PEOPLE MANAGEMENT

ASSIGNMENT NO. 1

Student ID: 2008854581

Module Name: People Management.
Module Leader: Dr. Denise Thursfield
Tutor: Dr. Marianne Afanassieva
Submission Date: 20/04/09
Word count: 2590

UNIVERSITY OF HULL

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INDEX
Page no

1. Introduction 3
2. Objectives of Human resource management 3
3. Hard model of HRM 4
4. Soft model of HRM. 4
5. Human resource planning (HRP).. 5
6. Hard HRP Vs Soft HRP 6
7. Critical evaluation with examples of Hard & Soft HRP... 6
8. Performance management (PM).....7
9. Hard PM Vs Soft PM.. 8
10. Critical evaluation with examples of Hard & Soft PM 8
11. Conclusion. 9
12. References..10

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 Introduction
Human resource management is the key stone for whole structure of an organization. It is
responsible for searching the talent, recruiting, providing required training, assessing the
employees performance also reducing the staff members when not required. Human resource
manager performs various ranges of roles such as strategic partner of an organization as
well as employee companion at work place (Gramberg et al, 2006). Employees look for
career avenues, attractive salaries, work experience, promotions etc. Since last three decades
the rigid model of salary management is replaced with more flexible model of payment on
day-to-day & hour-to-hour basis (Risher H., 2003, pg.20). Virtually every employer is in
search of cheaper labour & employee is in search of higher remuneration (Mises L. V., 1946).
The HR managers tend to link human assets to the strategic needs of the organization. Two
models can be considered in this strategic HRM policy, Hard & Soft. Soft HRM based on
commitment of an employee to the work. It considers human part of HRM. On other hand
hard HRM based on use of employees for achieving the desired strategic goal of that
organization. It considers resource part of HRM. The Bureaucratic organization leads to
decentralise of recruitment & major functions of HR department. Line managers are
supposed to perform the functions such as recruitment, remuneration etc. In some large
bureaucratic organizations HR department surpasses this line managers functions, leaving
line managers inactive (Armstrong M., 2006, pg.95). Use of hard or soft strategy depends
upon type & strategic objectives of that organization. However establishing new trends in
bureaucratic organizational culture often mislead the employees & work environment (Mises
L. V., 1946).

Human Resource Management & Its Objectives

The HRM can be defined as, The Productive use of people in achieving the organisations
strategic business objectives and satisfaction of individual employee needs (Stone, 1998,
cited in Greenwood M. 1992).
Objectives of HRM
1. Managing people in effective manner for advancement of an organization.
2. Coordinating HRM strategies with business processes & corporate policies.
3. Developing a competent & flexible organization which will able to respond with
changing situations in future. (Armstrong M., 2006)
4. Encouraging team working & cooperative behaviour among the employees in the
organization.
5. Incorporating customer first approach in organization.
6. Selecting, promoting, appraisal also encouraging employees for career development in
organization. (Armstrong M., 2006)

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 Hard model of HRM

It is also known as Matching model or Michigan model (Fombrun et al, 1984, cited in
Armstrong 2006, pg.4). It considers the employee as business resources, such as equipments
& raw materials. Main objectives are to get workforce on cheaper rate & exploiting them as
much as possible for maximum return. Hard model approached organizations have strict
managerial control over all employees & they are considered in an instrumental or utilitarian
stance (Truss 1997, pg.60).
Characteristics of Hard HRM (Beardwell et al., 2004)
1. It is based on quantitative approach with emphasis is given on total job available &
required number of people. E.g. factory labours.
2. Employees are directly controlled by senior authorities.
3. Demand & supply strategy is emphasized. Same as manpower planning.
4. Employees are treated like other resources & treated with tight management.
5. Stress is given on maximum utilization of employees.
6. HR department dont concern about training, promotion & career development of its
employees.
7. Employees often undergo assessment of their performance.
8. Senior authorities are more concerned with fulfilment of organizations strategic
objectives. They have very little or no concern about employees attitude or
motivational aspects.
9. Employees are treated like other instruments for harnessing the required output.
10. Hard HRM is present in most of the bureaucratic organizations where employees are
under close supervision by instruments like CCTV cameras in the office.

