Section Six - Human Resource Decisions - Human Resource Objectives Flashcards
What is the purpose of HRM?
To ensure that a business achieves the maximum benefit from its employees at the minimum cost. The human resources (HR) department needs to make sure that the business has the right number of employees with the right skills, qualifications and qualities.
What are HR Objectives influenced by?
Human Resource (HR) obiectives are influenced by the objectives of the business as a whole.
E.g. if the business is going to expand into a new market, the HR department might need to recruit new staff to suit the business needs.
What are examples of HR objectives?
- Matching the Workforce to Business Needs
- Helping Employees reach their full potential
- Supporting Employee/Employer Relations
How does HR try to match the workforce to business needs?
- HR needs to anticipate the future size of the workforce - if the organisation is expanding they’ll need more workers, if it’s contracting they won’t need as many.
- They decide what skill-level the workforce needs, and whether staff should be employed full- or part-time. If the requirements of the business change, HR can decide whether to train current staff or recruit new workers from outside the business.
- They also work with other managers to decide where employees are needed if a business has several sites or branches, and which departments within a business require specific staff.
- HR also needs to think about diversity in all positions of the business, from floor staff to directors.
A workforce that is diverse in age, gender and race will have a wide variety of skills, ideas and experiences. - HR has a budget like all other departments. They have to make sure that staff wages are appropriate to the job and employee. They focus on getting the right balance between staying within the budget and having the correct number of staff, the right amount of training and rewarding more skilled/senior positions.
How does HR try to help employees reach their full potential?
- HR invests in training so workers can improve their productivity.
They also make sure that employees have the right equipment to do their job properly. - HR makes sure there are opportunities for career progression. Employees work better and are more engaged if they have something to aim for, like a promotion or taking on extra responsibility at work.
- In certain businesses, HR needs to make sure they focus on the most talented employees reaching their full potential. This can be achieved through extra training and ‘fast-tracking’ schemes.
- They need to match workforce skill-levels to jobs. If a job is too challenging for an employee, this can lead to demotivation and low self-esteem. If the work is too easy, employees become bored.
- Effective management, good staff organisation and a pleasant working environment help to improve morale - happy employees are more likely to work to their full potential
How does HR try to support employer/employee relations?
- Employee/employer relations are based upon good communication. HR listens and reacts to employee concerns. They can advise managers how to deal with problems in their departments.
- Employees who are given responsibility and are involved in decision-making feel valued and trusted.
- Improving the relationship between employees and management can reduce absenteeism and labour turnover. If employees feel engaged, they’re more likely to be loyal to the business.
*Breakdown in relations can lead to decreased productivity, low moraleand even strike action. - Employee/employer relationships work best when the values of the employee align with the values of the employer. The employee should always bear in mind the values of the employer when making decisions.
What internal factors influence HR Objectives?
1) The culture within the business influences
HR objectives. E.g. some businesses, like fast food restaurants, might not be worried about having a high labour turnover, so they wouldn’t want HR to spend time and money trying to reduce it.
2) Other departments within the business influence HR. They give HR the information that they need to predict workforce needs.
3) The amount of funding available within the business.
What external factors influence HR Objectives?
1) The general state of the economy (boom or recession) will affect HR activities such as recruitment and training.
2) All UK businesses are subject to UK employment laws.
HR might have to change their objectives to fit in with new legislation.
3) Current ethical and environmental issues can influence HR objectives, e.g. the condemning of zero-hours contracts.
4) Improvements in technology might mean HR recruit people who can use a certain type of software or machine.
What is hard HRM?
1) Employees are seen as a resource like any other.
2) Employees are hired on a short-term basis.
3) Managers believe that employees are mainly motivated by money and think they will do as little work as possible.
4) Appraisals are judgemental.
5) Training is only done to meet production needs.
What is 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 is an advantage of Hard HRM?
1) 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 is a disadvantage of Hard HRM?
2) 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 is an advantage of Soft HRM?
3) 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 is a disadvantage of soft HRM?
4) 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.
