Approaches to HRM

Understanding Approaches to HRM

  • Human Resource Management (HRM) is a strategic approach to the effective and efficient management of people in a company so that they help their business gain a competitive advantage.
  • It includes the process of hiring, training, managing and retaining employees in the organisation.
  • The effectiveness of HRM strategies can significantly impact the productivity, culture and overall success of a business.

Hard and Soft HRM

  • Hard HRM is a strategy that focuses on the organisation’s needs.
  • Hard HRM treats employees as a resource to be managed, similar to any other business resources.
  • It focuses on cost management, tight control over employees, and task accomplishment.

  • Some critics argue that hard HRM strategies can lead to lower morale and high staff turnover.

  • Conversely, soft HRM takes a more human-centred approach and recognises the importance of employee satisfaction and welfare.
  • Soft HRM focuses on communication, motivation, leadership, and employee involvement.
  • Adherents of the soft HRM approach argue that satisfied, motivated employees are more productive and loyal, ultimately benefiting the organisation.

Strategic HRM

  • Strategic HRM involves aligning all HR functions and activities with the organisation’s strategic objectives.
  • This approach recognises the importance of balancing the requirements of the organisation with the needs of employees.
  • Strategic HRM involves several key activities, including workforce planning, talent management, succession planning, and organisational culture.

Role of HRM in Employee Performance

  • The HRM strategies used can significantly influence employee performance.
  • Training and development initiatives provide employees with the skills they need to excel in their jobs.
  • A fair and equitable performance appraisal system can motivate employees, improve productivity, and promote desired behaviours.
  • Compensation and benefits strategies can incentivise employees to perform at their best.

Sustainable HRM

  • Sustainable HRM emphasises long-term human resource planning, with a particular focus on environmental and social factors.
  • This approach views employees as long-term assets and seeks to make organisational decisions that positively affect the broader community.
  • Sustainable HRM strategies might include implementing environmentally friendly workplace policies or investing in workforce diversity and inclusion initiatives.