Soft model of HRM

It is also known as Harvard model (Beer et al., 1984, cited in Armstrong 2006, pg.6). This
HRM emphasizes on the communication, leadership & motivation aspects its employees. In
this model staff members are treated as a valued asset of an organization. Employees are
considered as a source of obtaining competitive advantage through commitment, adaptability
& high quality of skills (Armstrong 2006).
The soft & hard approaches are considered as a back bone for HRM practices in variety of
organizations. However the according to Truss (1999), even though the organization may be
said to based on soft approach, the reality is often based on hard approach. The organizations
give priority to welfare of their enterprise than an individual.
Characteristics of Soft HRM (Beardwell et al., 2004)
1. It is based on qualitative approach in which emphasis is given on two way
communications, attitudes & commitment of employees.
2. There is no direct control on employees by senior authorities. Instead employees are
encouraged for team working.
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3. Emphasis is given on organizational culture which is integrated with employees goal

& values.
4. Employees are rewarded for their achievements.
5. Instead of direct assessment of performance employees undergo group discussion &
feedback on performance.
6. Necessary training & workshops are arranged for employee development.
7. Employees are considered for promotions & career development.
8. By analysing the work load & stress, attention is provided on health of its employees
by providing meditation exercises for employees are provided inside the
organizations. E.g. IT firms like UNTD in USA, employee start work by onsite
meditating, IT firms like Yahoo, Google and Apple Computers provide onsite
massage to employees (Business week magazine, Hovanesian M.D., 28 july2003).
9. Good performance is always rewarded in soft HRM, that boosts qualities like high
morale, loyalty & high retention rate. That improves working culture, influences
positive surrounding in work environment & attracts new employees (Hicks T.,
Ezinearticles.com, 2009).

Human Resource Planning

To achieve the desired strategic goal, every organization needs the planning of human
resources. Human resource planning is a part of people resourcing which broadly deals with
obtaining & retaining the human capital, employing them productively & releasing them in
slack season (Armstrong 2006, pg.358). It can be defined as, the process for ensuring that
the human resource requirements of an organization are identified and plans are made for
satisfying those requirements (Scott et al., 1994).
Objectives of Human Resource Planning (Armstrong 2006, pg.364)
1. To recruit required number of people with right skills, competencies & expertise.
2. Forecasting the supply & demand of human resources, developing any action plans
needed to address imbalance & evaluating their effectiveness (Beardwell et al., 2004,
pg.184).
3. Developing a well trained workforce & anticipating the future needs of organization
in case of changing environment.
4. Providing flexible work systems & improving the utilization of staff.
5. Measuring the labour turnover by qualitative methods like exit interviews & leaver
questionnaires (Beardwell et al., 2004, pg.166).
However human resource planning is different than manpower planning. Manpower planning
can be defined as, a strategy for the acquisition, utilisation, improvement and retention of an
enterprises human resources (Beardwell et al., 2004). The HRP is aimed to fulfil
organizations future requirements in terms of qualitative analysis & quantitative analysis.
The qualitative elements can be referred as soft model & quantitative elements can be
described as hard model.
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 Hard Vs Soft Human Resource Planning

The hard HRP concerns with the quantitative analysis that is, the availability of right number
of people at right time when needed. The soft HRP deals with qualitative analysis which
accounts the availability of people with right attitudes, motivation & commitment of
employees for welfare of the enterprise. The soft model based on assessment for qualities,
measurements for these qualities & staff survey reports, reviews generated by focus groups
etc (Armstrong 2006, pg.364). The soft HRP joins the corporate goals, employee values &
behaviours (Marchington and Wilkinson 1996). Career development of employees may be
integrated with strategic objectives of an organization. The organizations which follow soft
model consider providing training, career development opportunities, arrange workshops &
encourage for skill developments. However the attempt made to improve bottom line
performance that could lead to hard side of HRM approach (Truss et al, 1997).

