MODELS OF HUMAN RESOURCE
MANAGEMENT (HRM)
UNIT 10 SHRM, SESSION 2
P R E PA R E D B Y: M S S H A B N A M
Unit 10 SHRM, Prepared By: Ms. SHABNAM
LEARNING OBJECTIVES
By the end of this session students will be able to:
Understand the HRM system
Explore various models of HRM
To gain an understanding in relation to the application of the various HRM
models within organisations
Unit 10 SHRM, Prepared By: Ms. SHABNAM
HRM SYSTEM
HRM system operates through HR systems that bring together in a coherent way:
HR philosophies describing the overarching values and guiding principles adopted in
managing people
HR strategies defining the direction in which HRM intends to go
HR policies which are the guidelines defining how these values, principles and the
strategies should be applied and implemented in specific areas
HR processes consisting of the formal procedures and methods used to put HR strategic
plans and policies into effect
HR practices comprising the informal approaches used in managing people
HR programmes which enable HR strategies, policies and practices to be implemented
according to the plan
Unit 10 SHRM, Prepared By: Ms. SHABNAM
VARIOUS MODELS OF HRM
The Harvard Framework
Guest’s Model of HRM
Best Practice Model
Storey’s Hard and Soft HRM
Patterson’s Model of HRM
Best Fit/Contingency Model
Unit 10 SHRM, Prepared By: Ms SHABNAM
Theoretical Perspectives on HRM
The HRM models:
Provide an analytical framework for studying HRM
Legitimate certain HRM practices
Establish variables and relationships to be researched
Explain the nature and significance of key HR practices.
Unit 10 SHRM, Prepared By: Ms. SHABNAM
MODELS OF HRM
The Harvard Framework
The Harvard school suggested that HRM had two
characteristic features
Line managers accept more responsibility for
ensuring the alignment of competitive strategy and
personal policies
Personnel has the mission of setting policies that
govern how personnel activities are developed and
implemented in ways that make them
Unit 10 SHRM, Prepared By: Ms. SHABNAM
THE HARVARD FRAMEWORK FOR HRM
Stakeholder
Interests:
Shareholders
Management
Employees HR outcomes Long-term
Government • Commitment Consequences
Unions HRM Policy choices:
• Congruence Individual
Employee Influence
Human Resource Flow • Competence Well-Being
Reward Systems Organisational
• Cost
Work Systems Effectiveness
Situational Factors: Effectiveness Societal Well-
Workforce
Characteristics being
Business Strategy &
Conditions
Management
Philosophy
Labour Market
Unions
Task Technology
Laws and Social Source: Beer etal, (1984)
Values
Unit 10 SHRM, Prepared By: Ms. SHABNAM
THE HARVARD FRAMEWORK
Employees are significant stakeholders in an organisation. They have their own
needs and concerns along with other groups such as shareholders and customers
The Harvard Framework outlines four HR policy areas:
Employee influence - delegated levels of authority, responsibility, power
Human resource flows - recruitment, selection, promotion, appraisal, termination,
etc
Reward systems - pay systems, motivation, etc
Work systems - design of work and alignment of people
Which in turn lead to the 'four C's' or HR policies that have to be achieved:
Commitment
Congruence
Competence
Cost effectiveness
Beer et al (1984) proposed that long-term consequences both benefits and costs of human
resource policies should be evaluated at three levels: individual, organisational and
societal. These in turn should be analysed using the four Cs
Unit 10 SHRM, Prepared By: Ms SHABNAM
GUEST’S MODEL OF HRM
Unit 10 SHRM, Prepared By: Ms. SHABNAM
GUEST’S MODEL OF HRM
David Guest's (1989, 1997) model of HRM has 6 dimensions of analysis:
HRM strategy
HRM practices
HRM outcomes
Behaviour outcomes
Performance outcomes
Financial outcomes
The model is prescriptive in the sense that it is based on the assumption that HRM is distinctively different
from traditional personnel management and rooted in strategic management
It is idealistic, implicitly embodying the belief that fundamental elements of the HRM approach (essentially
those of the Harvard map) such as commitment have a direct relationship with valued business consequences
However, Guest has acknowledged that the concept of commitment is 'messy' and that the relationship
between commitment and high performance is difficult to establish. It also employs a 'flow' approach, seeing
strategy underpinning practice, leading to a variety of desired outcomes
