1. What is involved in Human Resource Management?

SOFT AND HARD

HRM
2. 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, traini
ng, assessment, and rewarding of
employees and ensuring compliance with employment and labour laws.
3. 3. Hard HR Management Soft 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 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
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 features Short-term changes in
employee numbers (recruitment, redundancy) Strategic focus on longerterm 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
4. 4. 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.
5. 5. 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)
6. 6. 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 costeffective 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.
7. 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 costeffective 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.
There are a variety of ways to approach the management of HR in a business. The
business textbooks like to describe two broad approaches to HRM which are explained
further below:
"Hard" HR
"Soft" HR
However, it is important to remember that, in reality, these two approaches are
somewhat academic in nature. In real businesses, an HR department or manager would
be likely to adopt elements of both soft and hard HR, and in many cases would not be
interested in the slightest in the distinction!
The key features of the hard and soft approach to HR can be summarised as follows:
Hard HRM
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
Focus of HRM: identify workforce needs of the business and recruit & manage accordingly
(hiring, moving and firing)
Key features
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 judgements (good and bad) about staff
Taller organisational structures
Suits autocratic leadership style
Soft HRM
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: concentrate on the needs of employees their roles, rewards, motivation
etc
Key features
Strategic focus on longer-term workforce planning
Strong and regular two-way communication
Competitive pay structure, with suitable performance-related rewards (e.g. profit share,
share options)
Employees are empowered and encouraged to seek delegation and take responsibility
Appraisal systems focused on identifying and addressing training and other employee
development needs
Flatter organisational structures

Suits democratic leadership style

Which is best? Soft or Hard HRM?
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 that 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.
Whilst the precise HR objectives will vary from business to business and industry to
industry, the following are commonly seen as important HR objectives:
Ensure human resources are employed cost-effectively
Pay rates should be competitive but not excessive
Achieve acceptable staff utilisation
Minimise staff turnover
Measure returns on investment in training
Make effective use of workforce potential
Ensure jobs have suitable, achievable workloads
Avoid too many under-utilised or over-stretched staff
Make best use of employees skills
Match the workforce to the business needs
Workforce planning to ensure business has the right number of staff in the right
locations with the right skills
Effective recruitment to match workforce needs
Training programmes to cover skills gaps or respond to changes in technology,
processes & market
Consider outsourcing activities that can be done better and more cost-effectively
by external suppliers
Get the right number and mix of staff at each location where the business
operates in multiple sites and countries
Maintain good employer / employee relations
Avoid unnecessary and costly industrial disputes
Timely and honest communication with employees and their representatives
Sensitive handling or potential problems with employees (e.g. dismissal,
redundancy, major changes in the business)
Comply with all relevant employment legislation
Influences on HRM Objectives
The main internal and external influences which are likely to affect the human resources
function are summarised below:
Internal influences on HRM objectives
Corporate objectives
E.g. an objective of cost reduction is likely to require HR to implement redundancies, job
reallocations etc.
Operational strategies
E.g. introduction of new IT or other systems and processes may require new staff
training, fewer staff
Marketing strategies
E.g. new product development and entry into a new market may require changes to
organisational structure and recruitment of a new sales team
Financial strategies

E.g. a decision to reduce costs by outsourcing training would result in changes to training
programmes
External influences on HRM objectives
Market changes
E.g. a loss of market share to a competitor may require a change in divisional
management or job losses to improve competitiveness
Economic changes
E.g. the recession of 2009/10 has placed great pressure on HR departments to reduce
staff costs and improve productivity
Technological changes
E.g. the rapid growth of social networking may require changes to the way the business
communicates with employees and customers
Social changes
E.g. the growing number of single-person households is increasing demand from
employees for flexible working options
Political & legal changes
E.g. EU legislation on areas such as maximum working time and other employment rights
impacts directly on workforce planning and remuneration