Hard and Soft Human Resource Management

Introduction

• Channel focused on A-level business students.
• Topic: Differences between hard and soft HR management.
• Also known as viewing staff as a cost vs. viewing staff as an asset.

Hard Human Resource Management (HRM)

• Viewpoint: Staff as a cost.
• Approach:
  • Workforce seen as a resource to minimize costs.
  • Central to business models focused on cost minimization.

Techniques Associated with Hard HRM

• Minimizing Pay:
  • Pay the minimal legally allowed wages or lower salaries.
• Reduced Training Investment:
  • Less focus on training existing staff.
  • Prefer external recruitment for new skills.
• Legal Minimum Practices:
  • Stick to minimum legal obligations regarding welfare (e.g., health & safety, holiday pay).
• Temporary Contracts:
  • Use temporary contracts to maintain flexibility and responsiveness.

Benefits of Hard HRM

• Lowers overall costs.
• Can support price competitiveness and help establish market share.

Soft Human Resource Management (HRM)

• Viewpoint: Staff as an asset.
• Approach:
  • Workforce seen as requiring nurturing, developing, and retaining.
  • Focus on retaining employees within the organization.

Techniques Associated with Soft HRM

• Competitive Remuneration:
  • Offer better wages and salary packages.
  • More generous fringe benefits (e.g., paid time off, insurance).
• Investing in Training:
  • Emphasis on training and promoting from within.
• Long-Term Contracts:
  • Offer permanent contracts to boost job security and motivation.

Benefits of Soft HRM

• Enhances staff motivation, productivity, and innovation.
• Promotes a sense of belonging and investment in company goals.

Choosing Between Hard and Soft HRM

• Depends on business objectives:
  • Cost Minimization: Hard HRM may be preferred.
  • Quality and Innovation: Soft HRM may be more beneficial.
• Industry Considerations:
  • Face-to-face consumer interactions may benefit from Soft HRM.
  • Price competitive industries may lean towards Hard HRM.

Critique of Hard HRM

• Short-term cost savings may lead to higher long-term costs due to:
  • Increased absenteeism and labor turnover.
  • Potentially lower productivity rates.

Conclusion

• Hard vs. Soft HRM choice should align with business strategies and market conditions.
• Consider long-term implications of workforce management strategies.