MODELS OF HRM

SUBMITTED BY:
KRISH MAHNA, 03416503522
2ND YEAR, BBALLB(HONS.)

SUBMITTED TO:
MR. SHIVAM

UNIVERSITY SCHOOL OF LAW AND

LEGAL STUDIES
INTRODUCTION
Human Resource Management (HRM) is a strategic approach to managing an organization's
most valuable asset: its people. It encompasses the processes, policies, and practices involved
in acquiring, developing, managing, and retaining employees to achieve organizational goals
effectively and efficiently. HRM is a multidisciplinary field that combines principles from
management, psychology, sociology, economics, and law to create an environment where
employees can thrive and contribute to organizational success.
George Elton Mayo, defined it as "the development of a working environment that fosters
motivation, communication, and a sense of belonging among employees, leading to improved
performance and job satisfaction."
Peter Drucker, described HRM as "managing people tactically and strategically to achieve
organizational objectives, emphasizing the importance of aligning individual goals with those
of the organization."
David Ulrich, introduced the concept of HR as a strategic partner, stating that HRM is "about
creating a competitive advantage through people, focusing on building capabilities, fostering
innovation, and enabling high performance."
John Storey, defined it as "a distinctive approach to employment management which seeks to
achieve competitive advantage through the strategic deployment of a highly committed and
capable workforce, using an integrated array of cultural, structural, and personnel
techniques."

IMPORTANCE OF HRM
Human Resource Management (HRM) plays a vital role in the success and sustainability of
organizations across industries. Its importance lies in several key areas that contribute to
overall organizational effectiveness and employee well-being.
Firstly, HRM is essential for talent acquisition and retention. It involves identifying,
attracting, and selecting the right individuals with the skills, experience, and cultural fit
necessary to fulfill organizational goals. By implementing effective recruitment and retention
strategies, HRM ensures that organizations have a competent and engaged workforce.
Secondly, HRM is crucial for employee development and training. It involves designing and
implementing programs that help employees enhance their skills, knowledge, and
capabilities. This continuous learning and development approach not only improves
employee performance but also boosts morale, job satisfaction, and retention rates.
Thirdly, HRM plays a key role in fostering a positive work culture and employee
engagement. It involves creating a supportive and inclusive work environment where
employees feel valued, respected, and motivated to contribute their best efforts. Engaged
employees are more committed, productive, and likely to stay with the organization long-
term.
Fourthly, HRM is vital for performance management and feedback. It involves setting clear
performance expectations, providing regular feedback and coaching, and recognizing and
rewarding employees for their contributions. Effective performance management systems
help align individual goals with organizational objectives and drive continuous improvement.
Fifthly, HRM is critical for managing employee relations and ensuring compliance with labor
laws and regulations. It involves handling issues such as conflict resolution, disciplinary
actions, grievances, and ensuring a safe and fair workplace for all employees. Compliance
with legal requirements protects both employees and the organization from potential
liabilities.
Sixthly, HRM contributes to strategic planning and organizational development. It involves
aligning HR strategies with overall business goals, anticipating future workforce needs, and
implementing change management initiatives. HRM professionals play a strategic role in
driving innovation, diversity, and sustainability within organizations.

