Soft and Hard Approaches to Human Resource Management *HRM

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