Human Resource Management

Module 2
Models of HRM
2.1 Defining Characteristics of HRM Models
2 Model Types
Matching - HARD - Prescriptive - Unitarist - Fombrun (1984) Harvard - Soft - Analytical - Pluralist - Beer (1984)
1. Operational & implementation issue weighted 1. Strategic considerations
2. Prescriptive - tell mgrs "best way to do things" 2. Underlying structures and processes emphasis
3. Hard approach 3. Soft approach
4. Responsibility  4 line mgrs 4. Responsibility  4 line mgrs
5. Not far a departure from traditional PM practice 5. More departure from traditional PM practice
6. Unitarist approach-top mgmt sets strategy (only stakeholders) 6. Pluralist approach-many stakeholders
Unitarist Approach assumes only a small number of individuals or groups have a legitimate interest in the fate of the org.
Extreme Unitarist advocate only top mgmt responsible for devising strategy & its priority is to satisfy shareholders.
Pluralist Approach assumes a wide range of stakeholders who should account for the process of strategy formulation.

2.2 Matching Models

2.2.1 Fombrun, Tichy & Devanna's Model (1984) - basic proposition that HRM strategy should be driven by the
business need & business strategy.
1-way relationship = business needs determine HRM
strategy.
Political
Forces Rewards
Economic Cultural
Forces Forces
Mission Selection Performance Appraisal
&
Strategy
Development
Firm
Org.
HRM Human Resource Cycle
Structure
Fombrun, Tichy & Devanna's (1984) Strategic Model

Prescriptive - tells mgrs "how to do things"

Hard Approach - contribution max & keep costs  - Mechanistic Approach
Unitarist Approach -business strategy determines strategy of HRM
Market forces determine business strategy

Implementing HRM Strategy 4 Key Operational Systems Process Stages

1. Decide optimal competitive strategy
2. Employee performance goals
3. Employee training & development
4. Employee selection
5. Reward goals reached
1. Selection 1. Mkt orientation determine optimal
2. Appraisal competitive strategy.
3. Development 2. Employee performance goals set
4. Rewards a. select new employees
b. appraise employees/performance goals
c. base rewards on performance goals
d. correct deficiencies

Advantages Disadvantages
1. HR activities integrated in pursuit of business strategy. 1. account of employee needs
2. Links HR strategy to business strategy 2. #of stakeholders
3. No trade unions or society
4. 1way relation = Business strategyHRM Strategy

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Debora Cooper
 Human Resource Management
Module 2
Models of HRM
2.2.2 The Schuler Group
Schuler & Jackson (1987)
Performance Requirements
Strategic Objective HRM Strategy
(Employee Role Behavior)
Innovation 1. creative behavior 1.
Jobs require close group
2. Long focus interaction & coordination
3. 2. Long focus 4 performance
level operative interdependent behavior
appraisal & group achievements
3. Employees develop other job
skills
Quality Enhancement 1. Repetitive & predictable behavior 1. Fixed, explicit job descriptions
2. quality concern 2. employee decision participation
3. Moderate cooperative interdependent on work & conditions
behavior 3. Extensive, continuous training &
development
Cost 1. Repetitive, predictable behavior 1. Fixed, explicit job descriptions
2. Short focus 2. Short results orientated
3. # performance appraisals
3. training & development
Best HRM Strategy (Hendry) will depend on the orgs particular circumstances.
Technology Nature
Local & National Customers

2.2.3 Evaluation of Matching Models

Boxall's Criticisms
1. No systematic research - only field studies
2. Unitarists assumptions "done to" not "with"
3. Strategy formulation not realistic as suggested
4. Validity assumptions misplaced since criticized
5. restrictive - ignores attitudes & behavior variables
6. 2close fit of HR & Business strategiesinflexibility, inadaptability 2 change

2.3 Harvard-type Models - (Beer) has roots in OB.

Soft Approach focus on people as individuals whose talents can be nurtured & developed to the mutual benefit of society,
the org and themselves.
Pluralistic Approach - wide range of stakeholders part of strategy formulation.

