Human Behaviour at Work Place

Unit 4

Harvard Framework for HRM

Harvard Framework for HRM

• The Harvard framework for HRM is an HR model that takes a more holistic
approach to HR, including different levels of outcome.

• One of the most significant assignments that include the staff division in an
association is human resources management (HRM).

• An organization is just prone to accomplish its goals if their representatives are

utilized successfully.

• Simultaneously, arranging how best to utilize human resources will assist an

association with achieving its targets and objectives. Human resources
management has vital ramifications. It implies continually searching for better
methods for utilizing representatives to profit the association.
• It is based on the work of Paauwe and Richardson (1997) and creates a nuance
on the models above in regards to how HR operates.

The Harvard model for HRM is an HR strategy model comprised of five

components:

1. The model starts, on the left, with stakeholder interest. These stakeholders include
shareholders, management, employee groups, government, and more. These
interests define the model of HRM policies.

2. At the same time, situational factors influence these interests.

• Situational factors include workforce characteristics, unions, and all the other
factors that were also listed in the 8-box model (See Diagram on Slide 5).
3. Situational factors and stakeholder interest influence HRM policies.

• These include the core HR activities, like recruitment, training, and reward
systems.

4. When done well, strategic HRM policies lead to positive HRM outcomes.

• These includes retention, cost-effectiveness, commitment, and competence.

5. These positive HRM outcomes lead to long-term consequences.

• These can be individual, organizational, and societal.

• Strategic human resource management (SHRM) can be defined as a way of
deciding on the plans and intentions of an organization looking at the relationship
between employment and the following human resource management processes
and procedures within an organization – development, recruitment, training,
benefit and employee relations plans, performance management, strategies and
procedures.

• It’s an approach to human resource management that has the goal of using
people most wisely with respect to the strategic needs of the organization.

• It is strategic way of managing the organization's most valued properties: the

employees are individually and jointly contributing to the success and
achievement of the organization's objectives.

• There are several models and theories of strategic human resource management.
• Among these are best practice model and contingency model identified by Hope-
Hailey et al (1998).

• According to Michael Armstrong in his book titled ‘A handbook of Human

Resource Management Practice’.

• Best practice model of strategic human resource management otherwise known

as outcome model is a model that emphasize commitment rather than
compliance and advocates processes of culture management to achieve cultural
control of an organization. It is universalist approach.

• This model explains that all organisations will record achievements in

organisations performance provided they identify, gain commitment to and put in
place a set of human resource management practice e.g. reward practice.
• (Guest, 1997) said and I quote, ‘In this model, ‘high commitment’ aspect binds
with human capital, because it must have a very good high level of commitment,
put in place by the ‘ideal set of practices”.

• This means that the best set of human resource practices have to be put in place
for the improvement of work output and well-being of human capital, place priority
on how human capital can be motivated, and an idea to accomplish the
organization's goals

• while contingency model concentrates on the achievement of fit between

organizations / businesses and human resource strategies.

• It is a situation where definition of organizations aims, policies and strategies, lists

of activities, and breaking down of roles of the department of human resource are
updated and only if they are similar to the circumstances of the organization.
• It is essentially about the need to achieve fit between what the organization is and
wants to become (its strategy, culture, goals, technology, the people it employs
and its external environment) and what the organization does (how it is structured,
and the processes procedures, and practices it puts into effect).

• Human resource management entails developing an organization that caters for

all the activities it requires.

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