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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
Treats 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

Soft HR Management
Treats employees as the most important resource
in the business and a source of competitive
advantage
Employees are treated as individuals and their
needs are planned accordingly

Focus of HRM: identify workforce needs of the Focus of HRM: concentrate on the needs of
business and recruit & manage accordingly
employees – their roles, rewards, motivation etc
(hiring, moving and firing)
Key features
Short-term changes in employee numbers
(recruitment, redundancy)
Minimal communication, from the top down

Key features
Strategic focus on longer-term workforce
planning
Strong and regular two-way communication

Pay – enough to recruit and retain enough staff Competitive pay structure, with suitable
(e.g. minimum wage)
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
Possible
2.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
development
4.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.
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)

Hard vs Soft? The Debate
•

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.

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Hard vs soft HRM

  • 1. What is involved in Human Resource Management? SOFT AND HARD HRM
  • 2. 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).
  • 3.
  • 4. Hard HR Management Treats 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 Soft HR Management Treats employees as the most important resource in the business and a source of competitive advantage Employees are treated as individuals and their needs are planned accordingly Focus of HRM: identify workforce needs of the Focus of HRM: concentrate on the needs of business and recruit & manage accordingly employees – their roles, rewards, motivation etc (hiring, moving and firing) Key features Short-term changes in employee numbers (recruitment, redundancy) Minimal communication, from the top down Key features Strategic focus on longer-term workforce planning Strong and regular two-way communication Pay – enough to recruit and retain enough staff Competitive pay structure, with suitable (e.g. minimum wage) 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
  • 5. 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 Possible 2.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 development 4.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.
  • 6. 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) Hard vs Soft? The Debate
  • 7. • 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.