Define HRM and describe soft versus hard HRM?

Within the HRM view, two approaches have been identified. Storey (1989) labelled these two approaches hard HRM and soft HRM. The ‘hard’ approach, rooted in manpower planning is concerned with aligning human resource strategy with business strategy, while the ‘soft’ approach is rooted in the human relations school, has concern for workers’ outcomes and encourages commitment to the organization by focusing on workers’ concerns. Simply, hard HRM Views people as a resource used as ameans of achieving organizationalgoals while soft HRM Encourages employers to developstrategies to gain employeecommitment.

The following table summarizes the key differences between hard and soft HRM:

The key features of the hard and soft approach to HR can be summarised as follows:

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

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 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.

In fact in my opinion most of the answers submitted by the experts have been very educative esp those of Ghada Mr. Sameer.

Thanks for the invite Ghada

"The soft model emphasizes individuals and their self-direction and places commitment, trust, and self-regulated behaviour at the centre of any strategic approach to people. In contrast, the hard model stresses the rationalism of strategic fit and places emphasis on performance management and an instrumental approach to the management of individuals" (Truss C, Strategic Humand Resource Management) i find this textbook definition of the two concepts to be simplistic and practical, therefore applicable in the workplace.  I believe that both need to be applied simultaneoulsy, adaptive to the individuals and situations the practioner would find themselves in, creating a strategy that  generates maximum productivity out of those it is created for. After all, is this not the purpose of 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

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

Thanks

I support the answer given by Mr. ACHMAD

You already have the perfect answer to this question which left me with nothing to add. 

I agree with the experts submissions here.

Thanx for the invitation

Excellent response from Mr. ACHMAD SURJANI ACHMAD SURJANI

New information added interest me

thanks for the invitation

I have always held the view that HRM is an execution of the organization's strategic objectives. It must be aligned with those to bring about desired results. It is a function that spans the value chain of any organization and that makes it strategic. 

Certainly, there are different approaches, and in today's environment of technology driven, knowledge based organizations, the approach to managing people as a resource demands "soft" approaches. However, there is still the management of performance that must be addressed continuously, and to that extent, organization's do demand value to be added. 

I subscribe fully to strategic Human Resource Management and have consistently referenced Strategic Human Resource Management, Mello D. Jeffery, 2002.

Jeff Mello is a Professor of Management at Towson University.

thanx for invitation not much to say after what the guys said but i want to add simple the real industerial revolution has begun with soft HRM