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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/museums7/31/2019 10 HRM Return
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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.
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