UNIT 6- HRM

  • Created by: Howzat
  • Created on: 11-06-18 14:51

Human Resource Objectives

These are targets that the function of a business responsible for all employee related issues want to be achieved in a set period of time. 

These include:

Employee Engagement 

Talent development 

Training 

Diversity 

Alignment of values

Number, skills and location of employees

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Internal and External influences on HR objectives.

Corporate objective- Internal 

  • Cost minimisation 
  • Market Growth 
  • Maximise shareholders' returns 
  • Increased competitiveness

Financial objectives and stratagies- Internal

  • Allocating capital expenditure (maintaining machines etc)
  • Cutting budgets 
  • Implementing profit centres 
  • Increasing ROCE- Every pound invested- make a return 
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Internal and External influences on HR objectives.

Operations and objectives strategies- Internal 

  • Labour vs Capital Intensive 
  • Innovation 
  • Effective Time Management- Spending time on the correct jobs 
  • Lean Production- Cutting out waste- while keeping quality 

Marketing and objective- External 

  • Low cost vs Differentiation (becoming different)
  • Market Development vs Product Development 
  • Ansoft

Workforce skills and availabilty- Internal 

  • Number of school leavers and graduates
  • Skills shortages vs Skills surplus
  • Demographics e.g Ageing Population 
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Internal and External influences on HR objectives.

Technological change- External 

  • Capital Intensity 
  • Skills

Market Conditions- External 

  • Growth, static or decline
  • Consumer habits

Political Factors- External

  • UK Legislation- Minimum wage, age discrimination etc
  • EU Directives- Work time directive, Paternity leave

Social Factors- External

  • Familty commitments 
  • Mothers returning to work and single parent families
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Hard HRH and Soft HRH

Hard HRH- Staff treated as a resource that must be managed in order for the business to control costs and outputs. 

Soft HRH- Staff treated as an asset to the business to contribute and help the business achieve its objectives. 

Soft HRH Strengths- Staff are more liklely to stay longer. Motivation is increased and relationship with management will be very good.

Hard HRH Strengths- Targets more likely to be met. More checking which will likely increase speed of production. 

Soft HRH Weaknesses- Staff could take advantage. Inexperienced staff. 

Hard HRH Weaknesses- Motivation is decreased. Lowers relationship with management. 

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Analysing Human Resource Performance

Human resource data is quantifiable information that can be used to measure workforce performance. 

Labour turnover- 

This is the rate of change in a firms workforce and is calculated as:

Number of staff leaving/Average number of staff *100

A good example of this is:

Car firm has 1000 full time employees in 1 year and of these, 50 employees leave the company. The labour turnover would be 50/100 *100 which = 5%.

Labour turnover is normally shown over a period of 1 year

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Analysing Human Resource Performance

Retension rates- This is a measure of a firms ability to keep its workforce within the business normally for more than one year.

Calculated as: Number of employees serving for more than 1 year/Average number of staff. 

Low retension rates may present a threat to a business. 

Labour Productivity- 

Employee costs- all costs associated with the workforce. 

Calculated as: Employee costs/Revenue *100

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