Critical Evaluation with Examples of Hard & Soft HRP

Although the hard & soft models have different regulations but ultimate goal is to benefit the
organization. In some companies it is necessary to have hard approach where staff member
are paid on hourly basis. Because such companies does have short term objectives for e.g.
selling a product. Other organizations where objectives are long term like customer services
in global MNCs etc, soft approach is suitable (Zhang et al, 2003). Most of the factories &
organizations in UK undertake hard approach. The staff members working in these
organizations are paid on hourly basis.
ASDA is a UKs largest chain supermarket. ASDA takes survey about the staff attitude &
questionnaire from staff that left organization. The survey taken in year 1997 showed that,
employees those were agreeing about career growth in ASDA was very few in number. As a
result ASDA put forward a new programme about employee training to hourly paid staff to
be a manager. In year 2000, ASDA put a 3-stage comprehensive selection process among the
staff members which involves coaching on communication skills, full time training etc. As a
result ASDA reduced the turnover of its employees & also increased 64% of employee
satisfaction about the promotion as well as career development (Beardwell et al., 2004,
pg.187). This case study provides insight in to how ASDA turned some of its hard strategies
in soft approach for gaining employee satisfaction towards job.

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 Performance Management
Performance management is planned process based on measurements, feedback, positive
reinforcement etc. It is based on shared understanding of what is to be achieved. Performance
management can be defined as a systematic process for improving organizational
performance by developing the performance of individuals who work in them and
formulating capabilities of teams (Armstrong 2006, pg.493).
Objectives of performance management
1. Motivating & rewarding employees to do their best.
2. Aligning employee goals with enterprise goals for better results.
3. Managers direct employees & teams, by resourcing performance to focus the ultimate
objective of the organization. (Armstrong 2006, pg.496).
4. Appraising the performance through a role of a line manager (Beardwell et al., 2004,
pg.529).
Performance appraisal
Performance appraisal is more or less an engineered process. There are many methods for
examining performance such as self & peer assessment, line manager assessment, 360
degree feedback etc (Armstrong 2006). Many organizations use SMART mnemonic for
performance appraisal. It stands as, S=Specific, M=Measurable, A=Achievable, R=Relevant,
T=Time framed etc. The elements on which performance management is based are
agreement, measurement, feedback, positive reinforcement and dialogue (Armstrong 2006,
pg.496).
The AMO theory suggests that,
P= f (A, M, O)

(Boxall et al, 2003, pg.20)

P Performance.
A Ability.
M Motivation.
O Opportunity.
Performance is a function of ability, motivation & Opportunity. People perform well when
they are able to do so, when they have motivation to do so & when work environment
provides necessary support & avenues for their development (Boxall et al, 2003, pg.20).
360 degree appraisal
In this performance appraisal system the feedback from all levels of organizations such as
superiors, subordinates, peers etc & also the customers is considered. The purpose is to give
the comprehensive picture of individuals performance (Beardwell et al., 2004, pg.528).

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Problems in Performance appraisal

Performance appraisal is no doubt well structured tool for estimation of performance of an
individual but it has some concerns that need to be highlighted. It suffers from problems like
reliability, validity & bias. There is one more issue called as recency effect in which
managers is importance to recent performance & ignoring earlier performances. Other
problems like line managers might lack the technical knowledge or they may perceive it as a
bureaucratic nuisance (Beardwell et al., 2004, pg.529).

Hard Vs soft Performance Management

The hard & soft models of performance management can be analysed by theory X & theory
Y which studies Hard & soft approaches respectively (Truss et al., 1997, pg.55). The theory
X considers man as a performance system & it accounts economic model of a man. In case of
hard model the individual does have a tight control on his activities by managers & it often in
terms of staff surveys & techniques of performance appraisal. On the other hand according to
theory Y or soft approach, the notion that man will exercise self-direction and self-control in
the service of objectives to which he is committed is practiced (McGregor, 1960, cited in
Truss et al., 1997). In soft model, if employee believes in self fulfilment through his work
then enterprise should consider its employees growth & development.
The soft approach in organization believes on ability, support through motivation & help for
his career development by providing opportunities also often rewarded for success stories.
Soft approached organization understands the advantages of integrating personnel fulfilment
for gaining its own competitive advantage. (McGregor, 1960, cited in Truss 1997)

Critical Evaluation with Examples of Hard & Soft Performance

Management
The performance of an employee is obviously plays important role for growth of an
organization. The performance is assessed in both the hard & soft approaches but the way in
which it is done is different. According to Mumford (1971) Promotions or upward
progression may be considered as a reward for employee. Organizations having hard model
approach may not consider giving opportunities for its employees such as promotions & other
benefits. Soft approach organizations do provide training & promotions. Truss et al (1997)
has provided a study survey based on 287 employee interviews in 8 companies such as
British Telecom, Westminster Trust, Citibank, Glaxo, Hewlett Packard, KJ surchard, Lloyds,
WH Smith News provides comprehensive data regarding organizations behaviour. All levels
of staff members are included in this study survey including the managing director & line
managers of respective companies. HP has got response about 56% & WH Smith has got
response about 46%, so HP & WH Smith can be considered for analysis of model of the
HRM employed in this organization.

