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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:


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 employer / employee relations

Avoid unnecessary and costly industrial disputes
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

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