Soft and Hard Approaches to Human Resource Management *HRM

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What is HRM?

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1

What is HRM?

“The design, implementation and maintenance of strategies to manage people for optimum business performance”

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2

What are hard approaches to HRM?

  • Treats employees simply as just another resource of the business

  • What resources do we need?

  • How do we get them and how much will they cost?

  • How do we use them most productively?

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3

What are soft approaches to HRM?

  • Treats employees as the most important resource of the business and a source of competitive advantage

  • How do we get the best out of our employees?

  • How can they help give the business an edge?

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4

What are the features of a hard approach to HRM?

  • Focus: Identify workforce needs of the business and recruit and manage accordingly (hiring, moving and firing)

  • Key features:

    • Short-term changes in employee numbers (recruitment, redundancy)

    • Minimal communication, from top down

    • Motivation- focus on financial methods (Link to Taylor’s scientific approach)

    • Little empowerment or delegation

    • Taller organisational structures

    • Suits autocratic leadership style

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5

What are the features of a soft approach to HRM?

  • Focus: Concentrate on the needs of employees- their needs of employees- their roles, rewards, motivation etc

  • Key features:

    • Strong and regular two-way communication

    • Competitive pay with performance-related rewards

    • Motivation- greater use of non-financial methods, including empowerment, delegation

    • Focus on job design and job satisfaction

    • Flatter organisational structures

    • Suits democratic leadership style

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6

Why is a soft approach better than a hard approach?

  • More cost-effective workforce (possibly), particularly if labour is used efficiently

  • Quicker decision-making by senior managers

  • Higher absenteeism; higher labour turnover; difficulties with employee retention

  • Potential damage to business reputation

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7

Why is a hard approach better than a soft approach?

  • Higher employee costs may leave the business at a competitive disadvantage

  • Higher levels of motivation and productivity

  • Lower absenteeism; lower labour turnover and higher employee retention

  • Benefit to the business of reputation as a great place of work

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