This revision presentation introduces the concept of HRM (human resource management) and outlines why it has become more important as a source of competitive advantage. The most common HRM objectives are outlined alongside the key internal and external influences affecting HRM, Finally the contrast between "soft" and "hard" HR strategies is introduced.

1. Introduction to
HR Objectives &
Strategies

2. What is Human Resource Management?
“The design, implementation
“The design, implementation
and maintenance of
and maintenance of
strategies to manage people
strategies to manage people
for optimum business
for optimum business
performance” [CIPD]
performance” [CIPD]

3. Why HRM has become more important?
• Most businesses now provide services rather than produce
goods – people are the critical resource in the quality and
customer service level
• Competitiveness requires a business to be efficient and
productive – this is difficult unless the workforce is well
motivated, has the right skills and is effectively organised
• The move towards fewer layers of management hierarchy
(flatter organisational structures) has placed greater
emphasis on delegation and communication

4. Strategic tools of HRM
Workforce planning
Workforce planning
Recruitment & training
Recruitment & training
Training & development
Training & development
Motivating staff
Motivating staff
Organisational structures
Organisational structures

5. Common HRM Objectives (1)
Objective HR Actions
Ensure human Pay rates should be competitive but not
resources are excessive
employed cost- Achieve acceptable staff utilisation
effectively Minimise staff turnover
Measure returns on investment in training
Make effective Ensure jobs have suitable, achievable
use of workforce workloads
potential Avoid too many under-utilised or over-
stretched staff
Make best use of employees skills

6. Common HRM Objectives (2)
Objective HR Actions
Match the Workforce planning to ensure business has the right number of staff in
workforce to the right locations with the right skills
the business Effective recruitment to match workforce needs
needs Training programmes to cover skills gaps or respond to changes in
technology, processes & market
Consider outsourcing activities
Get the right number and mix of staff at each location where the
business operates in multiple sites and countries
Maintain Avoid unnecessary and costly industrial disputes
good Timely and honest communication with employees and their
employer / representatives
employee Sensitive handling or potential problems with employees (e.g. dismissal,
relations redundancy, major changes in the business)
Comply with all relevant employment legislation

7. Internal influences on HR objectives
Corporate objectives E.g. an objective of cost reduction is likely to require
HR to implement redundancies, job reallocations etc
Operational E.g. introduction of new IT or other systems and
strategies 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

8. External influences on HR objectives
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. the recession of 2009/10 placed great pressure on HR
departments to reduce staff costs and improve productivity
Technological E.g. the rapid growth of social networking may require
changes 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 E.g. EU legislation on areas such as maximum working time
changes and other employment rights impacts directly on workforce
planning and remuneration

9. “Hard” versus “Soft” HRM
Hard
Hard Soft
Soft
Treats employees simply
Treats employees simply Treats employees as the
Treats employees as the
as a resource of the
as a resource of the most important resource
most important resource
business.
business. in the business and a
in the business and a
Strong link with
Strong link with source of competitive
source of competitive
corporate business
corporate business advantage
advantage
planning – what
planning – what Employees are treated as
Employees are treated as
resources do we need,
resources do we need, individuals and their
individuals and their
how do we get them and
how do we get them and needs are planned
needs are planned
how much will they cost
how much will they cost accordingly
accordingly

10. Hard HRM summary
Focus: identify workforce needs of the business and recruit & manage
accordingly (hiring, moving and firing)
Key features
Short-term changes in employee numbers (recruitment, redundancy)
Minimal communication, from the top down
Pay – enough to recruit and retain enough staff (e.g. minimum wage)
Little empowerment or delegation
Appraisal systems focused on making judgements (good and bad) about staff
Taller organisational structures
Suits autocratic leadership style

11. Soft HRM summary
Focus: concentrate on the needs of employees – their roles, rewards,
motivation etc
Key features
Strategic focus on longer-term workforce planning
Strong and regular two-way communication
Competitive pay structure, with suitable performance-related rewards (e.g.
profit share, share options)
Employees are empowered and encouraged to seek delegation and take
responsibility
Appraisal systems focused on identifying and addressing training and other
employee development needs
Flatter organisational structures
Suits democratic leadership style

12. Which is better – hard or soft?
Hard
Hard Soft
Soft
Might result in a more cost-
Might result in a more cost- Seen as an approach which
Seen as an approach which
effective workforce where
effective workforce where rewards employee
rewards employee
decision-making is quicker
decision-making is quicker performance and motivates
performance and motivates
and focused on senior
and focused on senior staff more effectively.
staff more effectively.
managers. But a genuinely
managers. But a genuinely However, be too “soft” and
However, be too “soft” and
“hard” approach might
“hard” approach might when all the employee
when all the employee
expect to suffer from higher
expect to suffer from higher benefits are added up, the
benefits are added up, the
absenteeism and staff
absenteeism and staff cost of the workforce may
cost of the workforce may
turnover and less successful
turnover and less successful leave a business at a
leave a business at a
recruitment.
recruitment. competitive disadvantage.
competitive disadvantage.

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