MODELS OF HRM
1. HARD HRM MODEL
The Hard Model of Human Resource Management (HRM) is a strategic approach that views
employees as a resource to be managed in a manner similar to other organizational assets,
such as capital and technology. This model emphasizes the alignment of HR practices with
organizational goals and objectives, with a focus on measurable outcomes and efficiency.
In the Hard Model of HRM, HR practices are designed to enhance organizational
performance and competitiveness. This includes activities such as strategic workforce
planning, job analysis and design, performance management, and rewards and recognition
systems. The goal is to ensure that the right people are in the right roles, equipped with the
necessary skills and resources to achieve desired outcomes.
Key characteristics of the Hard Model of HRM include a focus on quantitative measures and
data-driven decision-making. HR practices are often designed to generate measurable results,
such as increased productivity, reduced costs, and improved customer satisfaction. This
requires the use of metrics and analytics to assess the impact of HR initiatives on
organizational performance.
Another characteristic of the Hard Model is its emphasis on aligning HR practices with
business strategy. HR professionals work closely with senior management to understand
organizational goals and develop HR strategies that support strategic objectives. This
includes identifying critical skills and competencies needed for success, implementing
training and development programs, and managing talent effectively.
Additionally, the Hard Model of HRM emphasizes a high degree of control and
accountability. HR policies and procedures are designed to ensure compliance with laws and
regulations, as well as internal standards and guidelines. This includes clear performance
expectations, performance appraisal systems, and consequences for non-compliance or
underperformance.
 2. SOFT HRM MODEL
The Soft Model of Human Resource Management (HRM) is a strategic approach that focuses
on treating employees as valued assets and emphasizes their development, well-being, and
involvement in organizational decision-making processes. Unlike the Hard Model, which
views employees as resources to be managed for efficiency and productivity, the Soft Model
recognizes the importance of human relationships, emotions, and subjective experiences in
the workplace.
In the Soft Model of HRM, there is an emphasis on employee empowerment and
participation. This includes practices such as open communication, employee involvement in
decision-making, and fostering a supportive work culture where individuals feel valued and
respected. The goal is to create a positive work environment that promotes employee
engagement, creativity, and innovation.
Key characteristics of the Soft Model include a focus on qualitative measures and the holistic
well-being of employees. HR practices are designed to enhance job satisfaction, work-life
balance, and personal growth opportunities. This may involve initiatives such as flexible
work arrangements, wellness programs, and career development opportunities.
Another characteristic of the Soft Model is its emphasis on leadership and organizational
culture. HR professionals play a strategic role in shaping leadership practices, promoting
ethical behavior, and nurturing a culture of trust, collaboration, and inclusivity. This aligns
with the belief that motivated and engaged employees are more likely to contribute positively
to organizational goals.
Additionally, the Soft Model of HRM emphasizes a long-term perspective and relationship
building. HR practices focus on building strong relationships between employees, managers,
and the organization as a whole. This includes fostering a sense of belonging, promoting
diversity and inclusion, and valuing employee feedback and input.

3. HARVARD MODEL OF HRM

The Harvard Model of Human Resource Management (HRM) is a comprehensive and
strategic approach that views employees as valuable assets and emphasizes their involvement
in decision-making processes. Developed by Beer, Spector, Lawrence, Quinn Mills, and
Walton at Harvard University, this model considers multiple stakeholders and their
interrelated interests within an organization.
At the core of the Harvard Model is the belief that HRM practices should align with
organizational goals while considering the needs of employees, unions, customers, and
society. It identifies four key policy areas that HRM should address:
1. Situational Factors: These include external factors such as laws, unions, societal values,
and economic conditions, as well as internal factors like organizational culture, structure, and
strategy. The Harvard Model emphasizes the importance of understanding these factors to
develop HRM policies that are contextually relevant.
2. Stakeholder Interests: The model recognizes the diverse interests of stakeholders such as
employees, management, shareholders, customers, and the community. HRM practices
should balance these interests to create a harmonious and sustainable work environment.
3.HRM Policy Choices: HRM policies encompass areas such as recruitment, selection,
training, performance management, compensation, and employee relations. The Harvard
Model suggests that these policies should be designed to achieve organizational effectiveness
while considering the needs and expectations of stakeholders.
4. Consequences: HRM policies and practices lead to various outcomes or consequences,
including employee satisfaction, motivation, commitment, productivity, organizational
performance, and societal impact. The model emphasizes the importance of evaluating these
consequences to assess the effectiveness of HRM strategies.
The Harvard Model also highlights the role of HR professionals as strategic partners who
collaborate with stakeholders to develop and implement HRM policies that contribute to
organizational success. It advocates for a holistic approach to HRM that goes beyond
traditional administrative functions to encompass strategic planning, change management,
and organizational development.

