Soft & Hard Model of HRM
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Soft & Hard Model of HRM
- 2. SOFT & HARD Model Of HRM INDEX GROUP
- 3. HRM & SHRM HRM Human resource management is the practice of recruiting, hiring, deploying and managing an organization's employees. Considers Employees As Human Resource SHRM Strategic Human Resource Management is defined as alignment of strategic business goals of the organization with human resources, so as to foster innovation and improve motivation, satisfaction, productivity, and eventually overall performance. Considers Employees As Strategic Human Resource INDEX GROUP
- 5. INDEX GROUP
- 6. Storey in 1989 who elaborated on the Michigan and Harvard models on management (1960). Harvard and Michigan propounded theory X and Theory Y to explain two different styles of HRM. Theory X Michigan/Hard HRM Model Theory Y Harvard/Soft HRM Model Theory x has similarity with Hard Model of HRM & Theory Y with Soft HRM INDEX GROUP
- 7. SOFT HRM SOFT HRM = People-Focused / High-Commitment Treats employees as the most important resource in the business and a source of competitive advantage. Focal Points Needs of employees Employee Training Development Commitment Participation Motivation Workforce flexibility Quality Strategic integration Modern approach to strategic human resource management. AKA Humanistic HRM or Harvard Model INDEX GROUP
- 8. Stakeholder Interests i)Stakeholders ii) Employees iii) Managament iv) Government v) Communities vi) Unions HR Strategy i) Employee influence ii) Human Resources flows iii) Reward system iv) Work systems HR Outcomes i) Commitment ii) Congruence iii) Competence iv) Costs Long-term consequences i) Organizational effectiveness ii) Individual well-being iii) Societal well-being Situational Interests i) Workforce type ii) Business strategy iii) Management philosophy iv) Labour market v) Task technology vi) Societal values INDEX GROUP SOFT HRM
- 9. HARD HRM HARD HRM = Task-Focused / Low-Commitment Treats employees simply as a resource of the business (like machinery & buildings) Focal Points Performance Management Strategy in Achieving Organizational Goals Cost Control Hiring, Moving and Firing The concept of “Hard HRM" is the basis for the traditional approach toward human resource management. INDEX GROUP
- 11. KEY FEATURES OF SOFT & HARD MODEL OF HRM INDEX GROUP
- 12. SOFT MODEL Longer-term workforce planning Strong and regular two-way communication Performance-related rewards (e.g. profit share, share options) Delegation of authority Appraisal systems focused on identifying and addressing training and other employee development needs Flatter organizational structures Suits democratic leadership style INDEX GROUP
- 13. HARD MODEL Short-term changes in employee numbers (recruitment, redundancy) Minimal communication, from the top down Pay – enough to recruit and retain enough staff (e.g. minimum wage) Little empowerment or delegation Appraisal systems focused on making judgments (good and bad) about staff Taller organizational structures Suits autocratic leadership style INDEX GROUP
- 14. SOFT HRM vs. HARD HRM INDEX GROUP
- 15. HARD HRM Theory X Links to theory Y Employees are like machine Employees treated as individual Focus on short term Long term strategy SOFT HRM Autocratic Leadership Democratic leadership Tall organization Flat organization INDEX GROUP
- 16. 1.Useful in crisis 2.Useful when management have expertise 3.Quicker decision making Leads to 1.Poor employee relation 2. Impact in motivation HARD HRM INDEX GROUP
- 17. SOFT HRM Leads to 1.Best use of skill 2.Useful when employees are experienced 3.Creativity and innovation 1.Decision making needs more time 2.Costly approach INDEX GROUP
- 19. Techniques Used SOFT HRM HARD HRM 1. Delegation 2. Empowerment 1. Limited Delegation & team working 2. Less pay INDEX GROUP
- 20. Practitioners in this context INDEX GROUP
- 21. Practitioners in this context Known for Known for Practitioner of Hard HRM Practitioner of Soft HRM INDEX GROUP
- 22. Global Hard and soft HRM model user company INDEX GROUP
- 23. Soft Model Hard Model Organization Employee as human Employee involvement Training & developme nt Employee as cost Employee as factor of production Close integration of HRM with business strategy CADBURY YES YES YES YES NO NO BHP YES YES YES YES NO NO Westfield YES NO NO YES NO NO Ticor NO NO NO NO NO NO
- 24. Bangladesh perspective SOFT HRM HARD HRM 1.Unitex 2.AJI Group 1.KFC 2.Uniliver INDEX GROUP
- 25. Which is best? Soft or Hard HRM? The answer is – it depends! INDEX GROUP
- 26. Description Soft Model HRM Hard Model HRM Cost Effective Workforce Quick Decision Making Decision Maybe Wrong! Attention To The Needs Of Employees Higher Absenteeism Staff Turnover Employee Satisfaction Employee Motivation Competitive Advantage Too Much is competitive disadvantageous INDEX GROUP
- 27. So We Can Say Situation Of The Organization & Behavior Of The Employees Convey Steward Which Is Best Fitted To Follow !!!!!!!!! INDEX GROUP
- 28. THANK YOU ! INDEX GROUP