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Internal and External Influences on HRM Objectives
Key Human Resource Objectives:
Employee engagement and involvement
Talent development
Training
Diversity
Alignment of values
Number, skills and location of employees
Internal influences on HR objectives:
Corporate objectives: E.g. an objective of cost reduction is likely to require HR to implement redundancies, job reallocations etc
Operational strategies: E.g. an introduction of new IT or other systems and processes may require new staff training, fewer staff
Marketing strategies: E.g. new product development and entry into a new market may require changes to organisational structure and recruitment of new sales return
Financial strategies: E.g. a decision to reduce costs by outsourcing training would result in changes to training programmes
External influences on HR objectives:
Market changes: E.g. a loss of market share to a competitor may require a change in management or job losses to improve competitiveness
Economic changes: E.g. changes in the level of unemployment and the labour market will affect the supply of available people and their pay rates
Technological changes: E.g. the rapid growth of social networking may require changes to the way the business communicates with employees and customers
Social changes: E.g. the growing number of single-person households is increasing demand from employees for flexible working options
Political and legal changes: E.g. legislation on areas such as maximum working time and other employment rights impacts directly on the workforce planning and remuneration
Internal and External Influences on HRM Objectives
Key Human Resource Objectives:
Employee engagement and involvement
Talent development
Training
Diversity
Alignment of values
Number, skills and location of employees
Internal influences on HR objectives:
Corporate objectives: E.g. an objective of cost reduction is likely to require HR to implement redundancies, job reallocations etc
Operational strategies: E.g. an introduction of new IT or other systems and processes may require new staff training, fewer staff
Marketing strategies: E.g. new product development and entry into a new market may require changes to organisational structure and recruitment of new sales return
Financial strategies: E.g. a decision to reduce costs by outsourcing training would result in changes to training programmes
External influences on HR objectives:
Market changes: E.g. a loss of market share to a competitor may require a change in management or job losses to improve competitiveness
Economic changes: E.g. changes in the level of unemployment and the labour market will affect the supply of available people and their pay rates
Technological changes: E.g. the rapid growth of social networking may require changes to the way the business communicates with employees and customers
Social changes: E.g. the growing number of single-person households is increasing demand from employees for flexible working options
Political and legal changes: E.g. legislation on areas such as maximum working time and other employment rights impacts directly on the workforce planning and remuneration