4. GUEST MODEL OF HRM

The Guest Model of Human Resource Management (HRM) is a strategic approach that
emphasizes the integration of HRM practices with organizational strategy to achieve high-
performance outcomes. Developed by David Guest, this model focuses on four key
dimensions that influence HRM effectiveness:
1. HRM Strategy: The Guest Model emphasizes the importance of aligning HRM practices
with overall business strategy. This involves understanding the strategic goals and objectives
of the organization and developing HRM strategies that support and complement these goals.
HRM strategies may include talent management, performance management, employee
engagement, and learning and development initiatives tailored to meet organizational needs.
2. HRM Practices: The model identifies specific HRM practices that contribute to
organizational effectiveness. These practices include recruitment and selection processes to
attract and retain top talent, training and development programs to enhance employee skills
and capabilities, performance management systems to monitor and evaluate employee
performance, and reward and recognition mechanisms to motivate and incentivize high
performance.
3. HRM Outcomes: The Guest Model focuses on measuring HRM outcomes that impact
organizational performance. These outcomes include employee satisfaction, commitment,
engagement, productivity, innovation, and ultimately, financial performance. By achieving
positive HRM outcomes, organizations can enhance their competitive advantage and achieve
sustainable growth.
4. HRM Behavior: The model also emphasizes the role of HRM behavior in driving positive
outcomes. This includes HR professionals' behaviors such as strategic thinking, collaboration
with line managers, communication with employees, responsiveness to changing business
needs, and ethical decision-making. HRM behavior plays a crucial role in shaping
organizational culture, employee experiences, and overall HRM effectiveness.

5. ULRICH MODEL OF HRM

The Ulrich Model of Human Resource Management (HRM), developed by David Ulrich, is a
strategic framework that outlines the roles and responsibilities of HR professionals in
contributing to organizational success. The model emphasizes four key roles that HR
professionals should fulfill to add value and drive business performance:
1. Strategic Partner: In the Ulrich Model, HR professionals are strategic partners who
collaborate closely with senior management to align HR strategies with overall business
objectives. This involves understanding the organization's vision, mission, and goals, and
developing HR strategies that support strategic priorities such as growth, innovation, and
competitive advantage. HR professionals in this role contribute to decision-making processes
and provide insights on how HR practices can drive organizational success.
2. Change Agent: HR professionals also serve as change agents who facilitate organizational
change and transformation. They play a critical role in identifying change initiatives,
communicating changes effectively to employees, and implementing strategies to manage
resistance and ensure successful change adoption. This involves assessing organizational
readiness for change, developing change management plans, and supporting employees
throughout the change process to minimize disruption and maximize outcomes.
3. Employee Champion: In the Ulrich Model, HR professionals are advocates for
employees, focusing on creating a positive employee experience and fostering a culture of
engagement, well-being, and inclusivity. They are responsible for designing and
implementing HR practices that support employee development, work-life balance,
recognition, and career growth. HR professionals in this role also handle employee relations
issues, address grievances, and ensure fair treatment and compliance with policies and
regulations.
4. Operational Executor: The Ulrich Model recognizes the importance of HR professionals
as operational executors who deliver HR services efficiently and effectively. This involves
managing day-to-day HR functions such as recruitment, onboarding, performance
management, compensation and benefits administration, training and development, and HRIS
management. HR professionals in this role focus on optimizing HR processes, leveraging
technology, and ensuring compliance with HR policies and procedures.

