Soft & Hard HRM

• Soft HRM

  • Employees viewed as a strategic asset
  • Employees should be developed over time
  • Associated with democratic leadership, delegation, and decentralized structures
  • Leads to better motivation, morale, and higher productivity
• Soft HRM

  Employees are the most important asset a business has
• Effects of Soft HRM

  • Better motivation
  • Better morale
  • Higher productivity
• Training costs are involved in developing employees over time in Soft HRM
• Expensive training costs in Soft HRM could lead to a competitive disadvantage
• Soft HRM depends on the nature of the market
• Issues with delegation and decentralization in Soft HRM
• Hard HRM

  • Employees treated as tactical resources
  • Focus on efficiency and reducing unit costs
  • Associated with authoritarian and autocratic structures, including centralized structures
• Hard HRM

  Employees are treated as raw materials or components
• Hard HRM is usually associated with authoritarian and autocratic structures
• Issues with absenteeism in Hard HRM
• Turnover issues can arise in Hard HRM
• Hard HRM may lead to higher turnover and absenteeism
• Availability of a pool of workers to replace staff leaving in Hard HRM

  Determines if it makes sense to use Hard HRM
• Consideration of the business itself is important in deciding between Soft and Hard HRM