Human resource management can be either rigorous or soft, but a combination of both is usually best. Rigorous management treats employees as assets and focuses on short-term staffing issues, while soft management values employees as people and emphasizes communication, training, and long-term goals. A blended approach is often used, as a purely rigorous or soft approach can have negative consequences. During a recession, companies focus on retaining current employees through salary and hiring freezes and a tailored HR management plan.
Rigorous human resource management refers to a human resource strategy that emphasizes employees as assets that are either beneficial or detrimental to the company. Rarely is a completely hard or soft approach to human resource management (HRM) the best choice; almost all companies use a combination of the two. Business planning in this style of HR management typically has the larger goals of the leading company.
Employees are viewed as assets by employers, just like manufacturing equipment. Organizational goals of sales, growth and profit are front and center and staffing issues are short-term, pushing people to do the job and if they can’t do it. Difficult HR management uses little communication or lateral support. The emphasis is on getting the job done, not rewarding performance.
Tough human resource management usually accompanies a pragmatic approach to business management. There is little or no communication from the highest grades to the lowest. Any information leaked to lower echelons seeps through layers of senior management. A small company might communicate directly, but in a very large national or global organization, this becomes impractical. Lower-level workers are seconded from managers; they may not even know who they are.
Conversely, many companies employ a soft HR management style where employees are valuable assets as people and the company focuses on employee retention, communication, and long-term goals. Competitive pay and reward systems are in place, along with comprehensive training and cross-training. Managers encourage teamwork and delegation and allow for empowerment—that is, letting employees do their jobs without micromanaging or limiting their ability to produce or help customers. Soft HRM is easier to implement in a smaller company with fewer people, so you can pay individual attention.
Most companies use a combination of both. Harsh human resource management is often viewed as autocratic. As a result, a completely hard-core HRM approach can alienate employees and cause problems in employment relationships, retention and production due to absenteeism and resentment. It will cost companies money in terms of retraining frequent new hires and consequently managing lost productivity. A totally soft HRM style can produce personnel expenses that can compromise the competitive advantage.
A 2011 study conducted by University College Dublin and Queens University Belfast in Ireland showed that a recession does not appear to have pushed companies into a purely hard-core HR strategy to cut costs. Instead, they focused on a blended approach that included assessments, communication, motivation to keep the employees they already had. Salary and hiring freezes have helped reduce personnel costs by focusing on retaining current and competent employees by eliminating training and hiring costs. An HR management plan that takes these factors into account and is specifically tailored to the needs of the business contributes to a better chance of survival in a harsh economic climate.
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