+ Might result in more cost-effective workforce were decision-making is quicker and focused on senior managers

– But a genuinely “hard” approach might expect to suffer from higher absenteeism and staff turnover and less successful recruitment