Upload
astrid
View
32
Download
1
Embed Size (px)
DESCRIPTION
HRM objectives. HRM v Personnel. HRM sees the activities with the workforce as key to corporate objectives. The aim of HRM is to make the best use of the workforce for the company to achieve its goals. - PowerPoint PPT Presentation
Citation preview
HRM objectives
HRM v Personnel
• HRM sees the activities with the workforce as key to corporate objectives. The aim of HRM is to make the best use of the workforce for the company to achieve its goals.
• Personnel management considers all the elements of managing people as separate elements / unrelated tasks & ignores the wider picture.
What activities do HRM do?
• Recruitment• Pay• Training• Appraisal• Motivation
Why HRM has become more important?
• Most businesses now provide services rather than produce goods – people are the critical resource in the quality and customer service level
• Competitiveness requires a business to be efficient and productive – this is difficult unless the workforce is well motivated, has the right skills and is effectively organised
• The move towards fewer layers of management hierarchy (flatter organisational structures) has placed greater emphasis on delegation and communication
HUMAN RESOURCE OBJECTIVES
Corporate Objectives
Functional Objectives
HR ObjectivesThe targets that the
HR function of a business wants to achieve in a given
time period
HRM objectives include…
HRM objectives
1. Matching the workforce to the needs of the business
2. Making full use of the workforce’s potential
3. Minimising labour costs
4. Maintaining good employee/employer relations
1. Matching the workforce to the needs of the business
• Workforce planning to ensure business has the right number of staff in the right locations with the right skills
• Effective recruitment to match workforce needs
• Training programmes to cover skills gaps or respond to changes in technology, processes & market
• Consider outsourcing activities
• Get the right number and mix of staff at each location where the business operates in multiple sites and countries
What would happen if you had the wrong number / type of
staff?
2. Making full use of the workforce’s potential
• Regular appraisals and skills audits
• Internal promotion
• Development opportunities
• Ensure jobs have suitable, achievable workloads
• Avoid too many under-utilised or over-stretched staff
• Make best use of employees skills
Productivity- how can it help the
corporate objectives?
Customer service
Ratios?
Marketing
Prices
Finances
3. 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
• Pay rates should be competitive but not excessive
• Achieve acceptable staff utilisation
• Minimise staff turnover
• Measure returns on investment in training
Harrods staff
Ryanair staff(holding their ‘modelling’ photo from calendar!)
Tightly controlled costs; work long hours and have
multiple skills. Lower staffing levels
More generous staffing levels, well paid staff
Staff are currently leaving RBS due to govt pressure to NOT pay annual bonuses (govt owns 80% stake in RBS through bank bail out). Staff leaving for competitor companies.
4. Maintaining good employee / employer relations
– Effective communication
– Good industrial relations
– Avoiding disputes
– Avoiding negative publicity
– Complying with all relevant labour laws
Recent strike action
In Paris, around 20 museums, art galleries and
public monuments had suffered either total or
partial closure as public sector workers downed
tools over what they described as an attempt to
"dismantle and destabilise" France's flagship cultural
sector.
BT shed 10,000 jobs.
• In Nov 2008 BT announced that it intending to cut 10,000 jobs from its global workforce of 160,000.
• The news of the cuts sent BT shares 7.5% higher.
• Many of the job losses were in the UK.
1. Which HR objective might have prompted this decision?
2. Which corporate objective might this decision help BT to fulfil?
Are you Hard or Soft?
HR strategies
Sees people as an unwelcome cost
People are an input to get work done
Managers are the ‘thinkers’ – give
instructions to workers!
Sees people as an unwelcome cost
People are an input to get work done
Managers are the ‘thinkers’ – give
instructions to workers!
HardHardSees people as those
who can add value to the business.
A business needs to develop their employees skills, interests & abilities
Managers are facilitators – to coach & help staff to
do their work properly.
Sees people as those who can add value to the
business.
A business needs to develop their employees skills, interests & abilities
Managers are facilitators – to coach & help staff to
do their work properly.
SoftSoft
HR strategies
Treats employees simply as a resource of the
business.Strong link with
corporate business planning – what
resources do we need, how do we get them and how much will they cost
Treats employees simply as a resource of the
business.Strong link with
corporate business planning – what
resources do we need, how do we get them and how much will they cost
HardHardTreats employees as the most important resource
in the business and a source of competitive
advantageEmployees are treated as
individuals and their needs are planned
accordingly
Treats employees as the most important resource
in the business and a source of competitive
advantageEmployees are treated as
individuals and their needs are planned
accordingly
SoftSoft
Evaluation skills
• What are the benefits of having a ‘hard’ HRM strategy?
• Staff are well monitored• Costs are minimised,• Companies can increase /
reduce output when needed.
• Greater centralisation / control by managers
Evaluation skills
• What are the benefits of having a ‘soft’ HRM strategy?
• High levels of employee participation,
• Higher motivation • Greater commitment from staff, • Lower turnover, • Less absenteeism • Greater productivity!
Your go
Read ‘Halfords’ Case studyComplete Q’s
To discuss Preliminary
Q’s
Use whiteboard to plan answer to Hard
or Soft Q.
Homework
• Read chapter 15 p 180-188• Make own notes on
Internal & external factors on HRM objectives.
• Make more revision notes on Hard & Soft HRM strategies.