Setting Human Resource Objectives (AQA A Level Business): Revision Note

The value of setting human resource objectives

• Human resource (HR) objectives are clear targets that help a business plan and manage its workforce more effectively

• Setting them has several benefits:

1. Improves business performance

   • Aligning employee effort with business goals increases productivity and efficiency

2. Supports strategic planning

   • Clear HR objectives guide recruitment, training, and organisational development

3. Enables measurement and control

   • Progress can be tracked using HR metrics like staff turnover or engagement levels

4. Helps attract investment and leadership support

   • Data-backed goals reassure senior managers and investors that the business is managing its people effectively

Different types of human resource objectives

Soft versus hard HRM approaches

• Businesses use different approaches to meet their HR objectives. These are typically grouped into soft and hard human resource management (HRM) strategies:

  • Soft HRM

    • Focuses on employees as valuable long-term assets

    • Emphasises motivation, engagement, and development

    • Often linked to higher staff retention and job satisfaction

    • E.g. The John Lewis Partnership applies soft HRM by giving employees a stake in the company and a voice in key decisions

  • Hard HRM

    • Treats employees more like a resource to control and minimise costs

    • Focuses on efficiency, short-term contracts, and minimal employee involvement

    • Often linked to lower labour costs but higher labour turnover

    • E.g. Sports Direct has been criticised for using zero-hour contracts, a hallmark of hard HRM

• Most businesses combine elements of both approaches depending on their strategy, budget, and industry