WELCOME

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
 SOFT HRM

Stakeholder
Interests
i)Stakeholders
ii) Employees
iii) Managament
iv) Government
v) Communities HR Strategy
vi) Unions i) Employee HR Outcomes Long-term consequences
i) Commitment i) Organizational effectiveness
influence
ii) Human Resources ii) Congruence ii) Individual well-being
iii) Competence iii) Societal well-being
flows
iii) Reward system iv) Costs
iv) Work systems

Situational Interests
i) Workforce type
ii) Business strategy
iii) Management philosophy
iv) Labour market
v) Task technology
vi) Societal values

INDEX GROUP
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
 Cultural
HARD HRM Forces

Economical Political
Forces Forces

Missions &
Strategy

Organization HR
structure Management

INDEX GROUP
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 SOFT HRM

Theory X Links to theory Y

Employees are like Employees treated as

machine individual
Focus on short
Long term strategy
term
Autocratic Democratic
Leadership leadership
Tall organization Flat organization
INDEX GROUP
 HARD HRM

1.Useful in crisis
2.Useful when 1.Poor employee
management have Leads to relation
expertise 2. Impact in
3.Quicker decision motivation
making

INDEX GROUP
 SOFT HRM

1.Best use of skill

2.Useful when 1.Decision making
employees are Leads to needs more time
experienced 2.Costly approach
3.Creativity and
innovation

INDEX GROUP
Techniques Used

INDEX GROUP
 Techniques Used

SOFT HRM HARD HRM

1. Limited
1. Delegation Delegation &
2. Empowerment team working
2. Less pay

INDEX GROUP
Practitioners in
this context

INDEX GROUP
 Practitioners in this
context

Practitioner of
Known for Soft HRM

Practitioner
of Known for
Hard HRM
INDEX GROUP
Global Hard and soft HRM
model user company

INDEX GROUP
 Soft Hard
Model Model
Organization Employee Employee Training Employee Employee Close
as human involvement & as cost as factor of integration of
developme production HRM with
nt 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 1.KFC
2.AJI Group 2.Uniliver

INDEX GROUP
 Which is best?
Soft or Hard
HRM?
The answer is – it depends!

INDEX GROUP
Description Soft Model Hard Model
HRM 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