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HRM objectives

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HRM v Personnel

HRM sees the activities with theworkforce as key to corporateobjectives. The aim of HRM is tomake the best use of the

workforce for the company toachieve its goals.

Personnel management considers

all the elements of managingpeople as separate elements /unrelated tasks & ignores thewider picture.

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What activities do HRM do?

Recruitment

Pay

TrainingAppraisal

Motivation

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Why HRM has become moreimportant?

Most businesses now provide services ratherthan produce goods people are the criticalresource in the quality and customer servicelevel

Competitiveness requires a business to beefficient and productive this is difficult unlessthe workforce is well motivated, has the rightskills and is effectively organised

The move towards fewer layers of managementhierarchy (flatter organisational structures) hasplaced greater emphasis on delegation andcommunication

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HUMAN RESOURCE OBJECTIVES

Corporate Objectives

Functional Objectives

HR Objectives

The targets that the HRfunction of a businesswants to achieve in a

given time period

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HRM objectives include

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HRM objectives

1. Matching the workforce to theneeds of the business

2. Making full use of theworkforces potential

3. Minimising labour costs

4. Maintaining goodemployee/employer relations

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1. Matching the workforce tothe needs of the business

Workforce planning to ensure business has the rightnumber of staff in the right locations with the rightskills

Effective recruitment to match workforce needs

Training programmes to cover skills gaps or respondto changes in technology, processes & market

Consider outsourcing activities

Get the right number and mix of staff at each locationwhere the business operates in multiple sites andcountries

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What would happen if you had thewrong number / type of staff?

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2. Making full use of theworkforces potential

Regular appraisals and skills audits

Internal promotion

Development opportunities

Ensure jobs have suitable, achievable workloads

Avoid too many under-utilised or over-stretchedstaff

Make best use of employees skills

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Productivity- how can ithelp thecorporate

objectives?

Customer service

Ratios?

Marketing

Prices

Finances

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3. Minimising labour costs

Reduced labour turnover to keep recruitment costslow

Should not be achieved to the detriment of overallperformance of staff and ultimately the business

Pay rates should be competitive but not excessive

Achieve acceptable staff utilisation

Minimise staff turnover

Measure returns on investment in training

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Harrods staff

Ryanair staff(holding their modelling photo from calendar!)

Tightly controlled costs;

work long hours and have

multiple skills. Lower

staffing levels

More generous staffing levels,

well paid staff

Staff are currently leaving RBS due

to govt pressure to NOT pay annualbonuses (govt owns 80% stake in

RBS through bank bail out). Staff

leaving for competitor companies.

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4. Maintaining good employee /employer relations

Effective communication

Good industrial relations

Avoiding disputes

Avoiding negative publicity

Complying with all relevantlabour laws

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Recent strike action

In Paris, around 20

museums, art galleries and

public monuments had

suffered either total or

partial closure as public

sector workers downed

tools over what theydescribed as an attempt to

"dismantle and

destabilise" France's

flagship cultural sector.

http://www.guardian.co.uk/culture/museumshttp://news.bbc.co.uk/1/hi/business/8338258.stmhttp://www.guardian.co.uk/culture/museums

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BT shed 10,000 jobs.

In Nov 2008 BT announced that itintending to cut 10,000 jobs from itsglobal workforce of 160,000.

The news of the cuts sent BT shares7.5% higher.

Many of the job losses were in the UK.

1. Which HR objective might have promptedthis decision?

2. Which corporate objective might thisdecision help BT to fulfil?

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Are you Hard or Soft?

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HR strategies

Sees people as an

unwelcome cost

People are an input toget work done

Managers are thethinkers giveinstructions to workers!

HardSees people as those

who can add value to the

business.

A business needs todevelop their employeesskills, interests & abilities

Managers are facilitators to coach & help staff to

do their work properly.

Soft

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HR strategies

Treats employeessimply as a resource

of the business.Strong link with

corporate businessplanning what

resources do weneed, how do we getthem and how much

will they cost

HardTreats employees asthe most important

resource in thebusiness and a

source ofcompetitiveadvantage

Employees aretreated asindividuals and theirneeds are planned

accordingly

Soft

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Evaluation skills

What are the benefits ofhaving a hard HRMstrategy?

Staff are well monitored Costs are minimised,

Companies can increase /

reduce output when needed. Greater centralisation /

control by managers

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Evaluation skills

What are the benefits ofhaving a soft HRM strategy?

High levels of employee

participation, Higher motivation

Greater commitment from staff,

Lower turnover, Less absenteeism

Greater productivity!

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Your go

Read Halfords Case study

Complete Qs

To discussPreliminary

Qs

Use whiteboard toplan answer to Hard

or Soft Q.

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Homework

Read chapter 15 p 180-188

Make own notes on Internal &external factors on HRMobjectives.

Make more revision notes onHard & Soft HRM strategies.