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Models of Human Resource Mangement
Models of Human Resource Mangement
number of activities. For example, HR planning practice is sub-divided into redefining job
descriptions to increase clarity of job, steps to enrich jobs, lines of authority, organizational
structure, etc. Similarly, education and training encompasses activities like leadership training,
training in quality, communication, job specific employee training, remedial training for career
growth and so on. The quality modeled HRM activities like leadership training in quality,
communication, mentoring, job specific employee training for career growth and so on. The
quality modeled HRM activities would progress in tandem with quality efforts as illustrated in
Table 1.1.
TABLE 1.1
Variables Baldrige HRM
Outcome Customer focus and satisfaction Employee performance, satisfaction, growth and
motivation
System Strategic quality planning HR planning
Driver Leadership Employee characteristics
Managerial Implication
Baldrige model of HRM helps organizations in focusing their attention on attaining global
standards in quality of products and services. HR managers have to understand quality systems
and interlize the philosophy and mechanisms of Malcolm Baldrige award in order to apply the
right HR practices. Quality specialists have taken over HR function wherever human resource
professionals were not successful in applying quality reinforced HRM model. The lack of basic
HRM foundation in quality specialists led to failures in integrating Quality-HRM partnership.
Therefore, special attention must be pay to identify an HRM professional with requisites skills
who can translate Baldrige HRM Model into practice.
HRM in their book titled Managing Human Assets published in 1984. This model also know as
Soft Model of HRM/Harvard Map of HRM/Multiple Stakeholders Model, argues that human
resources policies are to be influenced by two significant considerations:
1. Situational factors. The internal and external environment factors of organizations that
include (i) labors market conditions (ii) Social values, (iii) business strategies (iv) technologies,
(v) management philosophies, and (vi) market conditions will constrain the formation of HRM
polices.
Abstract: The study is undertaken to assess the major features of the diversified human
resource management (HRM) models comprising diagnostic approach, training and
development approach and international models and focus in the practical implementation
on organizational effectiveness. The study follows mainly textual information to arrive at
specific conclusion. Of the 3 Models in HRM, the international Human Resource
Management model has the highest coverage in global perspective due to international growth
strategies, degree of decentralization, firms size and need for expatriate compensation etc.
Keywords: HRM, Training and development, and International HRM.
The Cost and Management
Vol. 33 No. 4
JulyAugust 2005, pp. 56-62
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and other feed back. Appraisal is important in the sense that unless it is proper, job
performance cant be properly diagnosed. Common appraisal methods are objective measures
of performance and behaviorally anchored rating scale. The earlier one follows actual output,
scrap rate, value of sales etc. Special performance test is made in standard conditions.
Judgmental methods follow ranking and rating techniques for measuring performance. The
behaviorally anchored rating scale (BARS) provides performance dimensions and fixes
anchors viz. behavior of each performance.
Objectives
The main objective of the study is to make a comparative analysis of the major characteristics
of the different human resource management models like diagnostic approach, training and
developments approach and international HRM models and assess their impact on
organizational effectiveness.
Methodology
The study is theoretical in nature based on extensive desk study followed by wide review of
relevant research studies done earlier and textual knowledge available in different books
and journals.
The following analyses have been done:
a) Nature of human resource management activities
b) Detailed phases of diagnostic approach of HRM comprising human resource conditions,
HR objectives, HR activities and evaluation of results.
c) Basic features of training and development approach consisting of nine major areas.
d) Fundamental characteristics of international HRM model covering six major aspects.
e) Attributes of HRM models prescribed by Morgan.
f) Factors favoring successful implementation of the different HRM models in global
perspectives.
Literature Review
Ali Ahsan published the article on Use of Markovain Assumption and Efficiency Scale in
Human Resource Valuation Model (Ahsan, 1997). The practice of giving value to Human
Resource is not new. The concept can be traced back to the early days of slavery. But with the
abolition of slavery the practice of valuing Human Resources have been discontinued.
Recently, behavioral scientist and financial specialists have questioned the accounting practice
of not including value of Human Resource. It is one of the most important resources of an
organization and the future of an organization depends to a large extent on systematic
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Models of Human Resource Management
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development of such resources. With the view in mind, many Human Resource valuation
models have developed to give value to Human Resources of an organization. The author
proposes a new Human Resource valuation model to overcome the shortcomings of the
previous models.
AFM Abdul Moyeen and Afreen Huque authored the article on Human Resource
Management Practices in Business Enterprises in Bangladesh(Moyeen and Haq, 2001). This
paper explores the human resource management practices in medium and large business
enterprises in Bangladesh. Using data from 92 organizations, this study indicates that business
enterprises adopt training programs for their employees, a performance appraisal system
and a system of rewarding good employees, a policy of job sharing as well as a health and
safety plan. The study also examines whether the presence of such practices are related to
the firms characteristics. The study finds a positive relationship between a number of HRM
practices, size of firms and union status. The findings of this study have some important
From the above literature reviewed it is clear that HRM has immense role in developing
organizational effectiveness, but no such study has yet been conducted. Keeping this in
mind the study is planned to have an in depth analysis of HRM models.
Major Characteristics
Human Resource Management is a series of decisions that affect the relationship between
employees and employers; it affects many constituencies and is intended to influence the
effectiveness of employees and employers. Organizational efficiency and equity are the major
goals of such efforts. Changing condition expectations of the society technology and
employees interest, affect the decision-making. Managing the dynamic process makes the
Human Resource decisions more important and challenging.
Diagnostic approach
Diagnostic approach to HRM have four phases like: Assess Human Resource Conditions,
Set Human Resource Objectives, Choose and Apply Human Resource Activities and
Evaluation of Results.
