Learning ObjectivesBy the end of the lesson you should be able to:1. Identify the range of HR objectives typically set by larger businesses.2. Explain how internal and external factors can influence the setting of HR objectives.3. Understand the difference between ‘hard’ and ‘soft’ approaches to HR.4. Evaluate the relative strengths and weaknesses of ‘hard’ and ‘soft’ HR strategies.
Human Resource Management (HRM) What is HRM?Making the best use of all employees to achieve corporate goals. Can you identify HR objectives? Decide True or False
HR Objective?Maintaining good use of employer- employee relations? TRUE
HR Objective?Making full use of the workforce’s potential. TRUE
HR Objective?Ensuring trade unions have control of employees’ rights. FALSE
HR Objective?Ensuring that employees’ receive full fringe benefits. FALSE
HR Objective?Matching workforce location to business needs. TRUE
HR Objective?Matching workforce size to business needs. TRUE
HR Objective?Ensuring that employees’ work for the maximum number of hours. FALSE
HR Objective?Matching workforce skills to business needs. TRUE
Matching workforce sizeto business needsInnovation, changes in production techniques, technologicalchange or expansion all lead to a change in the size of theworkforce a company needs.Rolls Royce 1. Why do you think that Rolls-Royce created jobIn Jan 2008, Rolls-Royce announced plans loses confined to theto cut it’s global workforce of nearly 40,000 managerial, professionalby just under 6% to boost and efficiency and and clerical staff?competitiveness. The 2,300 job losses wereconfined to the companies managerial, 2. What are the benefits andprofessional and clerical staff. Rolls-Royce downsides to this?said that it would continue to recruitgraduates, apprentices and those ‘required 3. What other functionaldirectly to deliver growth’. area does this link to?
Making full use of the workforce’s potentialIt is inefficient for a business to under-utilise the skills of it’semployees, in just the same way that it should make full use ofit’s productive capacity. 1. Do you think that this employee potential is being used? 2. What issues can be caused through not making full use of an employee’s potential?
Maintaining good employer-employee relationsWhen the relationship between workers and managementbreaks down, there is often press coverage which causes badpublicity for a business.Abercrombie & Fitch AppleRead the case study and Read the case study andhighlight the key points. highlight the key points.What were the issues? What were the issues?How was the affect on the How was the affect on thebusiness? business?
Internal and External Influences on HR objectivesObjectives selected by the HR function cannot be chosen inisolation and must take into account influences from within andoutside the organisation. Group 1 – List any internal influences on 2 minutes HR Objectives. Group 2 – List any external influences on HR objectives.
Internal and External Influences on HR objectivesObjtives selected by the HR function cannot be chosen in isolationand must take into account influences from within and outsidethe organisation.Internal influences on HR objectives External influences on HR objectives1. Group 1 – List any Corporate objectives –overall goal will 1. Market growth – if in a growth market then determine the HR goals/ strategies. may have to focus on expanding internal influences on 2 minutes recruitment or training.2. HR Objectives. Corporate finance – determine whether business will expand or economise. 2. Changes in employment law – changes in the minimum wage.3. Operational objectives – is there scope for factory automation as redundancies or 3. Changes in competition – new fierce Group 2 – List any redeployment necessary. competitor may force a business to cut4. external influences on Marketing plans – If launch in China, HR R&T costs sharply. HR objectives. may have to change. 4. Technological change – can have a big impact on the skills required by employees.
‘Soft’ and ‘Hard’ HR Management – Which one? Features: Fixed-term contracts. External recruitment. Features: Judgemental appraisal systems. Training and development Limited delegation of opportunities. authority. Internal promotion. Tall organisational structure. Developmental appraisal systems. Minimum wage levels. Consultation and empowerment. Flat organisational structure.
‘Soft’ and ‘Hard’ HR Management – Where is this used? What approach do you think is best? Soft or Hard?
Test Yourself….1. Explain why matching workforce skills, size and location are important HR objectives in a large organisation.2. Distinguish between soft and hard HR management.3. It is claimed that more and more businesses are ‘spying’ on employees who claim to be sick. The aim is to reduce absenteeism which costs firms in the UK millions of pounds every year. What are the benefits and drawbacks of a firm such as Next using this strategy as it’s stores?
Finally….Write down 3 externalfactors influencing objectives.Write down 2 advantages of‘soft’ HR Management.Write down 1 definition forHRM
Re-cap Learning ObjectivesYou should now be able to:1. Identify the range of HR objectives typically set by larger businesses.2. Explain how internal and external factors can influence the setting of HR objectives.3. Understand the difference between ‘hard’ and ‘soft’ approaches to HR.4. Evaluate the relative strengths and weaknesses of ‘hard’ and ‘soft’ HR strategies.