2.3.1 The original Beer Model

Stakeholders Interests
1. Shareholders
2. Mgrs
3. Employee Groups
4. Government influence HRM Policy Choices (Strategy) HR Outcomes Long Term Consequences
5. Unions 1. of employee decisions influence 1. Cost effectiveness 1. Mutual commitment
6. Community 2. Reward systems 2. Performance req. met 2. " goals
3. Work systems 3. commitment 3. " respect
Situational Factors 4. Adapt 2 change easy 4. " responsibility
1. Business strategy 5. Adapt 2 opps & threats 5. satisfaction
2. Workplace nature 6. Self motivated employee 6. well being
3. Labor mkt Conclusion
7. social benefit
4. Laws 1. Business strategy role dominant
5. Social values 2. Analytical not prescriptive
6. Reward system nature 3. Closely related to performance mgmt
7. Work system type 4. pluralistic - many stakeholders
8. Employee decision influence

2
Debora Cooper
 Human Resource Management
Module 2
Models of HRM
2.3.2 The Guest Model (1994) - consideration of strategic options & prescriptive recommendations
HRM Policies HR Outcomes Org Outcomes
1. Org & job design 1. Strategic information High 1. Job performance
2. Mgmt 4 change 2. Commitment 2. Problem solving
3. Recruitment, selection, socialization 3. Flexibility, adaptability 3. Change
4. Appraisal, training & dvlpmt, rewards 4. Quality of workforce, 4. Innovation
5. Communication mgmt, product, job 5. Cost effectiveness
performance, reputation, Low 1. Turnover
customer, HR policies 2. Absences
3. Grievances
influenced by

Leadership/Culture/Strategy

2.3.3 The Pettigrew Approach (1990)-Hendry & Pettigrew were more interested in understanding of the
structures and processes that influence strategy making then in "armchair
exercise of matching strategy to HR process."
Outer Context Pluralist- many influences 2 strategy.
Socio-Ecnomic
Technical
No prescriptive element.
Politcal -Legal
Competition

Inner Context
Culture
Structure
Politics/Leadership
Task-Technology
Business Outputs

Business Strategy HRM Context

Content Role
Objectives Definition
Product-Mkts 2way relationship Organization
Strategy, Tactics HR Outputs
HRM Content
HR Flows
Work Systems
Reward Systems
Employee Relations

2.3.4 Evaluation of Harvard-type Models

Boxall's Positive Points Boxall's Criticisms

1. Many stakeholder groups influence strategy 1. realism of assumptions & practical application
2. Other factors & business strategy shape HRM strategy 2. Does commitmentperformance
3. Accepts mkt forces but not driven by. 3. commitment - how
Mgmt not mkt pawn & has choices 4. Change culture - how
4. Social influence of HRM int'l practices 5. Common interests sustainable?
Beer-USA Guest & Pettigrew - UK 6. Principle/agent problem -conflict of interests

3
Debora Cooper
 Human Resource Management
Module 2
Models of HRM
2.4 Summary
2 Model Types
Matching - HARD - Unatarist - Fombrun (1984) Harvard - Soft - Pluralist - Beer (1984)
7. Operational & implementation issue weighted 7. Strategic considerations
8. Prescriptive - tell mgrs "best way to do things" 8. Understand structures and processes emphasis
9. Hard approach 9. Soft approach
10. Responsibility  4 line mgrs 10. Responsibility  4 line mgrs
11. Not far a departure from traditional PM practice 11. More departure from traditional PM practice
12. Unitarist approach 12. Pluralist approach

HARD HRM sees people no different from other resources, whose contributions are to be maximized while costs are minimized.
Soft HRM vies that it's possible to develop HRM polices that'll benefit both the org & the employee. Emphasizes human not resource.

Political
Forces Rewards
Economic Cultural
Forces Forces
Mission Selection Performance Appraisal
&
Strategy
Development
Firm
Org.
HRM Human Resource Cycle
Structure
Fombrun, Tichy & Devanna's (1984) Strategic Model
Prescriptive - tells mgrs "how to do things"
Hard Approach - contribution max & keep costs 
Unitarist Approach -business strategy determines strategy of HRM
Implementing HRM Strategy 4 Key Operational Systems
6. Decide optimal competitive strategy 1. Selection
7. Employee performance goals 2. Appraisal
8. Employee training & development 3. Development
9. Employee selection 4. Rewards
10. Reward goals reached

Advantages Disadvantages
1. HR activities integrated in pursuit of business strategy 1. account of employee needs
2. Links HR strategy to business strategy 2. #of stakeholders
3. No trade unions or society
4. 1way relation = Business strategyHRM Strategy

Boxall's Criticisms
1. No systematic research
2. Unitarists assumptions "done to" not "with"
3. Strategy formulation not realistic as suggested
4. Validity assumptions misplaced since criticized
5. restrictive - ignores attitudes & behavior variables
6. 2close fit of HR & Business strategiesinflexibility, inadaptability 2 change

4
Debora Cooper