Human Resource conditions
Human Resource conditions comprise external conditions, Organizational conditions &
employee conditions.
External conditions
External conditions cover economic conditions, govt. regulations and union expectations.
Economic conditions are employment rates, nature of inflation affect the behavior of the
human resources showing reluctance to leave job, demand for overtime etc. Govt. regulation
like pension and benefit regulations, health and safety guidelines and immigration provisions
etc. affect the Human Resource decisions. The existence or unions prevents the flexibility in
designing Human Resource Programs. Union strategies and their negotiation have greater
impact on external conditions.
Organization Conditions
This comprises mainly the internal environment like nature of the organization, nature of
the work and employee conditions.
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Nature of the organization includes strategies and objectives, financial situation, technology
and culture etc. Financial, material and human resources are organized with strategic
directions. The work to be performed influences the skill and required training, the
compensation and rewards available and manner of job designing.
Employee Conditions
Experience, wage, performance lavels i.e. demographics are important. Younger people
consider pensions in different ways. Experienced work force prefers less turnover rates.
Human Resource Objectives
Integrating of efficiency and equity is highly relevant in this context.
Efficiency
Human Resource efficiency follows market share return on investment and quality of
public service influenced by job performance, unit labors cost, attendance, employee
separations etc.
Equity
The decisions about Human Resources involve both process and context. The process refers
to how decisions get made and includes human resource conditions, setting objectives,
choosing and applying programs and reviewing the available results. The diagnostic model
develops an interesting framework blending the content in technical knowledge in the field
with the process. The major characteristics of the model are conditions in the external
environment, the organization, the nature of the work and that of employees affect human
resource decisions and then effectiveness in achieving objectives.
Human Resource Activities
HRM activities include planning, staffing, development employee union relations,
compensation etc. Planning establishes the links between the organizations overall strategies
and its human resource strategies. Staffing activities determine the composition of an
organizations human resources. Development activities aim to help employees learn new
skills or refine existing skills. Employee relations activities promote harmonious relationships
among managers and employees.
Evaluation of Results
Actually evaluation of results determines the effects of Human Resource activities. Manager
evaluates ethically by comparing performance ratings or absenteeism rates. To evaluate
employees perceptions of equity, managers may examine responses to satisfaction.
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Nawaz
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Training and Development Approach
American Society for Training and Development prescribes a model comprising following
nine major areas of HRM. Training and development, organization and development,
organizational job design, human resource planning, selection and staffing, personnel research
and information systems, compensation benefits, employee assistance, union relations etc.
The major outputs of human resource areas are quality work life, productivity and readiness
for change. This model focuses the major activities grouped into acquisition development,
motivation and maintenance. Acquisition covers resource planning, recruiting - internal,
external and employee specialization. Development consists of employee training,
management development and career development. Motivation follows job design,
performance evaluation, rewards, job evaluation, compensation benefits and decipline.
Maintenance emphasizes safety and health, employee relations etc. The external influences
are govt. regulation labor union management practices and equal employment opportunity.
International HRM Model
Peter J. Dowling and others prescribe that International HRM refers to those activities
undertaken by an organization to utilize its human resources effectively. These activities
refer to the following aspects:
(a) HR planning
(b) Staffing
(c) Performance management
(d) Training and development
(e) Compensation and benefits
(f) Labor relations.
Morgan presents a model of international HRM having three basic activities like procurement,
allocation and utilization. These three activities are scattered over in host, home and other
countries. HRM is the interplay among these three dimensions - human resource activities,
types of employees and countries of operation. International HRM involves the same activities
as domestic HRM (e.g. procurement refers to HR planning and staffing). Domestic HRM is
involved with employees within only one national boundary. Practically the complexities of
operating in different countries and employing different national categories of workers is a
key variable that distinguishes between the two approaches.
Dowling states that complexities of International HRM are related to more HR activities, the
need for a broader perspective, more involvement in employees personal lives, change in
emphasis as the work force mix of expatriates and locals differs, risk exposure and more
impact of external influences.
Conclusion and Recommendation
HRM process is a continuous process. Due to inter relatedness of all the Human Resource
functions, more specificity is important. Right number of people insight places in right time
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made available through HRM is required to achieve the objectives. Job analysis selection
process
adapted to the organizations culture and working environment are more helpful for the
purpose, with the organizations change over time there must be good matching of individual
abilities with organizational needs for the future. Employee training and management
development are duly emphasized for the same purpose. Effective performance depends on
extrinsic term like, Job design working condition, job security and satisfactory supervision
and intrinsic factors of achievement, recognition responsibility from the work etc.
While using the different models of HRM in international prospective it is clear that the
cultural environment, the nature of the multinational industry, the extent of reliance of the
MNCs (multinational companies) on its home country, domestic market and the attitudes of
senior management play a significant role in minimizing the human resource activities
between domestic and international perspectives. A global perspective in MNCs, degree of
centralization or decentralization, limited resources, nature of operations, firms size,
professionals with international experience, need for expatriate compensation and
international growth strategies etc. have also severe impact on the successful implementation
of any of the models of HRM as detailed earlier. Practically HRM output is the central point
in selecting the feasible model applicable in the environmental context.
Nowadays in competitive global context, introduction of MBO (Management by Objective),
Management by Exception, Human Resource Development activities through proper
recruitment, selection, training and motivation would facilitate the increasing productivity
of the available human resources. All these might be facilitated through application of
different
human resource models in the context of the environmental strength, opportunity, threat
and weakness of the concerned business.