Hard & Soft HRM

models
R A I N I C K B R E N H I Z A R T. N AVA R R 0 , M D

MMHOA - PCU
 Model/Approaches in
HRM

HARD SOFT
1989 – STOREY elaborated on the Michigan and Harvard models on Management (1960). Harvard
and Michigan propounded Theory X and Theory Y to explain 2 diffenent styles of HRM

THEORY X THEORY Y
MODEL MODEL
THEORY X THEORY Y
MODEL MODEL

HARD HRM SOFT HRM

MODEL MODEL
 • TASK CENTERED / LOW-
COMMITMENT
- Instrumental approach (employee as resource only)

• FOCUS ON:
- Performance management
- Strategy in achieving organizational goals
HARD HRM - Cost control
MODEL - Hiring, Moving, Firing
 • PEOPLE CENTERED/HIGH
COMMITMENT
- People as most important (assets)

• FOCUS ON:
- Needs of employees
- Employee trainig
- Development
- Commitment
SOFT HRM - Participation
MODEL - Motivation
- Workforce flexibility
- Quality
- Strategic integration
 HARD HRM SOFT HRM
Autocratic leadership Democratic leadership
Short term policies Long term workforce planning and development
Taller organization structures Flatter organizations
 HARD HRM SOFT HRM
Minimal communication Employees are briefed on development plans
Top-down Open communication with supervisors (2 way)
Little empowerement or delegation Regular feedback on performance
Delegation of authority
Judgmental appraisal Appraisal systems focus on identifying and Training
Evaluated as individuals development needs
Evaluation used for reward and remedial
Pay – just enough to recruit and retain enough Pay and Performance related rewards
staff Employees are promoted from within whenever possible
Which is better?
 ADVANTAGES DISADVANTAGES
Useful when management has great Poor employee relation
expertise
Quicker Decision making High absentism / staff turnover
Cost effective Less successful recruitment
Staff is monitored Employees are controlled
 ADVANTAGES
Useful when employees are experienced
Employee loyalty
Great utilization of skills
Collaborative Employee-Employer
relationship
DISADVANTAGES
Decision making needs more time
Costly approach
- high cost of employee development
- high cost of employee training
- high cost of employee salaries
which to choose?
Depends! Business goals, the
corporate culture, the
nature of the business
environment,
the nature of the business
strategies.
Conclusion
 Unrealistic to adopt a purely HARD or a Purely SOFT HRM
approach

 Blend of both will maximize each model’s benefits and

advantages to achieve the company’s strategic objectives.