Objectives are put into place to reach any long term goals for the organisation and make the reasons for achieving these aims clear to key stakeholders in the business. BURKINSHAW have a corporate objective which is a quantifiable statement of a business’s measurable targets, their objective qualifies as a corporate one as Andrew Mitchell’s aim is to expand the business and return it to profitability. Setting up objectives for the business is highly beneficial as it gives an indication to each individual within the organisation an aim to work towards, which, in turn can be an effective method of motivation within the work place.
The transfer from the UK to China has been unsuccessful in relation to HR, as a result of a lower hourly rate for employees in China is exactly half of what it would be in the UK, which could be seen as exploitation of workers as their rights within the workplace are different to those within the UK. In regards to the objectives for the business, this is good, due to a cut in the wages paid, it is more likely for BURKINSHAW to reach profitability. However, this does depend on how many staff are aware of their rights at where they work and also how they pursue this knowledge which could be through a trade union. Furthermore there is a high percentage of capacity utilisation, which is 95%, over working the staff increases the chance of demotivation which effects quality of the product, resulting in defective products, which has been shown to have risen from 5.0% to 7.5%, which effects not only HR but operations also. Not only this, but as BURKINSHAW have a reputation for producing traditional, high quality products, which the business may lose due to the increase of defective products within the Chinese factories. As a result of the business failing within HR, the aims that Andrew has given the business will be more likely to be met, with an