Hard and Soft HRM

• What is hard HRM?

  Treats employees as just another resource of the business
• Hard HRM focuses on efficiency, productivity and profitability.
• Soft HRM focuses on employee well-being and job satisfaction.
• Soft HRM treats people with respect and dignity.
• Hard HRM is based on the assumption that people are motivated by money and will work harder if they receive higher pay or bonuses.
• What is soft HRM?

  Treats employees as the most important resource of the business and a source of competitive advantage
• Which leadeship style best suits hard HRM?

  Autocratic
• Is there lots of or minimal communication in a hard HRM approach?

  Minimal communication, from the top down
• Hard HRM usually uses what type of motivation?

  Financial motivation - Taylor
• In hard HRM there is little empowerment or delegation
• Does hard HRM usually have a tall or flat organisational structure?

  Tall
• Does having a hard HRM approach usually have short-term or long-term changes in employee numbers?

  Short-term (recruitment, redundancy)
• Soft HRM approach concentrates on the needs of the employees
• Which type of leadership style does soft HRM usually suit?

  Democratic
• What type of motivation does soft HRM usually use?

  Non-financial, including empowerment and delegation
• What type of organisational structure does soft HRM better suit?

  Flatter organisational structures
• Soft HRM focuses on job design and job satisfation
• Is there good communication when using soft HRM?

  Yes - strong and regular two way communication
• Why should a business use hard HRM?

  • More cost-effective workforce, particuarly is labour is used efficienctly
  • Quicker decision making
• Why shouldn't a business use hard HRM?

  • Higher absenteeism; higher labour turnover
  • Difficulties with employee retention
  • Potential damage to business reputation
• Which HR data can become worse is a business uses hard HRM?

  • Labour turnover
  • Employee retention
  • Absenteesim
• Which HRM approach could possibly damage a business' reputation?

  Hard HRM approach
• Is there slower or quicker decision making when a business uses hard HRM?

  Quicker
• Why should a business use soft HRM?

  • Higher levels of motivation and productivity
  • Lower absenteeism; lower labour turnover
  • Higher employee retention
  • Better reputation
• What HR data can become better if a business uses soft HRM?

  • Labour turnover
  • Employee retention
  • Absenteeism
• Why shouldn't a business use soft HRM?

  Higher employee costs may leave the business at a competitive disadvanatge