Recent Trends in Human Resource

Management
Unit 9

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 Hard and Soft Approaches to HRM
 Storey in 1989 who elaborated on the Michigan and Harvard
models on management.
 Harvard model is Soft HRM.
 Michigan model is Hard HRM.

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Hard Approach to HRM (Task-Focused / Low-Commitment)
 Hard approach to HRM treats employees simply as a resource
of the business (like machinery & buildings).
 Focal Points of Hard approach to HRM are Performance
Management, Strategy in Achieving Organizational Goals,
Cost Control, Hiring, Moving and Firing .
 Hard approach to HRM emphasizes a closer integration of HR
policies, systems and activities with the business strategy.
 Storey argues that the hard approach emphasizes the
quantitative, calculative and business strategic aspects of
managing the headcount resource.
 The hard version assumes control over individual activities
with a view to securing the competitive advantage of the
organization.

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 Features of Hard Approach to HRM
 Short-term changes in employee numbers (recruitment,
redundancy)
 Minimal communication from the top down
 Little empowerment or delegation
 Appraisal systems focused on making judgments (good and
bad) about staff
 Taller organizational structures
 Suits autocratic leadership style

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SOFT Approach to HRM (People-Focused / High-Commitment)
 Soft approach to HRM treats employees as the most important
resource in the business and a source of competitive advantage.
 Soft approach to HRM emphasizes the integration of HR policy
with HR strategy, treats employees as valued assets, a source of
competitive advantage through commitment, adaptability and high
quality.
 Focal Points of soft approach to HRM are needs of employees,
employee training, development, commitment, participation,
motivation, workforce flexibility, quality, strategic integration

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 Features of Soft Approach to HRM
 Longer-term workforce planning
 Strong and regular two-way communication
 Performance-related rewards (e.g. profit share, share
options)
 Delegation of authority
 Appraisal systems focused on identifying and addressing
training and other employee development needs
 Flatter organizational structures
 Suits democratic leadership style

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 Cross cultural training
 Cross cultural refers to interaction of two or more than two
cultures existing within an organization and its working
environment.
 Cross cultural training refers to the training given to employees for
understanding cultural differences and values of different nations
and society.
 Cross cultural training refers to formal programs designed to
prepare persons of one culture to interact effectively in another
culture or to interact more effectively with persons from different
cultures.
“Cross cultural training refers to the training given to employees
relating to the cultural differences between nations, the awareness
of which helps in running smooth business across the nations. It is
essential for doing business in present scenario involving multiple
nations and cultures”- HR Dictionary, 2018
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 Types of cross culture training
1. General awareness training
 It provides to the employees for understanding cultural
values of different people living in different regions.
2. Specific training
 It is related to particular culture or nation.
 It mainly focuses on general belief, values, traditions, ethics
and protocols of a particular nations.

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 Cross Cultural Training are essential for the following:
1. Expats (Expatriates)
2. Cross Boarder Business
3. Multicultural Teams
4. Global Executives

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1. Expats (Expatriates)
 Expats are the employees who work for orgnizations in
foreign lands.
 Thus, before sending them for foreign locations having
cultural differences, cross cultural training are essential.
2. Cross Boarder Business
 When the organizations are conducting their export/ import
business, they have to deal with foreign business partners.
 To reduce to the risk of business failure, cross training are
essential.

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3. Multicultural Teams
 Many organizations have difference teams with diverse
cultural backgrounds.
 A multicultural teams want to collaborate effectively, they
need cultural and language training to be successful.
4. Global Executives
 Executives working on foreign assignment should have
especial ability to speak and understand the language of host
country.
 During meetings, executives should face difficulty if they do
not understand the cultural differences.
 Thus, cross cultural training are essential to the global
executives.

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 Significance of Cross Culture Training
 It supports to understand the cultural values and standard of
people of different nations and regions.
 It supports for taking good decision without having any
biasness.
 It improves communication skills of employees.
 It improves trust and confident among people as it helps to
overcome barriers.
 It helps to increase volume of business by entering into new
market.

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 Managing diversity
 Managing diversity is defined as planning and implementing
organizational systems and practices to manage people so that
the potential advantages of diversity are maximized while its
potential disadvantages are minimized.
 It is necessary to develop emergent human resource policies
and programs to manage diverse workforce both from the
individual and organizational basis.
 Workforce diversity is concerned with involvement of
heterogeneous types of employees in an organization who
represent different age, gender and ethnicity.

