3.6.1 Setting human resource objectives


    3.6.1 Setting human resource objectives

    The value of setting human resource objectives

    Human Resources = this refers to the organisations employees in general, or the department responsible for their management

    Human Resource Management (HRM) = the actual management if the employees or department


    Areas included in HRM:

    • Health and safety
    • Employees rights (trade unions)
    • Hierarchy/promotion
    • Recruitment and selection
    • Legislation
    • Appraisals
    • Contracts
    • Training
    • Pay
    • Consultations
    • Motivation


    Importance of setting human resource objectives:

    • It gives employees something to work towards
    • Improves efficiency
    • Focus for decision making
    • Improves coordination between departments


    Internal and external influences on human resource objectives and decisions

    Internal influences:

    • Corporate objectives (e.g. an objective of cost minimisation results in the need for redundancies, delayering or other restructuring)
    • Operational strategies (e.g. introduction of new IT or other systems and processes may require new staff training, fewer staff)
    • Marketing strategies (e.g. new product development and entry into a new market may require changes to organisational structure and recruitment of a new sales team)
    • Financial strategies (e.g. a decision to reduce costs by outsourcing training would result in changes to training programmes)


    External influences:

    • Market changes (e.g. a loss of market share to a competitor may require a change in divisional management or job losses to improve competitiveness)
    • Economic changes (e.g. changes in the level of unemployment and the labour market will affect the supply of available people and their pay rates)
    • Technological changes (e.g. the rapid growth of social networking may require changes to the way the business communicates with employees and customers)
    • Social changes (e.g. the growing number of single-person households is increasing demand from employees for flexible working options)
    • Political & legal changes (e.g. legislation on areas such as maximum working time and other employment rights impacts directly on workforce planning and remuneration)



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