MODELS
OF
HUMAN RESOURCE
MANAGEMENT

Learning Outcome
Recognise different models of HRM and explain their applicability to a
particular context.
Human Resource Management Model
Purpose of Human Resource Management Model
Harvard Model
Matching Model
Guest Model
Dave Ulrich Model
Storey Model
Best practice model
Best fit Model
Bath People and
Performance Model

HRM model (or HR framework) is a term which
stands for an organisation’s strategic scheme designed
to help administer and coordinate business functions
regarding human capital.
The goal of creating HRM models is to help companies
manage their workforce in the most efficient and
effective manner possible, in order to achieve the
established objectives.
HRM Model

Purpose of Human Resource
Management Model
They provide an analytical framework for studying Human resource
management (for example, situational factors, stakeholders, strategic
choice levels, competence)
They legitimize certain HRM practices; a key issue here is the
distinctiveness of HRM practices: “It is not the presence of selection or
training but a distinctive approach to selection or training that matters”.
They provide a characterization of human resource management that
establishes variables and relationships to be researched.
They serve as a heuristic device-something to help us discover and
understand the world for explaining the nature and significance of key
HR practices.
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Harvard Model The Harvard model claims to be
comprehensive in as much as it seeks to
comprise six critical components of HRM.
The dimensions included in the model are
stakeholders
 Interests
 Situational factors
 HRM policy choices
 HR outcomes
 Long-term consequences
 Feedback loop through.
The outputs flow directly into the
organization and the stakeholders
This model was developed by
Beer et al (1984)

• The Stakeholders interests recognize the importance of 'trade offs' between the interests of the owner and those of
employees. Trade offs also exists among other interest groups. But this is the challenge of HR manager, who needs to
balance the interests of all stakeholders.
• The Situational Factors influence management's choice of HR strategy. the contingent factors included in the model
include work force characteristics, management philosophy, labour market, task, technology and laws and social values.
• HRM Policy Choices emphasize the management's decisions and actions in terms of HRM can be fully appreciated only if it
is recognised that they result from an interaction between constraints and choices. This model outlines four HR Policy
areas:
• Employee Influence - delegated levels of authority, responsibility, power etc.
• HR Flows - recruitment, selection, promotion, appraisal, termination etc.
• Reward System - Pay system, motivation etc.
• Work System - design of work and alignment of people
• These HRM policy choices lead to 4 Cs of HR Policy Outcomes, that have to be achieved:
 Commitment
 Congruence
 Competence
 Cost Effectiveness
• Beer et al (1984) proposed that long term Consequences both benefits and costs of HR policies should be evaluated at
three levels: Individual, Organizational and Societal. These in turn should be analyzed using the 4 Cs.
• The Feedback Loop is the sixth component of the Harvard Model. as was stated above, situational factors influence HRM
policy and choices, and are influenced by long-term consequences. Similarly, stakeholders interests influence HRM policy
choices, and in turn, are impacted by long-term consequences (see Figure)

Matching Model Fombrun, Tichy & Devanna model held that HR system and
the organizational structure should be managed in a way
that is congruent with organizational strategy.
This model identified four common HR processes performed
in every organization:
• Selection: matching people to jobs
• Appraisal of performance
• Rewards: emphasizing the real importance of pay and
other forms of compensation in achieving results
• Development of skilled individuals
These processes are linked in a human resource cycle.
This is the first and very simple model that serves as a
heuristic framework for explaining the nature and
significance of the key HR activities. But it is incomplete as it
focuses only on four functions and ignores all
environmental and contingency factors that impact HR
functions.
This model was developed by
Fombrun, Tichy & Devanna
in 1984

Guest Model This model claims that the HR manager has specific
strategies to begin with, which demand certain
practices and when executed, will result in outcomes.
These outcomes include :
• Behavioral
• Performance-related
• Financial rewards.
The model emphasizes the logical sequence of six
components:
• HR strategy
• HR practices
• HR outcomes
• Behavioral outcomes
• Performance results
• Financial consequences
This model was developed by
David Guest in 1997

The Guest Model

Dave Ulrich Model
The Ulrich Model focus on processes and functions,
this model is centred around people of the
organisation and the roles they play in the grand
scheme of things.
Ulrich emphasised that remodelling HR doesn’t
rely primarily on HR functions. He stressed that
CEO, together with senior management, also has a
significant part to play in the process.
The Ulrich Model falls under the creative HRM and
focuses on organising all HR functions into four
central roles:
• Strategic partner
• Change agent
• Administrative expert
• Employee champion (or employee advocate).
This model was developed by Dave Ulrich in
1997