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Approaches of Managing Diversity

Broadly, there are two approaches of managing workforce

A. Individual approaches B. Organizational approaches

1. Understanding 1. Organizational polices

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 Talent management
 It is also known as human capital management.
 Talent management is the management principle and
application which intends to recruit, develop, utilize and
maintain highest qualified employees in the organization.
“Talent management is the automated end- to- end process of
planning, recruiting, developing, managing, and compensating
employees through out the organization”.- Dessler and
Varkkey

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 Talent Management Systems
1. Recruitment
2. Performance management
3. Learning management systems
4. Compensation management

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 Significance of Talent Management
1. Proper division of work
2. Maintain talent employees
3. Hiring better people
4. Understanding employees
5. Professional development decision

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 Competency mapping
 Competency mapping is the process of identifying the specific
skills, knowledge, abilities and behaviors required to operate
and accomplish assigned job.
 Competency mapping makes easier for the management to
identify qualified candidates, assess performance, focus
training efforts and enhance overall productivity.
 Job analysis is an important means of competency mapping of
individual employees.
 It identifies an individual’s strengths and weaknesses.

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 Methods of competency mapping
1. Assessment centre method
 Situational observation
2. Critical incidents method
3. Personal interviews method
4. Questionnaires method
5. Psychometric test method
 Aptitude test and achievement tests

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 Outsourcing of HR professionals
 Outsourcing came from the American terminology “outside
resourcing”, meaning to get resources from the outside.
 HR outsourcing is a process of recruiting human resources
from other organizations to handle the human resource related
functions.
 Outsourcing of HR professionals is the process of
subcontracting human resource functions to other
organizations having professional employees.
 The organization needs to identify certain areas that can be
outsourced to minimize the cost of operation and to produce
higher quality.

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 Advantages of Outsourcing HR Functions
1. Risk management
2. Cost savings
3. Maintain efficiency
4. Employee development

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 Downsizing and layoffs
 Downsizing simply means releasing employees because of
lack of service for them in the organization.
 Reducing the number of workforce in the organization is
termed as downsizing.
 A downsizing strategy reduces the scale (size) and scope of a
business to improve its financial performance.
Why do firms downsize?
 Reduce costs
 Reduce layers of management to increase decision making
speed and get closer to the customer
 Generate positive reactions from shareholders in order to
improve valuation of stock price
 Increase productivity

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 Layoffs
 Layoff is temporary suspension or termination of employment
(with or without notice) by the employer or management.
 Layoffs are not caused by any fault of the employees but by
reasons such as or lack of work, cash, or material.
 Permanent layoff is called redundancy.

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 Emergence of Work and Family Issues
 The present emerging issue of HR management is to maintain
balance between work life and family life of the employees.
 HR manager needs to take necessary measures to improve the
situation by introducing schemes such as flexible work time,
counseling, job sharing, provision of child care centre, and
leave on request etc. to maintain balance in life of employees.
 Work-life balance is proper prioritizing between work (career
and ambition) on one hand and life (health, pleasure, leisure,
spiritual) on the other.

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 Work-life balance
 Work–life balance is a concept including proper prioritizing
between "work" (career and ambition) and "lifestyle"(Health,
pleasure, leisure, family and spiritual development/meditation).

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 Requirements of Work Life Balance
a. Flexible work schedule
b. Attractive working environment
c. Other arrangements
 Paid vacation schemes, maternity and parental leave

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 Flexi time
 Flexi time is a scheme where an organization gives its
employees the opportunity of a flexible working hours
arrangement.
 Flexi time is a flexible way of working which allows
employees to fit their working hours.
 In other words, the employees can work any time they choose,
but per day they have to put in 8 hours of effort or 48 hours
per week .

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 Advantages of Flexi-Time
1. Better productivity and morale
2. Reduced tardiness and absenteeism
3. Employees decide their duty timings, their morale could be
improved
4. Reduced employee turnover
5. Increase in work-consciousness rather than time-consciousness
6. No late-coming
7. Better equipment and facilities utilization
8. Less over-time pay
9. Less supervision

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 Healthy workplace
 Healthy workplace is one when workers and managers
collaborate for continuous improvement in health, safety, and
wellbeing of all members of the organization.
 It should involve sufficient space for work, good ventilation
and lighting, proper layout of furniture and equipment,
sanitation and first aid facility, and friendly relation with all
the workers.
 Healthy workplace offers employees access to workshops that
promote physical and mental will-being,
 The employees having physically and mentally health can
create new concept, ideas, and knowledge which would be
beneficial for the organization.

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 Significance of Healthy Workplace
 It helps to maintain value of people and promotes trust among
them.
 It promotes and encourages good relationship among all the
members of the organization.
 It facilitates to maintain balance between work life and family
life of employees.
 It helps to maintain open and transparent communication
between all levels of staff.
 It encourages employees to show their creativity and
innovation.
 It improves the practice of team spirit and job satisfaction.

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 Impact of Technology
Technology is the method or process of converting inputs into
outputs.
a. Better service to manager
b. Enhance efficiency and effectiveness
c. Effective recruitment and selection
d. Management of data and information
e. Minimization of operating cost
f. Better customer service

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Thank you

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