An Analysis of Soft and Hard HRM Approaches in Modern Organizations

This report examines the contrasting approaches to human resource management (HRM): soft and hard HRM. Soft HRM prioritizes employee well-being, satisfaction, and development, aiming to foster a positive work environment and enhance employee performance through strategies like training, competitive pay, and performance-related rewards. Conversely, hard HRM views employees as resources to be managed efficiently, focusing on cost-effectiveness and strategic alignment with business objectives. The report highlights the differences between these approaches, discussing the benefits and drawbacks of each, including their impact on employee turnover, absenteeism, and organizational branding. It concludes that the most effective HRM strategies often blend elements of both approaches to optimize workforce management and achieve organizational goals, emphasizing the importance of balancing employee needs with business requirements.

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Introduction
Human resources are vital resources of a business organization and important in achieving the
business deliverables. The human resource department of the organization is focused to
maximize the employee performance and according to the strategic objectives of the
organization. The primary functions of HR department of the organization are employee
recruitment, training, performance appraisal and the industrial relations. The human resource
management is focused on managing the workforce. Various facilities are provided to the
employees to increase their satisfaction with the workplace. The human resource department also
assures that the organization comply with the government regulations and the industrial
standards. The HR department devise various strategies related to increase the employee

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satisfaction with the workplace such as performance management, training and development and
attractive remuneration.
Soft HRM
The HR practices can be distinguished as soft HRM or hard HRM. The soft HRM refers to the
HR practices in which the employees are considered as human being and they are provided
various benefits which ease their working in the organization. In soft HR practices, the
companies treat the employees as a source of competitive advantage and focus on their welfare.
It focuses on different needs of the employees, their roles, rewards and motivation towards work.
The employer focuses on the long-term workforce planning and regular communication with the

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employees to enhance the performance of the organization. The organization should also
establish a competitive pay structure and design performance-related rewards for the employees.
Hard HRM
The hard HRM is the approach of treating the employees as resources. The managers
consider the employees as a resource just like machines or infrastructure. Hard HRM is the
approach in which the resource are closely linked with the business planning of the organization.
The management considers what kind of resources the company needs, how to access them and
how much these resources are going to cost. The focus of hard HRM is to identify the needs of
business and recruit and manage workforce accordingly.
Soft HRM vs Hard HRM

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The soft HRM as well as hard HRM are two different approaches to handle the HR
operations in an organization. No organization employ individually soft HRM or hard HRM
approach; however, the HRM operations are a combination of both the approaches. The hard
HRM results in cost-effective workforce in which quick decisions are required. This HR
approach is focused on the senior managers of the organization. However, this approach pays
relatively less focus on the needs of the employees. When this approach is applied, the
organization suffer from high absenteeism and staff turnover in the organization. The recruitment
within the organization is also comparatively less successful than the soft approaches. The soft
approach appeals to the managers with more humane side. The company can improve its brand
image as a business organization which focuses on the needs of the organization. Acknowledging
the performance of the employees and motivating them to perform better increases the overall

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efficiency of the organization. However, when all the employee benefits are added up, it
increases the overall cost to the organization.
Conclusion
It can be concluded that the human resource are the best resource of the organization. The
business organizations utilize different strategies to handle the workforce of the organization.
The human resource approaches can be categorized into soft HR approaches and hard HR
approaches. The soft approach emphasizes on the needs and requirements of the employees.
However, it increases the overall cost to the organization. In hard HRM, workforce is considered
as a resource and no special consideration is given to their needs.

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References