Human resource objectives

Welcome to Human Resource (HR) Objectives!

Ever wondered what makes a company like Google or Apple so successful? It’s not just their tech; it’s their people. In this chapter, we are diving into Human Resource Objectives. This is all about how businesses set goals for their workforce to make sure they have the right people, with the right skills, doing the right jobs at the right time.

Don’t worry if this seems like a lot to take in—we’ll break it down into simple, bite-sized pieces that make sense for any business, from a local cafe to a global corporation.

1. Why is Managing Human Resources So Important?

Human Resource Management (HRM) is the functional area of a business that looks after the employees. It is vital because people are often a business’s most expensive—and most valuable—resource.

The Interrelationship with Other Functions

HR doesn’t work in a vacuum. It connects with every other part of the business:

• Finance: Finance sets the budget for wages. HR must ensure they don't hire more people than the business can afford.
• Operations: Operations needs a certain number of workers to meet production targets. HR makes sure those workers are recruited and trained.
• Marketing: If Marketing promises "the best customer service," HR must hire and train friendly, helpful staff to deliver on that promise.

Improving Competitiveness

A business with highly skilled, motivated staff will produce better quality work and be more efficient than its rivals. This gives the business a competitive advantage.

The Global Impact

For global businesses, HR is even more complex. They have to manage different labor laws, cultural differences, and language barriers across different countries. How they manage these "human resources" globally can make or break their international success.

Key Takeaway: HR is the "glue" that holds the business together. Without effective HR objectives, the other departments (Finance, Marketing, Operations) wouldn't have the people they need to succeed.

2. Key Human Resource Objectives

Businesses set specific targets for their HR department. According to your syllabus, there are four main areas you need to know:

1. Employee Engagement

This is about how committed an employee is to the business and its goals. An engaged employee isn't just someone who shows up for a paycheck; they actually care about the business's success.
Example: An engaged waiter at a restaurant might suggest a specific dessert to a customer to help increase sales, rather than just taking the order and leaving.

2. Diversity

Diversity means having a workforce made up of people from different backgrounds, ages, genders, and ethnicities.
Why it matters: A diverse team brings different ideas and perspectives, which helps with problem-solving and understanding a wider range of customers.

3. Number and Skill of Employees

The business must have the right quantity of staff and the right quality (skills).
• If they have too many staff, costs are too high (inefficient).
• If they have too few, they can't meet customer demand.
• If staff lack skills, quality drops.

4. Retention

Retention is the ability of a business to keep its employees. High staff turnover (people leaving) is expensive because the business has to spend money on recruiting and training new people.
Analogy: Think of a bucket with holes in it. If you keep losing staff (water), you have to keep pouring in new ones just to stay at the same level. Retention is about plugging those holes!

Quick Review Box:
To remember these objectives, use the mnemonic D.E.R.N.:
D - Diversity
E - Engagement
R - Retention
N - Number and skills

3. Influences on HR Plans and Objectives

Why does one business focus on diversity while another focuses on cutting the number of staff? It depends on Internal and External influences.

Internal Influences (Inside the business)

• Resources: If the business has a small budget (Finance), they might set an objective to reduce staff numbers or limit training.
• Business Culture/Ethics: An ethical business might set high targets for diversity and fair pay, even if it costs more.

External Influences (Outside the business)

• Technology: This is a huge influence! Tele-working (working from home) and automation mean businesses might need fewer physical offices but more staff with IT skills.
• The Labour Market: If there is a "skills shortage" in the country, the HR objective might shift toward training current staff rather than recruiting new ones.
• Competition: If a rival business is offering higher wages, your HR objective might focus on retention and increasing benefits to stop your best staff from leaving.
• Market Conditions: In a recession, HR might focus on "right-sizing" (reducing staff). in a boom, they focus on rapid recruitment.

Did you know?
Developments in technology have led to the "Gig Economy." HR departments now often manage a mix of full-time staff and freelance contractors who work via apps!

4. Common Mistakes to Avoid

• Mistake: Thinking HR objectives are the same for every business.
Reality: A startup tech company will have very different HR objectives (focusing on high skills and creativity) compared to a local supermarket (focusing on number of staff and basic training).
• Mistake: Confusing "Engagement" with "Satisfaction."
Reality: A "satisfied" employee is happy with their pay and desk. An "engaged" employee is motivated to help the business reach its goals.

Final Summary: The Big Picture

Human Resource Objectives are targets set to ensure the workforce is managed effectively. By focusing on Engagement, Diversity, Retention, and Skills, a business can improve its competitiveness. These objectives are constantly changing based on internal factors like budgets and external factors like new technology and the labor market.

Don't worry if this seems tricky at first! Just remember: HR is about getting the "People Power" right so the rest of the business can run smoothly.