Soft/hard Hrm

Definition of HRM

'A philosophy of people management based on the belief that human resources are uniquely important in sustained business success. An organization gains competitive advantage by using its people effectively, drawing on their expertise and ingenuity to meet clearly defined objectives. HRM is aimed at recruiting capable, flexible and committed people, managing and rewarding their performance and developing key competencies.'

Lack of a universally agreed definition of HRM lies in the absence of a �coherent theoretical basis for classifying HRM policies and practice’- Guest 1997 identifies 3 categories of general-level theory:

1. Strategic theories-origin: contingency theory

2. Descriptive theories-origin: systems theory

3. Normative theories: origin: motivation theory

Models of HRM

Hard HRM (also referred to as strategic management)

• Emphasis is on strategy- HR employed to achieve and meet business goals.

• Emphasizes the necessity of �tight-fit’ between HR strategy and business strategy & goals of the organization.

• Focuses on the resource side of human resources. It emphasizes costs in the form of 'headcounts' and places control firmly in the hands of management. Their role is to manage numbers effectively, keeping the workforce closely matched with requirements in terms of both bodies and behavior.

Matching model- �best-fit’ (follows a contingency approach)

• 2 assumptions underpin this model:

1. Most effective means of managing ppl will vary from org to org and is dependant on org context.

2. Differing views cannot exist as everyone should be working toward achieving the same goal-success of the business.

• Matching Model-Michigan Business School (Fombrun, Tichy and Devanna, 1984). There are many similarities with the Harvard 'map' but the Michigan model has a harder, less humanistic edge, holding that employees are resources in the same way as any other business resource. People have to be managed in a similar manner to equipment and raw materials. That must be obtained as cheaply as possible, used sparingly, and developed and exploited as much as possible.

• Also known as the 'best-fit' approach. In essence, it requires that human resource strategies have a tight fit to the overall strategies of the business. As such, it limits the role of HR to a reactive, organizational function and under-emphasizes the importance of societal and other external factors. For example, it is difficult to see how the current concern for worklife balance could be integrated into this model.

• Price (2004) outlines key areas for the development of appropriate HR policies &systems:

o Selecting the most suitable people to meet business needs

o Performance must be directed to meeting business objectives

o Appraisal, monitoring and providing feedback systems should be in place

o Reward for good performance that meets objectives

o Development of skills & knowledge- training

• The matching model has attracted criticism. At a conceptual level, it is seen to depend on a rational, mechanical form of organizational decision-making. In reality, strategies are often determined and operationalized on a more intuitive, political and subjective level. Certainly, the decision-making is more complex than the model allows. It is also both prescriptive and normative, implying that the fit to business strategy should determine HR strategy.

Soft HRM approach (also referred to as high-commitment management)

• Aimed at enhancing the commitment, quality and flexibility of employees

• Stresses the 'human' aspects of HRM. Its concerns are with communication and motivation. People are led rather than managed. They are involved in determining and realizing strategic objectives.

• The work of Maslow, in 
stating that humans have a 'hierarchy of needs', which they will exert 
considerable energy towards achieving, claims that organizations that 
recognize and address these needs will have a happier, more fulfilled, 
more