What is involved in Human Resource Management?

SOFT AND HARD HRM

Human resource management (HRM, or simply HR) is the management of an organization's workforce,

or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of

employees, while also overseeing organizational leadership and culture and ensuring

compliance with employment and labor laws.

• In circumstances where employees desire and are legally authorized to hold a collective bargaining agreement, HR will also serve as the company's primary liaison with the employees' representatives (usually a labor union).

Hard HR Management Soft HR ManagementTreats employees simply as a resource of the business (like machinery & buildings)Strong link with corporate business planning – what resources do we need, how do we get them and how much will they cost

Treats employees as the most important resource in the business and a source of competitive advantageEmployees are treated as individuals and their needs are planned accordingly

Focus of HRM: identify workforce needs of the business and recruit & manage accordingly (hiring, moving and firing)

Focus of HRM: concentrate on the needs of employees – their roles, rewards, motivation etc

Key features Key featuresShort-term changes in employee numbers (recruitment, redundancy)

Strategic focus on longer-term workforce planning

Minimal communication, from the top down Strong and regular two-way communication

Pay – enough to recruit and retain enough staff (e.g. minimum wage)

Competitive pay structure, with suitable performance-related rewards (e.g. profit share, share options)

Little empowerment or delegation Employees are empowered and encouraged to seek delegation and take responsibility

Appraisal systems focused on making judgements (good and bad) about staff

Appraisal systems focused on identifying and addressing  training and other employee development needs

Taller organisational structures Flatter organisational structures

Suits autocratic leadership style Suits democratic leadership style

HARD Human Resource Management

SOFT Human Resource Management

Time Scale HRM seen as a short-term policy: employees are hired and fired as necessary

Takes a long term view of using the workforce are efficiently as possible to achieve long term corporate objectives.

Key Features 1.Employees are Paid As Little as Possible2.Employees have limited control over their working life.3.Communication mainly downward in direction.4.Judgmental Appraisals used

1.Managers consult regularly and fully with employees.2.Managers often give control of their working life to employees through delegation, empowerment and delaying.3.Emphasis on training and development4.Employees promoted from within wherever possible – reflecting the long-term aim to develop the workforce.5.Developmental appraisals given.

Motivational Techniques used:

Mainly motivated by Pay, with limited use of delegation and team working.

Delegation, empowerment. Extensive use of techniques designed to give employees more power.

Hard vs Soft? The Debate

Which approach do you think works best and why? (use knowledge of motivation)

Does the approach used depend on anything?

Which approach allows the business to achieve HRM objectives. (think back to last lesson)

• Which of the two approaches is better?  The answer is – it depends!

• The “hard” approach to HR might be expected to result in a more cost-effective workforce where decision-making is quicker and focused on senior managers. However, such an approach pays relatively little attention to the needs of employees and a business adopting a genuinely “hard” approach might expect to suffer from higher absenteeism and staff turnover and less successful recruitment.

• The “soft” approach will certainly appeal to the “touchy-feely” amongst us who like to see people being treated nicely! 

• And you can also make a good business case for an approach which rewards employee performance and motivates staff more effectively. However, the danger of taking too “soft” an approach is that when all the employee benefits are added up, the cost of the workforce leaves a business at a competitive disadvantage.