1. With reference to the’ hard’ and ‘soft’ (Storey, 1989) academic model of HRM, explain the main similarities and differences between the approaches to people management at Café Co before and after the review
When Kim became appointed as HR director, the attitude towards HR changed from viewing employees as a tool for reaching the company’s objectives to a valued asset to invest in. Before the new structure, performance of the staff was higher valued than communication and commitment, their work was linked to the achievement of company goals and the HR manager was responsible for recruitment, taking on countless administrative duties. After implementing the new policies, the HR manager became a member of the board, they started to refer to the personnel as “HR partners” and colleagues, the development and retention of staff was crucial and a leaflet with values and workshops were executed. HR changes to an advisory function within the company, line managers were getting responsibility for HR activities and those activities were considered to contribute to the development and success of the organization. Kim argued for better compensation, especially for baristas. Commitment and encouragement of employees was emphasized with the aim to improve the retention rate. The previous approach can be linked to Storey’s hard model of HRM where HR is a source of controlled, intellectual capital which is used as a tool for achieving goals. (Price, 2007) The soft approach values commitment and motivation in order to attain objectives and getting successful. Well-being, satisfaction and development of the individual make the business better off. (Bloisi, 2007). The implications of the new approach will give incentives to work, raise morale and passion. Having a satisfied workforce will improve the efficiency of the company. Although both approaches aim to achieve long-term goals and improve