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