HRM/People Study Note Home | Latest HRM Resources from the tutor2u Blog | HRM/People

Revision Quizzes
HRM - Key Objectives of HRM
Author: Jim Riley Last updated: Sunday 23 September, 2012
HRM - Hard v Soft HRM
Objectives of HRM
Whilst the precise HR objectives will vary from business to business and industry to
industry, the following are commonly seen as important HR objectives:
Objective HR Actions
Ensure human
resources are
employed cost-
effectively
Pay rates should be competitive but not excessive
Achieve acceptable staff utilisation
Minimise staff turnover
Measure returns on investment in training
Make effective use
of workforce
potential
Ensure jobs have suitable, achievable workloads
Avoid too many under-utilised or over-stretched staff
Make best use of employees skills
Match the workforce
to the business
needs
Workforce planning to ensure business has the right number of staff
in the right locations with the right skills
Effective recruitment to match workforce needs
Training programmes to cover skills gaps or respond to changes in
technology, processes & market
Consider outsourcing activities that can be done better and more
cost-effectively by external suppliers
Get the right number and mix of staff at each location where the
business operates in multiple sites and countries
Maintain good Avoid unnecessary and costly industrial disputes
employer /
employee relations
Timely and honest communication with employees and their
representatives
Sensitive handling or potential problems with employees (e.g.
dismissal, redundancy, major changes in the business)
Comply with all relevant employment legislation



Hr outsourcing
Whatever your company's human resources requirements, there's an HR outsourcing firm out there to
meet those needs. Some HR outsourcing firms are generalists, offering a wide variety of services,
while others are specialists, focusing on specific areas such as payroll or recruiting. Depending on the
size of your business and how much control you want to maintain over HR functions, you can either
outsource all your HR tasks or contract for services a la carte.
The basic services offered by HR outsourcing firms may include:
Overseeing organizational structure and staffing requirements
Recruiting, training, and development
Tracking department objectives, goals, and strategies
Employee and manager training
Benefits administration
Employee orientation programs
Businesses that outsource HR are typically small-to-midsize firms with between 25 and 1,500
employees. These businesses view HR outsourcing as a strategic tool that relieves them of HR
responsibilities and enables them to focus on what they do best. In addition to allowing you to
concentrate on your core business activities, outsourcing provides some key benefits, including:
Providing you with skilled professionals who are focused specifically on HR
Helping you reduce and manage operating costs
Improving employee relations