Understanding Human Resource Management In Business

In this article I will be explaining the two main types of HR types, soft HR and hard HR. This is helpful for Business Studies A- Level students for their BUSS3 exams and business people alike. This article will also cover the advantages and disadvantages of soft HR and soft HR.

Soft HRM
Soft HR is where a company looks at their employees as the most valuable resource. They are seen as individuals and their needs are catered for.

Advantages of Soft HRM

• It can help a business build a reputation for being a ‘good’ employer. Good employees seek to offer their employees diverse and interesting jobs and the opportunity to develop their skills. The pay and conditions on offer are attractive and the employer ensures that employees receive regular training to hone their skills and enhance promotion prospects.
• A soft HR management strategy can improve knowledge management within a business.
• A soft HR strategy may also develop a more creative workforce.

Disadvantages of Soft HRM

• The expense for the firm can be very high as they need to pay out for training etc to build motivation and allow the employees to have the flexibility they require.
• Decision making can become far harder as everyone needs to be consulted, this can result in loss of business opportunities which could lead to possible profit for the company.

Hard HRM
Hard HR is where a company treats their employees purely as a resource in order to obtain efficiency and profit, the wants and needs of the employees are not taken into consideration as much as in soft HR.

Advantages of Hard HRM

• It makes it easier for a company to adapt the size and composition of their workforce to match the needs of their customers.
• It can result in lower costs, especially in the short-term. Uses employees with lower skill levels.
• Allows managers to retain control over the workforce and to direct operations as they wish.

Disadvantages of Hard HRM

• Level of labour turnover might be very high.
• Employees may be demotivated by this ‘hard’ approach to employment.

Example Of Companies With Soft HRM

• Google
• Facebook

Examples Of Companies With Hard HRM

• Ryanair
• McDonalds
• KFC

Thank you for reading this article, I hope it has helped you in one way or another.

This article has been written by Joe Black of Review Cosmos.