6. BEST FIT MODEL OF HRM

The Best Fit Model of Human Resource Management (HRM) is a strategic approach that
emphasizes the alignment between HR practices and organizational strategy. Unlike the
universalistic approach that advocates for standardized HR practices, the Best Fit Model
emphasizes the need to tailor HR practices to fit the unique needs and characteristics of each
organization.
At the core of the Best Fit Model is the belief that there is no one-size-fits-all approach to
HRM. Instead, HR practices should be designed and implemented based on the specific
requirements of the organization, its industry, its culture, and its strategic objectives. This
customization ensures that HR practices are aligned with organizational goals and contribute
to overall business success.
Key components of the Best Fit Model include:
1. Strategic Alignment: The Best Fit Model emphasizes the importance of aligning HR
practices with the strategic objectives of the organization. This involves understanding the
organization's mission, vision, values, and strategic goals, and designing HR practices that
support and reinforce these strategic priorities. For example, if an organization's strategy is
focused on innovation, HR practices may include recruitment of creative talent, fostering a
culture of experimentation, and providing resources for research and development.
2. Contextual Fit: The model recognizes that the effectiveness of HR practices depends on
the organizational context, including factors such as size, industry, competitive environment,
and culture. HR professionals must consider these contextual factors when designing and
implementing HR practices to ensure that they are relevant, meaningful, and impactful.
3. Flexibility and Adaptability: The Best Fit Model advocates for flexibility and adaptability
in HR practices to respond to changing business needs and external factors. This includes
regularly reviewing and updating HR practices to ensure they remain aligned with
organizational strategy and responsive to evolving challenges and opportunities.
4. Employee-Centric Approach: While focusing on strategic alignment and contextual fit,
the Best Fit Model also emphasizes the importance of considering the needs and preferences
of employees. HR practices should be designed to enhance employee engagement,
motivation, satisfaction, and well-being, ultimately contributing to improved performance
and organizational success.

CONTEMPORARY TRENDS AND CHALLENGES

1. Strategic HRM
Issue: The challenge lies in aligning HRM practices with the new organizational strategy
emphasizing innovation and growth, shifting from a previous focus on cost-cutting.
Situation Overview: A company, is undergoing a strategic shift from cost-cutting to
prioritizing innovation and growth. This transformation necessitates a realignment of HRM
practices such as recruitment, training, and performance management to support the new
strategic direction effectively.
Case Study Application: Drawing insights from IBM's HRM transformation under CEO
Ginni Rometty, where HR practices were realigned to foster innovation through skills
development and internal mobility, the company can implement similar strategies. This
includes investing in employee training and upskilling programs focused on innovation,
creating career pathways that encourage internal mobility and cross-functional collaboration,
and revising performance management systems to measure and reward innovative
contributions.
Application of Ulrich Model of HRM:
1. Strategic Partner Role: HR professionals collaborate closely with senior management to
understand the vision, mission, and goals of the organization. They develop HR strategies
aligned with the strategic priorities of innovation and growth. This involves assessing current
talent capabilities, identifying skill gaps related to innovation, and designing recruitment
strategies to attract innovative talent.
2. Change Agent Role: HR professionals act as change agents to facilitate the transition from
a cost-cutting mindset to an innovation-driven culture. They communicate the strategic shift
to employees, emphasizing the importance of skills development and adaptation to new roles.
HR implements training programs focused on fostering creativity, problem-solving, and
collaboration to support innovation.
3. Employee Champion Role: HR ensures that employees are engaged and motivated to
contribute to the organization's innovation agenda. This includes designing performance
management systems that recognize and reward innovation, promoting internal mobility to
allow employees to explore new opportunities aligned with their interests and skills, and
fostering a culture of continuous learning and development.
4. Operational Executor Role: HR efficiently executes HRM functions related to
recruitment, training, and performance management in line with the strategic objectives. They
leverage technology and data analytics to identify high-potential employees, track their
progress, and provide targeted development opportunities. HR also monitors the impact of
these initiatives on organizational performance and adjusts strategies as needed.