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Consider following table,

No.
Feedback type
HP
WH Smith News
1 Number of employees got 1 to 20 days
87
47
training
2 Number of employees got no training at
13
53
all
3 Percentage of employees saying, my
80%
73%
organization is flexible enough to cope
with change
4 % of employees saying, The
69%
43%
organization does not encourage me to
develop new skills
5 % of employees saying, I do not have
33%
35%
opportunity of getting promotion
6 % of employees saying, I do not have
19%
27%
great deal of trust on manager
Table no: 1. the employees perceptions about their organization (Truss et al, 1997).
Truss et al, (1997), further discuss that, the statistical data provided in above table clearly
indicates that, no single organization is adopted with purely soft or purely hard approach.
The organizations show characteristics of soft approach by providing training &
development. But mostly it is for improving bottom line performance. Truss et al, further
concluded that rhetoric of HRM is soft but reality is hard, where the interest of
organization prevailing over the individual.

Conclusion
The type of strategy (hard or soft) followed by an organization may be depend upon category
of that organization, while hard model are mostly considered for achieving the short term
objectives & soft model can be considered for achieving the long term objectives. When soft
approach follower HR department links the strategic objectives of organization with
employees then it tends to follow hard HRM policies. No organization is considered as a
purely hard model adopted or soft model follower, the organization seems to follow hardsoft mix approach.

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 References
Books
Armstrong M., (2006) Handbook of Human Resource Management Practice, London, Kogan
Page.
Beardwell I., Holden L. & Claydon T., (2004) Human Resource Management: a
Contemporary Approach, 4th Edition, London, Prentice Hall, Financial Times.
Blyton P. & Turnbull P., (1992) Reassessing Human Resource Management, London, Sage
publications.
Boxall P. & Purcell J., (2003) Strategy and Human Resource Management, New York,
Palgrave Macmillan.
Marchington, M., and Wilkinson, A., (1996) Core Personnel and Development, London, IPD
House.
Mises L. V., (1946) Bureaucracy, New Haven, Yale University Press.
Rolstadas A., (1994) Performance management: A Business Process Benchmarking
Approach, London, Chapman & Hall.
Stone R. J., (1998) Human Resource Management, Brisbane, John Wiley and Sons.

Journals
Deadrick D. & Stone D., (2009) Human Resource Management Review 19: Emerging trends
in human resource management theory and research, San Antonio, ScienceDirect.
Gramberg B. V. & Teicher J. (2006) Asia Pacific Journal of Human Resources, Managing
neutrality and impartiality in workplace conflict resolution: The dilemma of the HR manager,
Melbourne, Sage publications.
Greenwood M., (2002) Ethics and HRM: A Review and Conceptual Analysis, Monash
university, Victoria. Journal of Business Ethics, Volume 36, Number 3 / March, 2002.
Kluwer Academic Publishers.
Risher H., (2003) Refocusing Performance Management for High Performance, Sage
publications.
Truss C., Gratton L., Hope-Hailey V., McGovern p. & Stiles P., (1997) Journal of
Management Studies 34:1 January 1997: Soft & Hard Models of Human Resource
Management: A Reappraisal, Oxford, Blackwell Publishers Ltd.
Zhang M. & Edwards C., (2003) Paper for IIRA-13th World Congress, Berlin, September 9th
2003: HRM Practice and the Influence of the Country of Origin in Chinese MNC's
operating in the UK, Surrey.
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Business Magazines
Hovanesian M. D., (2003) BusinessWeek, Zen and the Art of Corporate Productivity, New
York, Accessed Online at:
http://www.businessweek.com/magazine/content/03_30/b3843076.htm
Websites
Hicks T., (2009) Why Good Workers Must Be Rewarded, Ezine articles,
Accessed online on: http://ezinearticles.com/?Why-Good-Workers-Must-BeRewarded&id=2231185

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