Pathway to Employee Resourcing: Use of Soft HRM & Hard HRM
What is this Soft & Hard HRM ?
There are two different approaches of Human Resources Management which is Soft HRM & Hard HRM.
"Soft HRM is associated with the human relations movement, the utilization of individual talents while Hard HRM focuses on the importance of `strategic where human resource policies and practices are closely linked to the strategic objectives of the organization" (Catherine Bailey & McGovern, 1997)
Differences between soft and hard HRM
Features of Soft HRM & Hard HRM
(Developed by the blogger)
Aligning Soft HRM & Hard HRM into Employee Resourcing
Soft HRM
In this model, the HRM would significantly be focusing on the needs of workforce as per their roles and responsibilities with extra benefits of motivations and reward systems.
Most of the banks are using performance based reward system and offer competitive pay structure. Further, employees are encourage as well as empowered for seeking delegation and taking responsibility. In this scenario employees influence by how much power, responsibility and authority voluntarily delegated by the management and to whom. Apart from that, the banks are using more technology, development opportunities and information to enhance employee knowledge to perform the assigned tasks effectively and efficiently.
Example 1 : Most of the private banks in Sri Lanka (NTB, DFCC, Sampath, commercial etc.) providing counselling facility to their employees. These facilities are very confidential and employees can apply if they feel the need. Professional external counselors handling this program and all the cost bear by the banks.
Example 2 : All most all the banks in Sri Lanka supports employee relations by organizing cultural events, let them get involve in decision making in company activities such as sports days, annual family trips sponsored by the company etc.
(DFCC Annual Report, 2022)
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(Sampath Bank Annual Report, 2022)
Hard HRM
In this model, the HRM would significantly be focusing on the needs of workforce and manage and recruit professionals. Moreover, employees used as resource for a trade where a strong link is identified with that of the planning of corporate business.
This hard HRM strategies have been gradually removing from banking sector. However, implementing managerial decisions for the employees can be seen in the banks where do not have employee unions. In addition to that, nowadays most of the private sector banks are closely monitoring performance and KPIs as they are more into sales culture.
Example 1 : Most of the private sector banks in Sri Lanka has this performance based culture which has a clear define performance metrics where all the employees can have a brief idea about what will be their performance marks at the end of the year based on the metrics and their own performance. In this case bias can be eliminate.
Example 2 :
FTR Concept - In one of the well known private bank has the FTR concept (First Time Right) which strictly monitors the daily errors that the employees might to while working and it reports to the COO in weekly basis. So, the managers have to give explanations for these errors to the COO. This concept is very stressful to the employees at the initial stage.
Time consumed very much when they complete the tasks as they check the work twice or many times before submitting to the relevant un it. On the other hand customer service getting low and complaints of customers increased due to the time taken.
This video explains a brooder area of these two approaches in a simple way.
References
Catherine Bailey, L. G. H. H. & McGovern, P. G., 1997. Soft and Hard Models of Human Resource Management: A Reappraisal. Journal of Management Studies, p. 34
DFCC Annual Report, 2022. Key Events of the Year. [Online]
Available at: https://annualreports.lk/dfcc2022/recognition/key_events_of_the_year.html
[Accessed 03 August 2024]
Available at: https://www.hibob.com/hr-glossary/soft-hrm-hard-hrm/
[Accessed 02 August 2024]
Sampath Bank Annual Report, 2022. Strength In Motion, Colombo: Sampath Bank
ReplyDeleteThis blog delivers information about Soft and Hard HRM in Banking. This excellently highlights how combining both approaches can progress employee management and complete performance. The clear example and practical advice make it worth reading for anyone interested in HR practices in the Banking Sector.
Of cause, Soft HRM can greatly impact on employee resourcing in a good manner while hard HRM manage employees by using rules and regulations.
DeleteYour blog effectively contrasts Soft and Hard HRM strategies in employee resourcing. It highlights how Soft HRM focuses on employee needs and motivation, while Hard HRM emphasizes resource management and corporate alignment. The shift in banks from Hard to Soft HRM reflects a trend toward performance-based rewards and empowerment.
ReplyDeleteYes I agree. In my opinion until people get used to do something hard HRM can be use. Once it become a practice or culture soft HRM is the best way to continue the correct process in the long run.
DeleteThank you for your detailed analysis. You've accurately highlighted several key aspects of how banks are utilizing performance-based reward systems and competitive pay structures to drive employee motivation and effectiveness. It’s valuable to recognize that banks are not only focusing on monetary rewards but also on empowering employees through delegation of authority and responsibility. This approach not only enhances job satisfaction but also fosters a sense of ownership and accountability among staff. By allowing employees to take on more responsibility, banks can tap into their potential for leadership and innovation, which ultimately contributes to organizational success.
ReplyDeleteAt first delegating authority was not in the banking industry. However, it has become a part of success as when delegating authority the task completing or target achieving level is very high. So, now the banks creating small group of sales people and assigning a team leader to each group to drive the group of people in a correct path.
DeleteCompetitiveness is very high within group to group and it automatically help the banks to achieve their overall target.
Very clear article about soft and hard HRM skills. Combining elements of soft and hard HRM can result in a more balanced approach to staff resourcing, addressing both the human and operational aspects of workplace management. Great work.
ReplyDeleteExactly, a proper combination of both of this can drive the bank towards success without a doubt.
DeleteVery detailed article with examples. HRM is more important to a company since it is complex and depends on number of variables, such as the company's objectives, culture, sector, and business environment etc.In my opinion, organisations would be better off taking a balanced approach that incorporates aspects of both hard and soft HRM.
