Understanding HR objectives and strategies
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Transcript of Understanding HR objectives and strategies
3.16 Understanding 3.16 Understanding HR objectives and HR objectives and
strategiesstrategies
Learning objectives
understand what HRM is an what it involves
understand the key objectives
of HRM and explain what
influences them
distinguish between ‘hard’ and ‘soft’ HR
strategies
What is HR management?What is HR management?
DefinitionThe proactive management
of people within an organisation to help achieve
organisational objectives
DefinitionThe proactive management
of people within an organisation to help achieve
organisational objectives
What does HRM involve?
Workforce planning
Workforce planning
Recruitment and
selection
Recruitment and
selection
Training and
development
Training and
development
AppraisalAppraisal
Collective bargainingCollective bargaining
Payment systems
Payment systems
Disciplinary / grievance
procedures
Disciplinary / grievance
procedures
Health and safety and employment
law
Health and safety and employment
law
Key HR objectives
Matching workforce skills,
size and location to business
requirements
Matching workforce skills,
size and location to business
requirements
Minimising labour costsMinimising
labour costs
Maximising workforce potential
Maximising workforce potential
Good employer / employee relations
Good employer / employee relations
Write a SMART version of each of the key HR objectives given on the previous slide
Task 1Task 1
Factors affecting HR Factors affecting HR objectivesobjectives HR objectives are influenced by a wide
range of factors, both from inside and outside the business
Internal factors include financial constraints, corporate culture,
organisational structure, unionisation, new technology, business performance
External factors include political, economic, social, technological and
legislative factors (PESTL), competitors and demographics
For each of the internal factors on the next slide, choose a HR function which is likely to be affected by dragging it alongside the appropriate internal factor
Task 2Task 2
Collective bargaining
Size of workforce
Communication
Investment in training
Recruitment
Introduction of new technology
Introduction of flatter
organisational structure
Unionised workforce
Poor business performance
People orientated culture
INTERNAL INFLUNCE HR FUNCTION AFFECTED
For each of the external factors on the next slide, choose a HR function which is likely to be affected by dragging it alongside the appropriate internal factor
Task 3Task 3
Investment in training
Size of workforce Pay/payment systems
Flexible workingRecruitment
Greater use of ICT
Downturn in the economy
Social concerns about work-life
balance
Disability discrimination Act
Poaching of workers by competitors
EXTERNAL INFLUNCE
HR FUNCTION AFFECTED
Using your notebooks, find out about the causes of the recent strike activity at Royal Mail
Identify and explain the internal and external factors which have influenced Royal Mail’s HR objectives over the last ten years
You will find the BBC website useful for this task
Submit your answer via the VLE for assessment
Task 4Task 4
As you watch the two video clips, think about the approach to HR adopted by the two companies
What are the key features of each?
Different HR strategiesDifferent HR strategies
HR strategies
Hard HR strategyemployees treated as a resource
and monitored to increase efficiency and reduce costs
Hard HR strategyemployees treated as a resource
and monitored to increase efficiency and reduce costs
Soft HR strategyemployees treated as valuable
assets, recognising their importance in achieving strategic
objectives and delivering competitive advantage
Soft HR strategyemployees treated as valuable
assets, recognising their importance in achieving strategic
objectives and delivering competitive advantage
Hard HR strategyemployees treated as a resource, monitored to increase efficiency
and reduce costs with control firmly in hands of management
Key features include:• fixed-term contracts•external recruitment
•judgemental appraisal systems•limited delegation in decision-making
•tall organisational structure•minimum / low wage levels
Hard HR strategyemployees treated as a resource, monitored to increase efficiency
and reduce costs with control firmly in hands of management
Key features include:• fixed-term contracts•external recruitment
•judgemental appraisal systems•limited delegation in decision-making
•tall organisational structure•minimum / low wage levels
Hard HR strategyHard HR strategy
BenefitsBenefits Low training costs Competitive
advantage through cost minimisation
Clear link between reward systems and output
DrawbacksDrawbacks Needs of employees
neglected, resulting in high labour turnover and absenteeism, increasing costs
Difficulties in recruitment due to poor reputation
Demotivation and poor quality because of lack of empowerment
Soft HR strategyemployees viewed as valuable assets, important in achieving
strategic objectives and delivering competitive advantage through communication, motivation and
involvement
Key features include:• training and development opportunities
•internal promotion•developmental appraisal
•consultation and empowerment•flat organisational structure
Soft HR strategyemployees viewed as valuable assets, important in achieving
strategic objectives and delivering competitive advantage through communication, motivation and
involvement
Key features include:• training and development opportunities
•internal promotion•developmental appraisal
•consultation and empowerment•flat organisational structure
Soft HR strategySoft HR strategy
BenefitsBenefits Reward systems
designed to encourage creativity and quality
Allows individuals to fulfil their needs, improving motivation
High retention rates, low labour turnover and absenteeism reducing costs
DrawbacksDrawbacks Tension in role of trade
union as unclear Requires an
organisational culture which relies on commitment to long-term training and acceptance of need to delegate
Training costs may be high – for management as well as employees
Read the case study on pages 248 – 249 of your textbook
Answer Preliminary Questions 1 – 5 in no more than 30 minutes
Submit your answers for assessment at the end of the lesson
Task 5Task 5
Read the case study on Penguin BooksAnswer questions 1 - 4
Task 6 - homeworkTask 6 - homework