Chapter 16: Human Resources Management Strategy

What is Human Resource Management Strategy?

Refers to the long-term approach used by a business to recruit, train, reward, and retain employees in a way that supports the overall business strategy

What will happen if there isn't a Human Resource Plan?

• The wrong number of employees, many with inappropriate skills

• Unsuitable payment methods

• Inappropriate employment contracts for different types and grades of employee

• Poor employee performance

• Poor application of information technology (IT) to HR issues

What is hard HRM?

An approach to managing people that treats employees primarily as resources to be used efficiently to achieve organizational goals

What are the advantages of Hard HRM?

•Improves efficiency and productivity1. Improves efficiency and productivity

• Cost control

•Clear performance standards

•Supports short-term business goals

•Strong managerial control

What are the disadvantages of Hard HRM?

•Low employee motivation

•High employee turnover

•Poor workplace relationships

•Limited creativity and innovation

•Negative organizational culture

What is Soft HRM?

An approach to managing people that views employees as valuable assets and partners rather than just resources

What are the advantages of Soft HRM?

•High employee motivation and commitment

•Better job satisfaction

•Encourages teamwork and cooperation

•Improves long-term performance

•Supports creativity and innovation

What are the disadvantages of Soft HRM?

•High costs

•Time-consuming

•Less managerial control

•Difficult to measure performance

•Not suitable for all situations

What is employment contract?

A legally binding agreement between an employer and an employee

What are the advantages of employment Contracts?

•They help satisfy employees’ safety or security needs

•They can result in employee loyalty to the business being high

•Employers are usually prepared to finance training programmes for employees on these contracts which will retain workers for a longer period of time

What are the disadvantages of employment contracts?

•Labour costs become fixed costs

•The contracts are inflexible

What is temporary employment Contract?

A short-term, legally binding agreement between an employer and an employee, where employment is for a limited period of time or to complete a specific task or project

What is Zero hour contract?

A type of employment contract in which the employer does not guarantee any minimum number of working hours, and the worker is paid only for the hours actually worked.

What is a gig contract?

A type of work arrangement in which individuals are hired on a short-term or task-by-task basis, often as independent contractors, and are paid for completing specific jobs