Unit 10 SHRM, Prepared By: Ms SHABNAM
GUEST’S MODEL OF HRM
Unit 10 SHRM, Prepared By: Ms. SHABNAM
‘Hard’ and ‘Soft’ HRM
‘
Storey (1989) has distinguished between ‘hard’ and ‘soft’ forms of
HRM
'Hard' HRM focuses on the costs incurred by the human resources of
a firm
'Soft' HRM on the other hand, stresses the 'human' aspects of HRM
Unit 10 SHRM, Prepared By: Ms. SHABNAM
Characteristics of High-Commitment/‘Soft’ HRM and Low-
Commitment ‘Hard’ HRM
CHARACTERISTICS HIGH-COMMITMENT LOW-COMMITMENT/
/SOFT HRM HARD HRM
EMPLOYER ATTITUDE People –focused Task-focused
Considers HR as biggest assets Employees employed to do jobs as
directed
RECRUITMENT Based on attitude and integration with Based on the ability to do the job or to
the team be trained to do the job in short span of
time
JOB DESCRIPTION High degree of multi-skilling allowing Highly defined, with narrow scope
staff to work in variety of areas
WORK DESIGN Continually review work design to Doing the job the same way it has
be efficient and enjoyable for staff always been done
VISIBILITY OF CORPORATE Team members understand the bigger Employees on told what they need to
GOALS picture know for the role
WORKPLACE CULTURE Shared culture common to all Usually hierarchical
CAREER PROGRESSION Assists employees to plan career and No progression offered
provides opportunity for employees to
develop within business
Unit 10 SHRM, Prepared By: Ms. SHABNAM
BEST PRACTICE MODEL
Johnson (2000) details, “the best practice or the high performance work
practices are described as HR methods and systems that have
universal, additive, and positive effects on organisational performance”.
This definition relates to the fact that the best practices that the
organisation employs, each will add to the previous, thus compounding
the resulting performance of the organisation.
Unit 10 SHRM, Prepared By: Ms. SHABNAM
BEST PRACTICE MODEL
The ‘best practice’ school of HRM is based on
universalism. The assumption here is that a set of
practices aimed at high commitment or high
performance will benefit all organisations regardless
of context.
Unit 10 SHRM, Prepared By: Ms. SHABNAM
BEST PRACTICE MODEL
The elements of best practices identified by Pfeffer (1998) are
now widely recognised, if not universally accepted:
Employment Security/ Job Security
Sophisticated Selection /Selective Hiring
Team-working and Decentralisation
High wages linked to organisational performance
Extensive Training
Narrow Status Differentials
Communication and Employee Involvement
Unit 10 SHRM, Prepared By: Ms. SHABNAM
Patterson’s Model of HRM
HRM practices can improve company performance by
Increasing employee skills and abilities
Promoting positive attitudes and increasing motivation
Providing employees with expanded responsibilities so that they can
make full use of their skills and abilities
The above factors provide a basis for determining ‘good’ or ‘high
performance’ HRM practices
Unit 10 SHRM, Prepared By: Ms. SHABNAM
BEST FIT OR CONTINGENCY MODEL
Argument: HR strategy becomes more efficient when it is linked/tailored
to its surrounding context or environment of the business
There are 2 elements:
(1) External Fit: The fit is linked to the operations strategy/ marketing strategy etc. That
is, the competitive strategy of the overall business. Schuler and Jackson (1987)
developed the connection between competitive advantage, employee
behaviours and HR practices.
(2) Internal Fit: HR policies and practices must be coherent. Policies which work in
opposite direction should be avoided. For example, encouraging teamwork but
rewarding individual performance.
Unit 10 SHRM, Prepared By: Ms. SHABNAM
BEST FIT vs. BEST PRACTICE
Evidences suggest that HR practices are inevitably
driven by context
Societal- the environmental context
Organisational- size
However, there are many generic processes for
example, (selection/appraisal) which make it
sensible to follow best practice
Unit 10 SHRM, Prepared By: Ms. SHABNAM
OVERVIEW OF STEPS TO ADOPT BETTER HRM
Align the HR strategy with the Business strategy
( use appropriate HR approach/integration and find
the key linkage)
Align the interests of the workers and the interests of the
firm ( resolve conflict/communication)
In other words HRM needs to be “Strategic” so firms need
to adopt SHRM in order to enhance organisational
performance and attain organisational objectives
Unit 10 SHRM, Prepared By: Ms. SHABNAM