Strategic Partner
Strategic Partner is about alignment of HR activities and initiatives with the global business strategy and it is the task of
the HR Management and HR Business Partners. Sometimes, it sounds easy to implement Strategic Partnership, but it
needs a lot of effort from Human Resources.
Change Agent
Change Agent is a very important area of the Ulrich’s HR Model. Change agent is about supporting the change and
transition of the business in the area of the human capital in the organization. The role of Human Resources is the
support for change activities in the change effort area and ensuring the capacity for the changes.
Administrative Expert
Administrative Expert changes over the period of time. In the beginning, it was just about ensuring the maximum
possible quality of delivered services, but nowadays the stress is put on the possibility to provide quality service at the
lowest possible costs to the organization.
Employee Champion
Employee Champion is a very important role of Human Resources. The employee advocate knows what employees
need and HRM should know it. The employee advocate is able to take care about the interest of employees and to
protect them them during the process of the change in the organization.

Storey Model
The Storey model talks about two forms of HRM.
• Hard HRM practices
• Soft HRM practices
First is the ‘Hard’ form that focuses on the resource
side of human resources. It focuses on notions of tight
strategic control. It emphasizes the role of
management in cutting the cost by keeping only the
required number of workers in the organization. Its
main elements are close integration of human
resource policies, systems, and activities with business
strategy.
The second form is soft HRM that focuses on the
human side. This lays importance on communication
among employees and motivation among them to lead
the organization. They consider employees as a
valuable asset and a source of competitive advantage
because of their commitment, reliability, skills, and
efficiency.
The model was developed by
John Storey in 1989

The storey model was based on four components:
Beliefs: He believed that human resource is the most important factor of production. Organizations success is based on the commitment and
capabilities of their employees, therefore employees should be treated as valuable assets and not mere factors of production.
Strategic qualities: Hrm is strategic in nature and therefore requires the attention of the senior managers and top executives. It is also the most
important source of competitive advantage. HR strategies are dynamic in nature; they take into consideration their business environment changes.
Role of line manager: It is clear from hrm philosophy that people management is too important to be left to personnel specialist and this is seen
through the strong link that exists between employees and line managers. Line managers perform HRM roles in their day to day activities.
Key levers: Culture is more important than procedures and systems because it reduces the case of conflict in an organization thereby increasing
understanding and unity. This is primarily important because culture management brings consensus on overall organization values, beliefs and
assumptions. It is essential in flexibility and commitment.
He emphasized, the long term importance of hrm. It needs to be integrated into the management functions and is seen to have importance consequences on
the ability of the organisation to achieve its goals. The key functions of HRM which are seen to encourage commitment rather than compliance.

Best practice model • The best practice model is one that can be
applied universally. For the best fit, human
resource policies must be aligned with
business strategy and objectives.
• This can be done by checking regularly on
the needs of the organization as well as
employees.
• The best practice leads to superior business
employees. These processes help the
organization to have a comparative
advantage.

Pfeffer (1994) gave various best practices that are universal in nature and
adopting them leads to the superior performance of the organization.
These are:
• Employment security
• Selective hiring
• High compensation based on performance
• Self-managed teams
• Training to have skilled workers,
• Equality among workers
• Sharing essential information with the employees of the firm.

Best fit Model
The best fit approach emphasizes the
importance of ensuring that HR strategies are
appropriate to the circumstances of the
organization, including its culture, operational
processes and external environment. HR
strategies have to take account of the particular
needs of both the organization and its people.
The starting point should be an analysis of the
business needs of the firm within its context
(culture, structure, technology and processes).
This may indicate clearly what has to be done.
Thereafter, it may be useful to pick and mix
various ‘best practice’ ingredients, and develop
an approach that applies those that are
appropriate in a way that is aligned to the
identified business needs

Bath People and
Performance Model
In this model performance is a function of
Ability + Motivation + Opportunity (AMO).
On the outside ring, 11 policy or practice areas
are identified to feed into and give meaning to
AMO. The second crucial feature of the model is
the central box – front-line management –
which draws attention to the fact that nearly all
HR policies are applied through and by line
managers.
It is these managers who bring policies to life.
Organizational commitment, motivation and
job satisfaction all lead to discretionary
behaviour, which in turn generates
performance outcomes, which in themselves
contribute to commitment, motivation and job
satisfaction.
The model was developed by Purcell et al (2003)

Thank
you