Hrm models

Faculty à University of Technology and Applied Sciences (Ibra College of Technology, Oman)
14 May 2021

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Hrm models

  2. 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
  3. 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
  4. 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. ???
  5. 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)
  6. • 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)
  7. 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
  8. 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
  9. The Guest Model
  10. 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
  11. 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.
  12. 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
  13. 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.
  14. 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.
  15. 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.
  16. 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
  17. 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)
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