Welcome to Human Resource Management!
Hello there! Welcome to one of the most interesting parts of your Business course. In this section, we are looking at Human Resource Management (HRM). While Finance deals with money and Marketing deals with customers, HRM is all about the most important "asset" any business has: its people.
Think about your favorite coffee shop or clothing brand. What makes it great? It’s usually the friendly staff, the skilled baristas, or the clever designers. This chapter, "Setting Human Resource Objectives," is about how a business decides what it wants to achieve with its workforce to make sure the whole company succeeds.
What are Human Resource Objectives?
An objective is simply a target or a goal. Therefore, Human Resource Objectives are the specific goals a business sets for its employees and the management of those employees.
Why do we set them?
1. To give the HR department a clear sense of direction.
2. To help motivate employees by giving them something to aim for.
3. To provide a way to measure success (did we hit our target or not?).
4. To ensure the "people" side of the business supports the overall mission of the company.
Quick Review: Remember that all functional objectives (like HR) should flow down from the main corporate objectives. If the company wants to grow, HR needs to set objectives to hire more people!
Key Human Resource Objectives
The AQA syllabus identifies several specific objectives that businesses might set. Don't worry if this list looks long; we can break it down into simple parts!
1. Employee Engagement
Engagement is different from just "being happy" at work. It’s about how committed an employee is to the business and its goals.
Analogy: Imagine a football team. A "happy" player might enjoy the nice kit and the free lunch. An "engaged" player cares about winning the trophy and puts in extra practice to help the team succeed.
2. Talent Development
This is about identifying which employees have the potential to grow and giving them the opportunities to move up into higher roles. It’s like a "grow your own" strategy for managers!
3. Training
This is a very common objective. A business might set a target like: "Ensure 100% of staff complete advanced customer service training by December." This ensures the workforce has the skills needed to do their jobs effectively.
4. Diversity
A diversity objective aims to ensure the workforce represents many different groups of people (different ages, ethnicities, genders, etc.).
Did you know? Businesses with diverse teams often make better decisions because they have many different perspectives and can understand a wider range of customers!
5. Alignment of Employee and Employer Values
This sounds fancy, but it just means making sure everyone believes in the same things. If a business values "Sustainability," HR will set objectives to hire people who also care about the environment. When everyone’s values match, the business runs much more smoothly.
6. Number, Skills, and Location of Employees
This is often called Human Resource Planning. A business needs to have:
- The right number of people (not too many, which is expensive; not too few, which leads to stress).
- The right skills (engineers for a tech firm, chefs for a restaurant).
- In the right location (staffing the new branch opening in Manchester, for example).
Key Takeaway: HR objectives aren't just about being "nice" to people; they are strategic goals designed to make the business more competitive and efficient.
How do businesses achieve these objectives?
There are two main "styles" or approaches to managing people. You can remember these as the "Hard" and "Soft" approaches.
Hard Human Resource Management
In this approach, employees are treated as resources—just like machinery or raw materials.
- Focus: Efficiency, cutting costs, and keeping control.
- Communication: Usually one-way (top-down). Managers tell, employees do.
- Pay: Often linked to output (how much you produce).
Example: A fast-food restaurant where every second is timed and staff follow strict, unchangeable rules.
Soft Human Resource Management
In this approach, employees are treated as valuable assets that can be developed over time.
- Focus: Motivation, long-term commitment, and two-way communication.
- Delegation: Employees are given more responsibility and a say in how they work.
- Training: Seen as an investment, not just a cost.
Example: A creative tech company like Google, where employees are encouraged to share ideas and work flexibly.
Common Mistake to Avoid: Many students think "Soft HRM" is always better. However, "Hard HRM" can be very effective for businesses that need to keep costs very low to survive, like discount retailers!
Key Takeaway: Hard HRM focuses on control and costs, while Soft HRM focuses on motivation and development.
Quick Memory Aid: The "Right" Rule
If you are struggling to remember what HR Planning objectives are about, just remember the "Four Rights". HR wants the:
1. Right number of people...
2. With the right skills...
3. In the right place...
4. At the right time!
Summary Checklist
Before you move on to the next chapter, make sure you can:
- Define what an HR objective is.
- List at least four types of HR objectives (e.g., Training, Diversity, Engagement).
- Explain why setting these objectives is valuable to a business.
- Describe the difference between Hard and Soft HRM approaches.
Don't worry if you find the "Alignment of Values" part a bit abstract. Just think of it as a business and its workers "being on the same page." You're doing great!