Q1) Analyse two potential benefits of Out and About plc’s current ‘soft’ Human Resource Management strategy.
Human Resource Management Strategy is the process of making the best use of an Organisation’s employees in order to achieve its human resource objectives. A soft HRM strategy recognises that the workforce are a valuable asset to the business and are crucial to achieve the organisation’s objectives. Soft HRM has many benefits to Out and About plc- it’s main benefit is to improve staff motivation. Out and About plc has shown this in many ways.
Firstly, all staff are on permanent contracts providing them with greater security. This allows for the workers to provide a greater level of commitment to Out and About plc as it is their major career. This greater level of commitment will in turn produce greater labour productivity as workers who feel loyal and dedicated to a company will have a much more enthusiastic and hardworking approach as opposed to a worker who does not feel greatly involved and concerned of the companies on goings. Furthermore, permanent staff are more likely to commit to training in order to acquire skills that can boost their career- which will again benefit the company. However, it is important to consider whether or not permanent contracts should be used for ALL staff as some groups of staff will most likely not be required at all times. Working in shifts could increase labour productivity as workers are more likely to be ‘fresh’ and more focused on a job in comparison to a member of staff who is to ‘go through the motions’ on a daily basis. Also, permanent contracts for all staff would be a lot more costly than using temporary staff. Out and About plc will need to decide which staff require permanent contracts and which do not to see any benefits financially.
Secondly, the company’s current statistics show that the average staff age is 45 and that the labour turnover is 5 percent (which is well below the...
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