HUMAN RESOURCE STRATEGIES

UNDERSTANDING HR OBJECTIVES AND STRATEGIES

“The less people know about what is really going on, the easier it is to wield power and

authority.”

Prince Charles

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UNDERSTANDING HR OBJECTIVES AND STRATEGIES

IN THIS TOPIC YOU WILL LEARN ABOUT:

HR Objectives

Assessing internal and external influences on HR objectives

HR Strategies

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HUMAN RESOURCE OBJECTIVESB

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Corporate Objectives

Functional Objectives

HR Objectives

The targets that the HR function of a

business wants to achieve in a given

time period

HUMAN RESOURCE MANAGEMENT HRM involves making the most effective use of

employees to help achieve corporate aims

How can a business measure workforce performance?What financial measures can a business use to motivate employees?What non financial measures can a business use to motivate employees?What are the benefits of having a motivated workforce?

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Recap AS People in Business

You will need access to the internet to watch this clip How to manage staff!

HR OBJECTIVES

Matching workforce skills, size and location to business needs Enabling all aspects of the business to function Meet new challenges to the business Workforce plans, which are studied in the next

unit 3.17, are a crucial part of meeting this objective

Minimising labour costs Reduced labour turnover to keep recruitment

costs low Should not be achieved to the detriment of overall

performance of staff and ultimately the business

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Explain the relationship between minimising labour costs and gaining an optimum resource mix as

studied in unit 3.12 Scale and Resource Mix

HR OBJECTIVES

Making full use of workforce potential Regular appraisals and skills audits Internal promotion Development opportunities

Maintaining good employee/employer relations Effective communication Good industrial relations Avoiding disputes Avoiding negative publicity Unit 3.19 Effective employee/employer relations

looks at this topic in more detail

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HR OBJECTIVESAN EXAMPLE : HEWLETT PACKARD

To help HP employees share in the company's success that they make possible; to provide people with employment opportunities based on performance; to create with them a safe, exciting and inclusive work environment that values their diversity and recognises individual contributions; and to help them gain a sense of satisfaction and accomplishment from their work.

Underlying beliefs supporting this objective: HP's performance starts with motivated employees; their loyalty

is key We trust our employees to do the right thing and to make a

difference Everyone has something to contribute: It's not about title, level or

tenure An exciting, stimulating work environment is critical to invention A diverse workforce gives us a competitive advantage Employees are responsible for lifelong learning

Source: www.welcome.hp.com

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INTERNAL AND EXTERNAL INFLUENCES ON HR OBJECTIVES Corporate objectives

Cost minimisation Market growth Maximise shareholders’ returns Increased competitiveness

Financial objectives and strategies Allocating capital expenditure Cutting budgets Implementing profit centres Increasing ROCE

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How might a HR function respond to

each of these corporate

objectives?

A business is looking to increase ROCE and shareholders’ returns. It has identified 2 possible strategies.1. A move to more capital intensive production techniques2. Relocate abroad to a place with cheaper labour costsHow might the HR objectives vary depending upon the option

chosen?

INTERNAL AND EXTERNAL INFLUENCES ON HR OBJECTIVES Operations objectives and strategies

Labour v. Capital intensive Innovation Effective time management Lean production

Marketing objectives and strategies Low cost v. differentiation

Ansoff’s Matrix

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Consider how HR may respond to each of these operational

issues

How would each strategy effect the HR function’s criteria during a selection process?

How would HR objectives be different if a strategy of product development was chosen over one of market

development?

INTERNAL AND EXTERNAL INFLUENCES ON HR OBJECTIVES

Workforce skills and availability Number of school leavers and graduates Skills shortages v. Skills surplus Demographics e.g. ageing population,

immigrants

Technological change Capital intensity Skills

Market conditions Growth, static or decline Consumer habits

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INTERNAL AND EXTERNAL INFLUENCES ON HR OBJECTIVES Political factors

UK legislation Minimum wage Age discrimination

EU directives Work time directive Paternity leave

Social factors Family commitments

Mothers returning to work Single parent families

Students working to fund university

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You will need access to the internet to watch this clip

At what age do you hope to retire?

HR STRATEGIES

The overall way in which a business treats its staff

Has a direct impact upon the level of performance, motivation of employees and management styles

There are 2 opposing HRM strategies to study here Hard HRM

Staff are treated as a resource that must be managed in order for the business to control costs and output

Soft HRMStaff are treated as an asset to the business that can contribute and help the business achieve its objectives

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You will need access to the internet to watch this short clip

HR STRATEGIES

“Soft” HR Opportunities for

staff development Training Internal promotion

Empowerment Consultation Greater autonomy

and responsibility Flatter

organisational structure

“Hard” HR Control mechanisms

Judgemental appraisals

Centralised decision making

Tall organisational structure

Fixed term contracts Minimum wage External recruitment

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ACTIVITY: SOFT V. HARD HR STRATEGIES

IN PAIRS THINK ABOUT THE STRENGTHS AND WEAKNESSES OF THESE 2 STRATEGIES TO COMPLETE THE TABLE BELOW

Strengths Weaknesses

Soft

Hard

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