Chapter 45:
Setting human resource (HR) objectives:
Definition: Human resource management is a common term for the personal function. HR professionals think
of their roles as central to the overall goals of the business, and set their HR objectives accordingly.
45.1: Human resource objectives:
Human resource management involves a wide range of activities. The overall aim is to maximise the
contribution of employees on an individual and group level to the organisations overall objectives. To do
these specific aims need to be met.
Employee engagement and involvement:
Companies simply cannot assume that hiring and training staff is enough. The problem is that there is no
reason to suppose that HR professionals have any real solution to this problem. Employee engagement
drives performance. Engaged employees look at the whole of the company and understand their purpose,
where, and how they fit in. This leads to better decision-making. Organisations with an engaged workforce
outperform their competition. The HR approach is to pretend that employee engagement can be achieved
through financial devices and bureaucratic devices such as staff appraisal.
Talent development:
For many businesses the key to long – term success is training and motivation. In some circumstances,
though, it is understandable that the focus may be on the talented few rather than the entire staff. For
other businesses, graduate ‘fast track’ schemes have long existed, with the view that this with extra talent
should be given every opportunity for career progression as rapid as their talents allow. There is a risk
though that the focus on the talented few could seem to come at the expense of the majority. This is
unlikely to help morale.
Training:
Professor Herzberg once said that ‘the more a person can do, the more you can motivate them.’ Therefore,
training people to be able to do more, and do it with confidence, represents a big potential step forward for
a business.
Diversity:
Some companies have set themselves the objective of diversifying their middle and senior management
teams. They have been encouraged by statements such as this, by David Tyler, Sainsbury’s chairman:
‘Shareholders benefit when boards have a diversity of skills, background, and experience. That’s the way
the most effective boards tend to be composed – with both men and women playing a full part.’
2014 – two – thirds of Britain’s top 100 companies had no non-white full time executive board members.
The case for diversity is clear, the drive to achieve it is less so.
,Alignment of values:
Business author Jim Collins suggests that firms should work at identifying their core values, then
making sure that every employee sees these values as central to decision – making throughout the
business. Accordingly, recruitment and induction training should focus on making sure that there is a
true fit between staff and the values. This should not only ensure that ethical issues are tackled in a
consistently moral way, but should also help build a sense of purpose throughout the staff - which
may help with motivation and retention levels.
The number, skills and location of employees:
The human resource function is responsible for making sure the business has the right number of
people at the right time, with the right skills and attributes. A lack of appropriate staff can lead to
delays for customers, rushed and poor quality work, and an inability to accept some contracts. It is
easier when recruiting. A further factor is the location of staff, for many staff flexibility is impossible,
so careful planning is required to make sure that they have the right manager.
45.2: Internal and external influences on HR objectives and decisions:
Internal influences:
The past experiences, character and ambitions of any newly appointed chief executive.
Any financial pressures felt by the business, for example cash flow problems requiring a
quick fix.
Changing marketing objectives.
Internal policies and procedures.
Impact of Legislation.
External influences:
Economic factors.
Legal factors.
The social and ethical climate.
Whether the business is a stock market – quoted plc or a large family – run business. This
affects the timescales.
45.3 HR strategies: soft and hard HRM:
Hard HRM:
Hard HRM is a staff management system in which workers are seen as a resource that
needs to be controlled to achieve the highest profit and a competitive advantage.
Advantages:
The outcomes should be predictable because employees do as they are told.
Employees should be easily replaceable.
Managers retain control for decision – making and this reduces the risk of major errors
being made.
, Disadvantages:
A possible failure to build on the skills, experience and insights of the employees; this can
lead to dissatisfied employees and low morale.
A danger that the organisation as a whole is at risk because it relies so heavily on the senior
managers, if they make mistakes the business as a whole could fail because there is no
input from lower levels.
Soft HRM:
This approach treats employees as an essential resource in your business—if not the most important
one of all. This makes it a more progressive outlook. One where you treat staff members as
individuals. The soft HRM model focus is for the needs of your staff, including rewards and
motivation.
Advantages:
The organisation is building on the skills and experience of their employees; this may
enable the business to be more creative, more innovative and differentiated from the
competition.
The organisation may be able to keep and develop highly skilled employees with
expectations of a career within the business.
Individuals throughout the business are encouraged to contribute, which may make the
organisation more flexible and adaptable to changing market conditions.
Disadvantages:
Time is taken in discussion and consultation rather than ‘getting the job done’.
Employees may not have the ability or the inclination to get involved; they may just want to
be told what to do and be rewarded for it. In this case a soft approach to HRM may be
inappropriate and ineffective.