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6.1.1 Setting human resource objectives

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1 6.1.1 Setting human resource objectives
6 Decision making to improve human resource performance Draw a spider diagram to show how technology has affected decision making and activities in relation to human resources. 6.1.1 Setting human resource objectives AQA Business

2 6.1.1 Setting human resource objectives
In this topic you will learn about The value of setting human resource objectives Internal and external influences on human resource objectives and decisions

3 Human resource objectives
Human resource objectives are the targets that the function of a business responsible for all employee related issue want to achieve in a given time period These include: Employee engagement and involvement Talent development Training Diversity Alignment of values Number, skills and location of employees Voted #1 big company to work for. What do you think are the HR objectives at TGI Friday?

4 Employee engagement and involvement
Employee engagement is the degree of commitment shown by employees to their individual work as well as towards the business objectives as a whole Employee involvement is the amount of contributions an employee can make to their working practises and decision making Engaged and involved workers will: Be positive about the workplace Be active rather than passive Seek opportunities to influence the workplace Want to be involved in decision making Read the CIPD factsheet on employee engagement.

5 Discuss the aspects of the talent development cycle.
Talent development identifies those employees who have potential and nurturing this to help them progress Talented employees have the potential to help the business achieve its goals in the future It is important to retain these employees and give them opportunities to shine and progress Discuss the aspects of the talent development cycle.

6 Training Training is the process of equipping employees with the skills and knowledge necessary to carry out their job effectively Training can take time and money but the benefits of a productive and motivated workforce are considered greater With reference to Costa Coffee explain the difference between training and talent development. What do you think are the HR objectives at Costa?

7 Diversity Diversity is recognising and respecting the fact that all employees are different Employees have different priorities, backgrounds and beliefs An objective of diversity will aim to ensure that personal differences do not hinder progress in the workplace and that employees are not discriminated against on grounds of: Age Gender Race Religion Sexual orientation Does the BBC have a diverse workforce? What are the benefits? What evidence is there of a lack of diversity in the public sector?

8 Alignment of values In year2 you will learn more about corporate culture including: Handy’s task, role, power and person culture Hofstede’s national cultures Alignment of values is bringing the core values or beliefs of all employees together to focus on achieving a common aim This can lead to a strong corporate culture where all employees fit in to “the way we do things around here” mind set Value alignment is the foundation of corporate culture. Read more.

9 Number, skills and location of employees
Matching workforce skills, size and location to business needs This is important for the business to run smoothly and be able to match supply to demand Enabling all aspects of the business to function Meet new challenges to the business Meet seasonal fluctuations Respond to changes in the workforce e.g. people leaving, changing jobs internally, taking maternity or paternity leave How will changes to parental leave effect the ability of small and big businesses to match workforce skills, size and location to business needs?

10 Internal 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 How might a HR function respond to each of these corporate objectives?

11 In pairs A business is looking to increase profitability. It has identified 2 possible strategies. A move to more capital intensive production techniques Relocate abroad to a place with cheaper labour costs How might the HR objectives vary depending upon the option chosen?

12 Internal 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 Market development v. product development Consider how HR may respond to each of these operational issues

13 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 To what extent is the UK’s skills gap a major influence on HR objectives? UK nations have biggest skills gaps, says OECD

14 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 How will ethical and environmental issues affect HR objectives? BBC News Pensionable age should be 67

15 HR Approaches 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 approaches 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 You Tube Dilbert: Office Philosophy Video Office philosophy according to Dilbert.

16 HR approaches Soft HRM Hard HRM Opportunities for staff development
Training Talent development Internal promotion Empowerment Consultation Greater autonomy and responsibility Flatter organisational structure Control mechanisms Judgemental appraisals Centralised decision making Tall organisational structure Fixed term contracts Minimum wage External recruitment

17 In pairs think about the strengths and weaknesses of these 2 approaches to HRM and complete the table below Strengths Weaknesses Soft Hard

18 6.1.1 Setting human resource objectives
In this topic you have learnt about The value of setting human resource objectives Internal and external influences on human resource objectives and decisions


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