3.16 understanding hr objectives and strategies - moodle

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What do you remember from
‘Operational Strategies’ ….

Test what you’ve learned!

Understanding HR Objectives
and Strategies

Learning Objectives

By 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?

Minimising labour costs.

TRUE

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 size
to business needs

Innovation, changes in production techniques, technological
change or expansion all lead to a change in the size of the
workforce a company needs.
Rolls Royce 1. Why do you think that
Rolls-Royce created job
In Jan 2008, Rolls-Royce announced plans loses confined to the
to cut it’s global workforce of nearly 40,000 managerial, professional
by just under 6% to boost and efficiency and and clerical staff?
competitiveness. The 2,300 job losses were
confined to the companies managerial, 2. What are the benefits and
professional and clerical staff. Rolls-Royce downsides to this?
said that it would continue to recruit
graduates, apprentices and those ‘required 3. What other functional
directly to deliver growth’. area does this link to?

Making full use of the workforce’s
potential

It is inefficient for a business to under-utilise the skills of it’s
employees, in just the same way that it should make full use of
it’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 relations

When the relationship between workers and management
breaks down, there is often press coverage which causes bad
publicity for a business.
Abercrombie & Fitch Apple
Read the case study and Read the case study and
highlight 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 the
business? business?

Internal and External Influences on
HR objectives
Objectives selected by the HR function cannot be chosen in
isolation and must take into account influences from within and
outside the organisation.

Group 1 – List any
internal influences on 2 minutes
HR Objectives.

external influences on
HR objectives.

Internal and External Influences on
HR objectives
Objtives selected by the HR function cannot be chosen in isolation
and must take into account influences from within and outside
the organisation.
Internal influences on HR objectives External influences on HR objectives
1. 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
redeployment necessary. competitor may force a business to cut

4.
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 external
factors influencing objectives.

Write down 2 advantages of
‘soft’ HR Management.

Write down 1 definition for
HRM

Re-cap Learning Objectives

You 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.

3.16 understanding hr objectives and strategies - moodle

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