ReplyDeleteAs per my experience HR departments of most of the private banks use this soft HRM concept . As you mentioned they are organizing many cultural events to balance the mismatches & to foster equality within the organization.
DeleteThis post provides a balanced and insightful exploration of Soft HRM and Hard HRM approaches in employee resourcing within the banking sector. The analysis on how these strategies impact talent acquisition and retention is particularly enlightening. It's clear that both approaches have their place, depending on the organization's goals and culture. The examples provided help to illustrate the practical application of these HRM strategies, making the content both informative and relatable. I appreciate the depth of research and look forward to more discussions on how these HRM practices can be optimized in different organizational settings
ReplyDeleteI believe these methods can be use in every financial organization as well as non-financial organizations as well. But before implementing these in to other organizations the management should have a proper understanding about their employee expectation and pattern of their common behavior.
DeleteA nuanced viewpoint on striking a balance between employee-centric and strategic management techniques is offered by the discussion of the use of soft and hard HRM in employees resourcing within the banking industry. The real-world implementations of these HRM techniques are demonstrated by the examples from Sri Lankan banks, which also emphasize the significance of authority delegation and performance-based rewards for employee efficacy and motivation. This thoughtful research emphasizes how important it is to combine the two HRM models in order to promote a happy and effective staff.
ReplyDeleteThank you for highlighting the nuanced balance. Actually my personal experience in two private sector banks are the base of this article. the two banks have totally different soft and hard HRM application in different situations. Since the internal bank operation practices differs from one another the strategies that they use to maintain proper employee resourcing is quite different as well.
DeleteThis blog provides a comprehensive comparison of Soft and Hard HRM approaches, highlighting their application in employee resourcing. By illustrating examples from Sri Lankan banks, it effectively demonstrates the balance between employee welfare and strategic objectives. The insights into performance metrics and the FTR concept offer a practical understanding of HRM practices.
ReplyDeleteOf cause, This FTR concept is a new implementation to that particular bank and it is the best Hard HRM example that I could found with my personal experience. It was really hard to adapt!
DeleteAs discussed in the blog, Two of the most widely adopted models of human resource management are the hard and soft styles. These are based on opposing views of human nature and managerial control strategies. The hard model is based on tight strategic control, and an economic model of man according to Theory X, while the soft model is based on control through commitment and Theory Y. The argument is that because these assumptions are so divergent, they cannot both properly be incorporated within a single model of human resource management.
ReplyDeleteSoft HRM is associated with the human relations movement, the utilization of individual talents and per-spective on individuals. Hard HRM focuses on the importance of strategic, where human resource policies and practices are closely linked to the strategic objectives of the organization.
Thank you for adding more value to the article by explaining the theoretical side of these two models. Sometimes people need a little push to do something, it might be lack of knowledge, fear to perform the job without backup or it can be laziness. Anyway the employers support is need as much as possible I guess.
DeleteThis blog offers a comprehensive insight into Soft and Hard HRM approaches, with examples of their use in employee resourcing. Soft HRM is about employees well-being and development, while Hard HRM pertains to strategic alignment & performance metrics. The examples demonstrate these points quite well, and finding a way to combine them can be challenging.
ReplyDeleteThis blog clearly explained soft HRM and hard HRM and how they impact to the organization. So providing human resource theories to this approach lead to prevent issues and enhance well-being and job satisfaction. Delivering a strategic plan to align soft HRM and Hard HRM to organization into employee resourcing lead to long term success in an organization. So the way you highlighted the issues is very informative and provide a deep idea for boosting organization performance.
ReplyDeleteGood concept, and now in practice, many organizations, including banks, combine soft and hard HRM approaches to improve employee productivity, balancing strategic objectives with employee development and motivation.
ReplyDeleteGood explanations with knowledgeable facts
ReplyDeleteContent is with clear explanation. Good effort and the article is clearly understandable to everyone.
ReplyDeleteI find your article on soft HRM and Hard HRM very enlightening. The difference between focusing on employee's needs Vs Performance based environment which happening in daily life today as been discussed finding balance has been explained by you beautifully.
ReplyDeleteYour blog effectively explains Soft and Hard HRM strategies in employee resourcing. Its' clear that both approaches have their place, depending on the organization's goals and culture. The analysis on how these strategies impact talent acquisition and retention is clearly elaborated. Can use new strategies to retain the top talented employee.
ReplyDeleteYour article provides a clear comparison between Soft HRM and Hard HRM and their applications in employee resourcing. It’s insightful to see how these approaches are utilized in the banking sector, with Soft HRM focusing on employee well-being and engagement, while Hard HRM emphasizes performance metrics and managerial control. The examples from Sri Lankan banks illustrate these concepts well, highlighting how different strategies impact both employee satisfaction and organizational efficiency.
ReplyDeleteI found the example of performance-based metrics in Sri Lankan banks interesting. That's excellent to see how clear performance metrics can help in reducing bias and bringing transparency in the view of expectations to the employee. This certainly can drive motivation and focus to us.
ReplyDeleteManeesha, what a great valuable article you have brought up. Your blog article on the process of converting employee resourcing through Soft and Hard HRM is a professional, clear, and informed comparison of these two methods. The definition of soft HRM your make is excellent. It focuses on employee needs, motivation, and development, while hard HRM is concerned with the business strategy and productivity that is aligned to the organization's goals. Once again that was effective reading and it helped my academics as well
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