2. High-Performance Work System (HPWS):

Issue: The challenge is to establish a culture of high performance and employee engagement
within a manufacturing firm.
Situation Overview: A manufacturing firm has adopted a new High-Performance Work
System (HPWS) model, which includes elements such as job enrichment, employee
involvement in decision-making processes, and continuous training. The goal is to enhance
productivity, quality, and employee satisfaction through these practices.
Case Study Application: Drawing inspiration from Toyota's Production System, which
emphasizes employee involvement, teamwork, and continuous improvement, the
manufacturing firm can implement similar strategies. For instance, adopting Toyota's
principles of Kaizen (continuous improvement) and empowering employees to contribute
ideas for process enhancement can align with the HPWS model's objectives. Additionally,
fostering a culture of teamwork and collaboration, as seen in Toyota's cross-functional teams,
can enhance employee engagement and overall performance.
Application of Guest Model of HRM:
1. HRM Strategy: The Guest Model emphasizes aligning HRM practices with overall
business strategy. In this case, HR professionals focus on designing HRM strategies that
support the HPWS model's objectives. This involves identifying key areas for job enrichment,
defining mechanisms for employee involvement in decision-making, and implementing
continuous training programs aligned with the firm's strategic goals.
2. HRM Practices: Specific HRM practices are crucial for the success of the HPWS model.
These may include redesigning job roles to include more challenging tasks (job enrichment),
establishing forums for employee input and feedback (employee involvement), and
implementing regular training sessions to enhance skills and knowledge (continuous
training). These practices aim to empower employees, improve job satisfaction, and foster a
sense of ownership and responsibility.
3. HRM Outcomes: The Guest Model focuses on measuring HRM outcomes that impact
organizational performance. For the manufacturing firm, the desired outcomes include
increased productivity, higher product quality, improved employee engagement, and lower
turnover rates. These outcomes are indicators of the effectiveness of the HPWS model in
creating a culture of high performance and employee engagement.
4. HRM Behavior: HR professionals play a crucial role in driving positive outcomes through
their behaviors. This includes fostering collaboration between management and employees to
implement the HPWS model effectively, ensuring clear communication channels for
employee input, providing coaching and support for continuous learning, and recognizing and
rewarding high performance and contributions to the organization's success.

3. Best Fit and Best Practice Models:

Issue: The challenge is to identify the most effective HRM practices tailored to the specific
organizational context of a tech startup.
Situation Overview: A tech startup has implemented flexible work hours and a flat
organizational structure as part of its HRM practices to attract and retain millennial talent.
The goal is to create a work environment that appeals to the preferences and needs of this
demographic group known for valuing work-life balance, autonomy, and collaboration.
Case Study Application: Drawing insights from Google's HRM practices, which include
innovative perks aligned with its high-performance culture, the tech startup can implement
similar strategies. For example, offering attractive perks such as free meals, onsite services,
wellness programs, and professional development opportunities can enhance the overall
employee experience and contribute to talent attraction and retention.
Application of Best Fit Model of HRM:
1. Strategic Alignment: The Best Fit Model emphasizes aligning HR practices with the
strategic objectives and context of the organization. In this case, HR professionals analyze the
startup's goals, values, and target employee demographics (millennials) to design HR
practices that fit the specific context. Flexible work hours and a flat organizational structure
are aligned with the startup's goal of attracting and retaining millennial talent seeking
autonomy and a collaborative work environment.
2. Contextual Fit: The model recognizes the importance of considering organizational
context, including industry, culture, and workforce demographics. HR professionals tailor HR
practices such as flexible work hours and a flat structure to match the preferences and
expectations of millennials in the tech industry. This customization ensures that HR practices
resonate with employees, leading to higher satisfaction and retention rates.
3. Flexibility and Adaptability: The Best Fit Model advocates for flexibility and adaptability
in HR practices to respond to changing business needs and external factors. In the startup
context, HR continually evaluates the effectiveness of flexible work hours and the flat
organizational structure, making adjustments as needed to optimize employee engagement
and performance.

