Setting 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 
  • Employee engagement and involvement - the degree of commitment shown by employees their individual work as well as towards the business objectives as a whole 
  • Talent development - identifies those employees who have potentialand nurturing this to help them progress
  • Training - the process of equipping employees with the skills and knowledge necessary to carry out their job effectively 
  • Diversity - recognising and respecting the fact that all employees are different 
  • Alignment of values - bringing the core values or beliefs of all employees together to focus on acheiving a common aim 
  • Number, skills and location of employees - matching workforce skills, size and location to business needs

Internal influences on HR objectives 

  • Corporate objectives 
  • Financial objectives and strategies 
  • Operations objectives and strategies 
  • Marketing objectives and strategies 

External influences on HR objectives 

  • Workforce skills and availability 
  • Technological change 
  • Market conditions 
  • Political factors 
  • Social factors

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

Human resource data 

  • Quantifiable information that can be used to measure workforce 

Labour turnover 

  • The rate of change in a firms labour force 

Number of staff leaving x 100

Average number of staff 

Advantages of labour turnover 

  • Capital intensive - it is an advantage as the business can cut labour costs and just focus on machinery 
  • Build relationships with customers 
  • More skills and experience within the business 

Disadvantages of labour turnover 

  • Pay more to train new staff 
  • If they have high turnover, they would keep their training low cost, so they save money

Retention rates 

  • Are a measure of a firm's ability to keep its workforce within the business normally for more than one year 

Number of employees serving for more than 1 year x100

Average number of staff

Labour productivity 

  • Labour productivity is a measure of workforce performance that looks at output per worker

Total output 

Number of workers 

Employee costs as a percentage of turnover 

  • Employee costs are all the costs associated with the workforce 

Employee costs x100


Labour cost per unit 

  • A measure of the average employee cost per unit of output 

Total labour costs 

Total output 

Use of data for human resource decision making and planning 

  • Human resource planning to identify current staffing levels and needs and future staffing levels and needs in prder to be able to take action to ensure future needs are met 

Job design

  • The way in which jobs are arranged in the workplace in order to reduce boredom and employee dissatisfaction 
  • Includes the number and variety of takes to be undertaken by an employee 

Improving job design 

  • Job enrichment is an increase in the level of responsibility that an employee has in order to increase motivation 



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