H UMAN R ESOURCE S TRATEGIES U NDERSTANDING HR O BJECTIVES AND S TRATEGIES “The less people know about what is really going on, the easier it is to wield power and authority.” Prince Charles BUSS3.16 HR Objectives and Strategies

U NDERSTANDING HR O BJECTIVES AND S TRATEGIES I N THIS TOPIC YOU WILL LEARN ABOUT : HR Objectives Assessing internal and external influences on HR objectives HR Strategies BUSS3.16 HR Objectives and Strategies

H UMAN RESOURCE O BJECTIVES BUSS3.16 HR Objectives and Strategies Corporate Objectives Functional Objectives HR Objectives The targets that the HR function of a business wants to achieve in a given time period

H UMAN RESOURCE MANAGEMENT HRM involves making the most effective use of employees to help achieve corporate aims How can a business measure workforce performance? What financial measures can a business use to motivate employees? What non financial measures can a business use to motivate employees? What are the benefits of having a motivated workforce? BUSS3.16 HR Objectives and Strategies Recap AS People in Business You will need access to the internet to watch this clip How to manage staff!

HR O BJECTIVES Matching workforce skills, size and location to business needs Enabling all aspects of the business to function Meet new challenges to the business Workforce plans, which are studied in the next unit 3.17, are a crucial part of meeting this objective 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 BUSS3.16 HR Objectives and Strategies Explain the relationship between minimising labour costs and gaining an optimum resource mix as studied in unit 3.12 Scale and Resource Mix

HR O BJECTIVES Making full use of workforce potential Regular appraisals and skills audits Internal promotion Development opportunities Maintaining good employee/employer relations Effective communication Good industrial relations Avoiding disputes Avoiding negative publicity Unit 3.19 Effective employee/employer relations looks at this topic in more detail BUSS3.16 HR Objectives and Strategies

HR O BJECTIVES A N EXAMPLE : H EWLETT P ACKARD To help HP employees share in the company's success that they make possible; to provide people with employment opportunities based on performance; to create with them a safe, exciting and inclusive work environment that values their diversity and recognises individual contributions; and to help them gain a sense of satisfaction and accomplishment from their work. Underlying beliefs supporting this objective: HP's performance starts with motivated employees; their loyalty is key We trust our employees to do the right thing and to make a difference Everyone has something to contribute: It's not about title, level or tenure An exciting, stimulating work environment is critical to invention A diverse workforce gives us a competitive advantage Employees are responsible for lifelong learning Source: BUSS3.16 HR Objectives and Strategies

I NTERNAL AND EXTERNAL INFLUENCES ON HR OBJECTIVES Corporate objectives Cost minimisation Market growth Maximise shareholders’ returns Increased competitiveness Financial objectives and strategies Allocating capital expenditure Cutting budgets Implementing profit centres Increasing ROCE BUSS3.16 HR Objectives and Strategies How might a HR function respond to each of these corporate objectives? A business is looking to increase ROCE and shareholders’ returns. It has identified 2 possible strategies. 1.A move to more capital intensive production techniques 2.Relocate abroad to a place with cheaper labour costs How might the HR objectives vary depending upon the option chosen?

I NTERNAL AND EXTERNAL INFLUENCES ON HR OBJECTIVES Operations objectives and strategies Labour v. Capital intensive Innovation Effective time management Lean production Marketing objectives and strategies Low cost v. differentiation Ansoff’s Matrix BUSS3.16 HR Objectives and Strategies Consider how HR may respond to each of these operational issues How would each strategy effect the HR function’s criteria during a selection process? How would HR objectives be different if a strategy of product development was chosen over one of market development?

I NTERNAL AND EXTERNAL INFLUENCES ON HR OBJECTIVES Workforce skills and availability Number of school leavers and graduates Skills shortages v. Skills surplus Demographics e.g. ageing population, immigrants Technological change Capital intensity Skills Market conditions Growth, static or decline Consumer habits BUSS3.16 HR Objectives and Strategies

I NTERNAL AND EXTERNAL INFLUENCES ON HR OBJECTIVES Political factors UK legislation Minimum wage Age discrimination EU directives Work time directive Paternity leave Social factors Family commitments Mothers returning to work Single parent families Students working to fund university BUSS3.16 HR Objectives and Strategies You will need access to the internet to watch this clip At what age do you hope to retire?

HR STRATEGIES The overall way in which a business treats its staff Has a direct impact upon the level of performance, motivation of employees and management styles There are 2 opposing HRM strategies to study here Hard HRM Staff are treated as a resource that must be managed in order for the business to control costs and output Soft HRM Staff are treated as an asset to the business that can contribute and help the business achieve its objectives BUSS3.16 HR Objectives and Strategies You will need access to the internet to watch this short clip

HR S TRATEGIES “Soft” HR Opportunities for staff development Training Internal promotion Empowerment Consultation Greater autonomy and responsibility Flatter organisational structure “Hard” HR Control mechanisms Judgemental appraisals Centralised decision making Tall organisational structure Fixed term contracts Minimum wage External recruitment BUSS3.16 HR Objectives and Strategies

A CTIVITY : S OFT V. H ARD HR S TRATEGIES I N PAIRS THINK ABOUT THE STRENGTHS AND WEAKNESSES OF THESE 2 STRATEGIES TO COMPLETE THE TABLE BELOW StrengthsWeaknesses Soft Hard BUSS3.16 HR Objectives and Strategies