3. HRM & SHRM
HRM
Human resource management
is the practice of recruiting,
hiring, deploying and managing an
organization's employees.
Considers Employees As Human
Resource
SHRM
Strategic Human Resource
Management is defined as
alignment of strategic business goals
of the organization with human
resources, so as to foster innovation
and improve motivation, satisfaction,
productivity, and eventually overall
performance.
Considers Employees As Strategic
Human Resource
INDEX GROUP
6. Storey in 1989 who elaborated on the Michigan and
Harvard models on management (1960). Harvard and
Michigan propounded theory X and Theory Y to explain
two different styles of HRM.
Theory X Michigan/Hard HRM
Model
Theory Y Harvard/Soft HRM
Model
Theory x has similarity with Hard Model of HRM &
Theory Y with Soft HRM
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7. SOFT HRM
SOFT HRM = People-Focused / High-Commitment
Treats employees as the most important resource in the business and a
source of competitive advantage.
Focal Points
Needs of employees
Employee Training
Development
Commitment
Participation
Motivation
Workforce flexibility
Quality
Strategic integration
Modern approach to strategic human resource management.
AKA Humanistic HRM or Harvard Model
INDEX GROUP
8. Stakeholder
Interests
i)Stakeholders
ii) Employees
iii) Managament
iv) Government
v) Communities
vi) Unions
HR Strategy
i) Employee
influence
ii) Human Resources
flows
iii) Reward system
iv) Work systems
HR Outcomes
i) Commitment
ii) Congruence
iii) Competence
iv) Costs
Long-term consequences
i) Organizational effectiveness
ii) Individual well-being
iii) Societal well-being
Situational Interests
i) Workforce type
ii) Business strategy
iii) Management philosophy
iv) Labour market
v) Task technology
vi) Societal values
INDEX GROUP
SOFT HRM
9. HARD HRM
HARD HRM = Task-Focused / Low-Commitment
Treats employees simply as a resource of the business (like
machinery & buildings)
Focal Points
Performance Management
Strategy in Achieving Organizational Goals
Cost Control
Hiring, Moving and Firing
The concept of “Hard HRM" is the basis for the traditional
approach toward human resource management.
INDEX GROUP
12. SOFT MODEL
Longer-term workforce planning
Strong and regular two-way communication
Performance-related rewards (e.g. profit share, share
options)
Delegation of authority
Appraisal systems focused on identifying and addressing
training and
other employee development needs
Flatter organizational structures
Suits democratic leadership style
INDEX GROUP
13. HARD MODEL
Short-term changes in employee numbers (recruitment,
redundancy)
Minimal communication, from the top down
Pay – enough to recruit and retain enough staff
(e.g. minimum wage)
Little empowerment or delegation
Appraisal systems focused on making judgments (good
and bad) about staff
Taller organizational structures
Suits autocratic leadership style
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15. HARD HRM
Theory X Links to theory Y
Employees are like
machine
Employees treated as
individual
Focus on short
term
Long term strategy
SOFT HRM
Autocratic
Leadership
Democratic
leadership
Tall organization Flat organization
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16. 1.Useful in crisis
2.Useful when
management have
expertise
3.Quicker decision
making
Leads to
1.Poor employee
relation
2. Impact in
motivation
HARD HRM
INDEX GROUP
17. SOFT HRM
Leads to
1.Best use of skill
2.Useful when
employees are
experienced
3.Creativity and
innovation
1.Decision making
needs more time
2.Costly approach
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26. Description Soft Model
HRM
Hard Model
HRM
Cost Effective
Workforce
Quick Decision Making Decision Maybe Wrong!
Attention To The Needs
Of Employees
Higher Absenteeism
Staff Turnover
Employee Satisfaction
Employee Motivation
Competitive Advantage Too Much is competitive
disadvantageous
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27. So We Can Say
Situation Of The Organization &
Behavior Of The Employees
Convey Steward Which Is Best
Fitted To Follow !!!!!!!!!
INDEX GROUP