Business · Year 12 · Decision Making to Improve Human Resource Performance · Summer Term

Setting Human Resource Objectives

Learn how businesses establish specific, measurable goals for their workforce, such as improving employee retention or productivity, to align with overall corporate strategy.

TL;DR:This topic explores the 'people' part of the business plan, showing how strategic goals for the workforce are essential for achieving overall success.

• National Curriculum Attainment Targets
• AQA AS-Level Business (7131): 3.6.1 Setting human resource objectives

About This Topic

This topic, 'Setting Human Resource Objectives', is a cornerstone of A-Level Business studies, particularly within modules covering human resource management (HRM). It directly links to the broader concept of corporate strategy, demonstrating how managing people is not merely an administrative function but a strategic imperative. For Year 12 students, this topic builds upon their foundational knowledge of business objectives and introduces the idea that each functional area, including HR, must have goals that align with and support the organisation's overall mission. The discussion should be framed within the context of major UK examination board specifications (e.g., AQA, Edexcel), which require students to analyse the interrelationship between different business functions.

The core of this topic involves understanding that HR objectives provide a clear sense of direction for all aspects of workforce management, from recruitment and training to motivation and retention. Students will explore how these objectives are shaped by a variety of internal factors, such as the existing corporate culture and financial position, and external factors like employment legislation, economic conditions, and competitor behaviour. A key skill developed here is the ability to apply theoretical concepts, such as SMART criteria, to practical business scenarios, evaluating the potential impact of specific HR objectives on performance indicators like labour productivity, staff turnover, and absenteeism.

Key Questions

1. Explain the value of setting human resource objectives for a large retailer.
2. Analyse the internal and external influences on a company's human resource objectives.
3. Compare the human resource objectives of a start-up technology firm with those of an established manufacturing company.

Learning Objectives

• Define human resource objectives and explain their role within an organisation.
• Analyse the internal and external influences that shape a business's HR objectives.
• Explain the relationship between corporate objectives and human resource objectives.
• Apply the SMART criteria to formulate effective HR objectives.
• Evaluate the value of setting HR objectives for a given business scenario.

Key Vocabulary

Human Resource Management (HRM)	The strategic management of an organisation's workforce, or 'human capital', to meet its objectives.
Staff Turnover	The rate at which employees leave an organisation over a specific period, usually expressed as a percentage of the total workforce.
Labour Productivity	A measure of the output per employee over a given period. It is a key indicator of efficiency.
Absenteeism	The rate of employees' unauthorised absence from work, typically measured as a percentage of total working days.
Corporate Objectives	The specific, measurable goals that a business sets for itself to achieve its overall mission.
Employee Engagement	The level of an employee's emotional commitment and dedication to an organisation and its goals.

Watch Out for These Misconceptions

Common Misconception

HR objectives are only about hiring people and are separate from the 'real' business goals like making a profit.

What to Teach Instead

HR objectives are strategic goals that are directly linked to overall business performance. For example, an objective to reduce staff turnover directly impacts profitability by lowering recruitment and training costs.

Common Misconception

Every business wants to achieve the same HR objectives, like low staff turnover.

What to Teach Instead

HR objectives are highly specific to a business's context. A seasonal business might plan for high turnover, while a technology firm might prioritise attracting and retaining highly skilled talent above all else.

Common Misconception

You cannot measure 'soft' HR objectives like employee engagement or morale.

What to Teach Instead

While more complex to measure than financial data, 'soft' objectives can be quantified using tools like staff surveys, absenteeism rates, staff retention data, and productivity figures.

Active Learning Ideas

Case Study Analysis

A Major UK Supermarket

Students work in small groups to analyse a case study on a retailer like Tesco or Sainsbury's. They must identify the company's likely corporate objectives and then propose and justify a set of corresponding SMART human resource objectives.

45 min·Small Groups

Case Study Analysis

Internal vs. External Influences Sort

In pairs, students are given a set of cards, each with an influence on HR objectives (e.g., 'new minimum wage law', 'a high staff turnover rate', 'a recession'). They must sort these into 'internal' and 'external' categories and then rank them by importance for a chosen industry.

25 min·Pairs

Case Study Analysis

HR Objective Debate

Divide the class into two sides to debate a motion such as: 'This house believes that employee well-being is a more important HR objective than maximising labour productivity'. This encourages students to consider the trade-offs and complexities involved.

30 min·Whole Class

Real-World Connections

• The NHS regularly sets HR objectives focused on recruiting and retaining nurses and doctors to meet patient demand and reduce waiting lists.
• Following Brexit, many UK logistics and agricultural firms set new HR objectives to recruit from the domestic labour market due to changes in immigration rules.
• UK technology companies like DeepMind set HR objectives around creating a world-class work environment and benefits package to attract and retain top global talent in a highly competitive field.
• Retailers such as Marks & Spencer often have HR objectives linked to improving customer service, which they achieve through investment in staff training and development programmes.
• During the COVID-19 pandemic, businesses across the UK established HR objectives related to employee well-being and the effective management of remote working.

Assessment Ideas

Quick Check

Use mini-whiteboards for a quick-fire quiz where students must identify whether an influence on HR (e.g., a new law, a competitor's pay rise) is internal or external.

Peer Assessment

A structured essay question based on a short case study, requiring students to analyse the influences on a company's HR objectives and evaluate their likely effectiveness.

Peer Assessment

Provide students with a checklist based on the SMART criteria. They can then write their own HR objective for a given scenario and use the checklist to peer- or self-assess their work.

Frequently Asked Questions

What is the difference between a human resource objective and a human resource strategy?

An objective is a specific, measurable goal the business aims to achieve (e.g., 'reduce staff turnover by 10% within 12 months'). A strategy is the long-term plan of action that will be taken to achieve that objective (e.g., 'implementing a new flexible working policy and improving the staff benefits package').

How do HR objectives link to other departments like marketing or finance?

They are highly interdependent. A marketing objective to launch a new product might require an HR objective to recruit and train new sales staff. A finance objective to cut costs might lead to an HR objective to improve efficiency or reduce absenteeism.

Why is it important for HR objectives to be 'SMART'?

Using the SMART (Specific, Measurable, Achievable, Relevant, Time-bound) framework ensures that objectives are clear, focused, and trackable. It moves them from vague aspirations (e.g., 'improve motivation') to actionable targets that can be properly managed and evaluated.