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HRM Models for Organizational Success

The document discusses various Human Resource Management (HRM) models, including the Matching Model, Harvard Model, Guest Model, and Warwick Model, each emphasizing different aspects of HR practices and their relationship to organizational effectiveness. It highlights the importance of understanding internal and external influences on HR functions and the need for alignment between HR strategies and organizational goals. Additionally, it outlines key components and outcomes associated with each model, emphasizing the significance of stakeholder interests and situational factors in shaping HRM policies.

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0% found this document useful (0 votes)
191 views25 pages

HRM Models for Organizational Success

The document discusses various Human Resource Management (HRM) models, including the Matching Model, Harvard Model, Guest Model, and Warwick Model, each emphasizing different aspects of HR practices and their relationship to organizational effectiveness. It highlights the importance of understanding internal and external influences on HR functions and the need for alignment between HR strategies and organizational goals. Additionally, it outlines key components and outcomes associated with each model, emphasizing the significance of stakeholder interests and situational factors in shaping HRM policies.

Uploaded by

NITIN Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

A model of a system or process is

a theoretical description that


can help you understand how the system or process
works, or how it might work.
 The Human Resource Management model contain all
human resource activities. When these activities are
discharged effectively, they will result in a competent
and willing workforce who will help realize
organizational goals.
 There is another variable in HR models - environment.
It may be stated that the Human Resource function
does not operate in vacuum. It is influenced by several
internal and external forces like economic,
technological, political, legal, organizational and
professional conditions.
 They provide an analytical framework for studying HRM (
for example, situational factors, stakeholders, strategic
choice levels, competence).
 They legitimize certain HRM practices; a key issue here
being 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 HRM that establishes
variables and relationship to be researched.
 They serve as a heuristic device - something to help us
discover and understand the world of explaining the nature
and significance of key HR practices.
Matching Model of Fombrun,
Tichy & Devanna:
 This model held that HR system and the
organizational structure should be managed in a way that is
congruent with organizational strategy.
 Being the first model it emphasizes just four functions and their
interrelatedness. The four functions are: Selection, appraisal,
development and rewards. These four constituent components
of HRM and are expected to contribute to organizational
effectiveness.
 This model is simple that serves a heuristic framework for
explaining the nature and significance of the key HR activities.
The model also emphasize interrelationship among four
activities and their collective impact on organizational
effectiveness. The disadvantage of this model is incomplete as it
focuses on only four functions of HRM and ignores all
environmental and contingency factors that impact functions.
The 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 and long term consequences.
 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

 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.
The Guest Model:
 It was developed by David Guest in 1997 and claims to
be much superior to other models. 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 and financial related
outcomes.
 The model emphasizes the logical sequence of six
components i.e. HR strategy, HR practices, HR
outcomes, Behavioral outcomes, Performance
outcomes and Financial outcomes.
 Looking inversely, financial results depend on
employee performance, which in turn is the result of
action oriented employee behaviors. Behavioral
outcome are the result of employee commitment,
quality and flexibility, which in turn are impacted by
Hr practices.
 HR practices need to be in turn with HR strategies
which are invariably aligned with organizational
strategies.
The Warwick Model:
 This model was developed by two researchers, Hendry
and Pettigrew of university of Warwick (hence the
name Warwick model). Like other models, the
Warwick proposition centres around five elements:
 Outer Context (macro environmental forces)
 Inner Context (firm specific or micro environmental
forces)
 Business Strategy Content
 HRM Context
 HRM Content
 This model takes cognizance of business strategy and
HR practices (as the Guest Model), the external and
internal context (unlike the Guest Model), in which
these activities take place, and the process by which
such changes take place, including interactions
between changes in both context and content.
 The strength of the model is that it identifies and
classifies important environmental influences on
HRM. It maps the connection between the external
and environmental factors and explores how HRM
adapts to changes in the context. Obviously, those
organisations achieving an alignment between the
external and internal contexts will achieve high
performance and growth.

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