4. Employee Relations and Diversity Management:

Issue: The challenge is to effectively manage diverse workforces and create inclusive
workplaces within a multinational corporation.
Situation Overview: A multinational corporation is grappling with challenges related to
cultural differences, gender equality, and work-life balance among its diverse workforce.
These challenges require strategic approaches to promote inclusivity, address discrimination,
and create a supportive work environment.
Case Study Application: Taking inspiration from Airbnb's Diversity and Inclusion Initiatives,
which include diverse hiring practices and inclusive community guidelines to combat
discrimination and promote diversity, the multinational corporation can implement similar
strategies. For instance, adopting inclusive recruitment practices, providing diversity training,
creating support networks for underrepresented groups, and implementing policies that
promote work-life balance can contribute to fostering an inclusive workplace culture.
Application of Harvard Model of HRM:
1. Situational Factors: The Harvard Model emphasizes understanding both external and
internal factors influencing HRM practices. In this case, HR professionals assess cultural
diversity, gender dynamics, and work-life balance issues within the multinational corporation.
They consider external factors such as cultural norms, legal requirements, and societal
expectations, as well as internal factors like organizational culture, structure, and values.
2. Stakeholder Interests: The model recognizes the diverse interests of stakeholders such as
employees, management, shareholders, customers, and the community. HRM practices
should balance these interests to create a harmonious and sustainable work environment. For
example, addressing gender equality promotes fairness and equality among employees,
enhancing overall morale and productivity.
3. HRM Policy Choices: HR professionals design and implement policies and practices to
address diversity and inclusion challenges. This may include adopting diverse hiring
practices, providing diversity training and education programs, implementing flexible work
arrangements to support work-life balance, and establishing clear guidelines and
consequences for discriminatory behavior.
4. Consequences: The effectiveness of HRM policies and practices leads to various
outcomes or consequences, including improved employee satisfaction, motivation,
commitment, productivity, and organizational performance. By evaluating these outcomes,
HR professionals can assess the impact of diversity and inclusion initiatives on achieving a
more inclusive workplace.

5. HRM in the Gig Economy:

Issue: The challenge is to adapt HRM models to effectively manage contingent workers and
freelancers in the gig economy.
Situation Overview: A ride-sharing company is dealing with legal and ethical challenges
regarding gig workers' rights and benefits. This includes issues such as classification,
compensation, benefits, and overall treatment of gig workers. Adapting HRM practices to
address these challenges is crucial for maintaining a positive relationship with gig workers
and complying with legal and ethical standards.
Case Study Application: Learning from Uber's HRM Challenges, where the company faced
lawsuits and public scrutiny over its treatment of drivers, the ride-sharing company can
implement reforms in its HRM policies and benefits for gig workers. This may involve
reclassifying gig workers appropriately, revising compensation structures to ensure fairness
and transparency, providing access to benefits, addressing concerns about work conditions,
and enhancing communication channels with gig workers.
Application of Harvard Model of HRM:
1. Situational Factors: The Harvard Model emphasizes understanding external factors such
as laws, societal values, economic conditions, and internal factors like organizational culture
and strategy. In this case, HR professionals assess the legal landscape regarding gig workers'
rights, public perception, and the company's values and goals related to fair treatment and
compliance.
2. Stakeholder Interests: HRM practices should balance the interests of stakeholders,
including gig workers, management, customers, regulators, and the public. This involves
addressing gig workers' concerns about fair compensation, benefits, job security, and work
conditions, while also considering the company's operational needs and financial
sustainability.
3. HRM Policy Choices: HR professionals design and implement policies and practices
tailored to managing gig workers effectively. This may include developing clear guidelines
for gig worker classification, establishing fair compensation structures, providing access to
benefits such as healthcare and retirement plans, ensuring transparent communication, and
addressing grievances promptly.
4. Consequences: The consequences of HRM policies and practices impact various
outcomes, including gig worker satisfaction, retention, productivity, legal compliance,
reputation, and organizational performance. By evaluating these outcomes, HR professionals
can assess the effectiveness of HRM strategies in managing gig workers and driving positive
results.