Advantage and disadvantage of hard and soft hrm
Businesses should use HRM hard or soft? The answer depends on many factors, because each method has advantages and disadvantages.
Hard HRM
The main advantages of the hard version of HRM: Staff are well monitored costs are minimised, companies can increase / reduce output when needed, greater centralisation / control by managers, more control and efficiency, more standardisation of processes, equality between more employees, more diversity, among employees with competition competition helps industry.
The disadvantages of hard HRM: achieving production efficiency, but not permanent, because people are tired, under control, feel respected and care should be discouraged and quit.
Soft HRM
The main advantages of soft HRM: High levels of employee Participation, higher motivation, greater Commitment from staff, less absenteeism, greater productivity. Using soft HRM approach, maintaining the company's employee collaboration, enhance cooperation, enthusiasm and work of the staff, so encourage employees can achieve maximum performance from them, reaching the competitive advantage. Moreover, using soft HRM helps the communication and teamwork between employees and management, staff feels good to work under the direction of democracy, creating equal opportunity for each individual, using right people for the demands of the job. In addition, it also encourage employees to work in teams, not just following orders or rules and eliminate the delay, the monotony of work, increase the creativity of employees.
On the other hand, soft HRM also exist a number of weaknesses: first thing is the increased cost for the development of skills, training, wage increases, the support staff to work. Second thing is delaying decision-making for the synthesis of the opinions of employees, management. The third, sometimes the middle managers do not feel satisfied because they see their value is not appreciated. In addition, application of soft HRM also create inertia for employees and in some developing countries, the management level are limited, the status remains her father his children, for their loved ones in the company and keep those positions do not deserve power.
I my opinion, each method has its strengths and weaknesses, with each specific business, leaders must use flexible and suitable to the characteristics of the company. To Japan, an Asian word seriously in business ethics, the use of soft HRM is a right direction, especially Japan's largest corporations such as Toyota. Many researchers have posed the question 'What makes a successful corporate juggernaut automotive world?' answer is to take excess capacity management as a strategic weapon.
The stability can not believe the performance of the Toyota is a direct result of superior management capabilities. They always achieve the desired performance with instantaneous production (just-in-time), continuous improvement (kaizen), a product line continuously (one-piece-flow), self-checker (Jidoka) and average standardized (heijunka). But Toyota's success comes from the business philosophy of profound benefit to society than mere money.
The base is based on nurturing the ability of management, teamwork, corporate culture, development and mutually beneficial relationships with suppliers and maintain learning, continuous improvement is organized.
According to the report of Toyota in 2005, we can see that the company has applied soft HRM is very effective, creating the trust, loyalty of employees in several ways: Toyota to build the training academy staff and abroad, that they have good skills and develop their own ability of; keep staff numbers steady, communication with employees and employee family regularly work with balancing Increased support for childcare, long -term Contracts Offered to contract employees, etc
To respect human strategy, Toyota give employees long-term jobs, better working conditions, needs and interest in their lives, so they really want to stick with the company, loyalty to company, to drive a successful, working actively. The survey in 2004, Toyota had 83% employee satisfaction with working conditions of the company, and most of them say that 'I'm Proud to work at Toyota '.