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INDEX GROUP
SOFT & HARD
Model Of HRM
INDEX GROUP
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
MODELS OF HRM
INDEX GROUP
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
INDEX GROUP
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
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
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
Missions &
Strategy
Organization
structure
HR
Management
Economical
Forces
Political
Forces
INDEX GROUP
Cultural
ForcesHARD HRM
KEY FEATURES OF SOFT &
HARD MODEL OF HRM
INDEX GROUP
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
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
INDEX GROUP
SOFT HRM vs. HARD HRM
INDEX GROUP
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
INDEX GROUP
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
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
INDEX GROUP
Techniques Used
INDEX GROUP
Techniques Used
SOFT HRM HARD HRM
1. Delegation
2. Empowerment
1. Limited
Delegation &
team working
2. Less pay
INDEX GROUP
Practitioners in
this context
INDEX GROUP
Practitioners in this
context
Known for
Known for
Practitioner
of
Hard HRM
Practitioner of
Soft HRM
INDEX GROUP
Global Hard and soft HRM
model user company
INDEX GROUP
Soft
Model
Hard
Model
Organization Employee
as human
Employee
involvement
Training
&
developme
nt
Employee
as cost
Employee
as factor of
production
Close
integration of
HRM with
business
strategy
CADBURY YES YES YES YES NO NO
BHP YES YES YES YES NO NO
Westfield YES NO NO YES NO NO
Ticor NO NO NO NO NO NO
Bangladesh perspective
SOFT HRM HARD HRM
1.Unitex
2.AJI Group
1.KFC
2.Uniliver
INDEX GROUP
Which is best?
Soft or Hard
HRM?
The answer is – it depends!
INDEX GROUP
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
INDEX GROUP
So We Can Say
Situation Of The Organization &
Behavior Of The Employees
Convey Steward Which Is Best
Fitted To Follow !!!!!!!!!
INDEX GROUP
THANK YOU !
INDEX GROUP

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Soft & Hard Model of HRM

  • 2. SOFT & HARD Model Of HRM INDEX GROUP
  • 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 INDEX GROUP
  • 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
  • 11. KEY FEATURES OF SOFT & HARD MODEL OF HRM 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 INDEX GROUP
  • 14. SOFT HRM vs. HARD HRM INDEX GROUP
  • 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 INDEX GROUP
  • 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 INDEX GROUP
  • 19. Techniques Used SOFT HRM HARD HRM 1. Delegation 2. Empowerment 1. Limited Delegation & team working 2. Less pay INDEX GROUP
  • 21. Practitioners in this context Known for Known for Practitioner of Hard HRM Practitioner of Soft HRM INDEX GROUP
  • 22. Global Hard and soft HRM model user company INDEX GROUP
  • 23. Soft Model Hard Model Organization Employee as human Employee involvement Training & developme nt Employee as cost Employee as factor of production Close integration of HRM with business strategy CADBURY YES YES YES YES NO NO BHP YES YES YES YES NO NO Westfield YES NO NO YES NO NO Ticor NO NO NO NO NO NO
  • 24. Bangladesh perspective SOFT HRM HARD HRM 1.Unitex 2.AJI Group 1.KFC 2.Uniliver INDEX GROUP
  • 25. Which is best? Soft or Hard HRM? The answer is – it depends! INDEX GROUP
  • 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 INDEX GROUP
  • 27. So We Can Say Situation Of The Organization & Behavior Of The Employees Convey Steward Which Is Best Fitted To Follow !!!!!!!!! INDEX GROUP