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