Models of HRM

Rajesh Mokale

BBA
Basics of HRM Models
• Dichotomies in American Models
• Soft—Hard
• Coined by McGregor in 1960 to characterize forms of managerial control
• Weak-Strong
• Terms soft and hard have not been used in the American literature
• The debates surrounding them have taken place exclusively in a
British context
• The emphasis is placed on the human or the resource.

Source: Catherine, T., Lynda, G., Veronica, H.-H., Patric, M., & Philip, S. (1997). Soft And Hard Models Of Human Resource Management: A Reappraisal. Journal of Management
Studies, 0022–2380(January).
Influences on the Development of HRM Models

Based on Price, Price, A. (2004). Human resource management in a business context.

Aspects of HRM Models
Hard HRM Models Soft HRM Models
The Michigan model for the hard version The Harvard model for the soft version

Emphasis of Resource generation and utility Emphasis of Human development

Stresses `the quantitative, calculative and business- Associated with Human Relations Movement
strategic aspects of managing
“headcount resource” in as “rational” a way as for any Utilization of Individual Talents
other factor of production.
Theory X Perspective – authoritarian, repressive McGregor’s Theory Y perspective – liberating and
techniques, tight control, no development developmental approach, achievement and
continuous improvement by developing enabling
environment
Closely linked to the strategic objectives of the Equated with High Commitment Workforce
organization and coherent among themselves
Goal of Competitive Advantage Goal of Flexibility and Adaptability

Source: Catherine, T., Lynda, G., Veronica, H.-H., Patric, M., & Philip, S. (1997). Soft And Hard Models Of Human Resource Management: A Reappraisal. Journal of Management
Studies, 0022–2380(January).
Matching/ Michigan Model
• Hard Model
• There should be tight fit between organisational strategy, organisational structure and Human Resource
Management
• HR systems should be designed to match organizational strategies
• Aims at developing appropriate HR systems that will describe HRM strategies to contribute to efficiency
• Business strategy must be achieved through – Minimum labor cost, structural reorganization, performance related
pays and staff reduction
• Assumptions
• Based on Product Market Logic – In order to gain high profits, labor must be cheaply obtained, used economically
and exploited fully
• Based on Chandler’s argument – structure of an organization is based on outcomes of its strategy
• Perspective of Human Resources
• Human Resources which are available must be matched with jobs in organizations
• Quantity of human resources should be calculated based on objectives enshrined in business strategy
• Human Resources are just like any other factor of Production and Should be utilized fully like other factors of
Production
• Criticism
• Preeminence of business strategy which must be achieved regardless of whether the employees able to achieve it
or not
• Unitarist, too prescriptive, Completely ignores the interest of employees
• HR – Passive, Reactive and implementationist function
Source: Devanna et al. (1984) in Fombrun et al., Strategic Human Resource Management. © 1984 John Wiley & Sons, Inc. Reproduced with permission of John Wiley & Sons, Inc
Michigan/ Matching Model

• Tight Fit between Organization

Strategy, Organization structure
and HR Strategy
• Economic, Political and Cultural
Forces act as external influences

Michigan Model (Fombrun et al., 1984)

Source: Fombrun, C.J., Tichy, N.M. and Devanna, M.A. (1984), Strategic Human Resource Management, Wiley, New York.
Harvard Model - Map of HRM Territory
• Soft Approach of HRM – Concerned with Employer-Employee Relationships, Analytical Approach of HRM
• Five Components – Stakeholder interest, Situational Factors, HRM Policy choices, HR Outcomes, Long Term
Consequences
• Stakeholders - Shareholders, management, employees, government, community, labor unions etc.
• Relates stakeholders’ interest to the organisational outcomes of individual and societal well being
• Employees are important stakeholders to influence organisational strategy
• Takes into account various Situational Factors - workforce characteristics, Business Strategy, Labor Market,
Task Technology, Laws etc.
• HRM Policy Choice Areas –
• Human Resource Flows – Recruitment, Selection, Training Promotion – Retirement, Termination
• Reward Systems motivate motivate employees through pay systems, incentives etc.
• Employee influence is managed through delegation of authority and associated responsibility
• Work systems are developed to achieve high performance of individuals through high commitment
• Outcomes achieved
• Employee Competence and Commitment, Work and strategy congruence, Cost effectiveness

Source: Beer, M, Spector, B, Lawrence, RR., Quinn Mills, D and Walton, R.E. (1984) Human Resource Management, Free Press, New York.
 Harvard Model - Map of HRM Territory

Source: Beer, M, Spector, B, Lawrence, RR., Quinn Mills, D and Walton, R.E. (1984) Human Resource Management, Free Press, New York.
Guest’s Model of HRM
• Strategic Integration
• HR Policy should be fully integrated in Business strategy
• Support from all levels of line manager
• Policy Goals
• High Commitment, High Quality, Flexibility
• Claim
• HR Managers begin with specific business strategy which results in certain HR
outcomes and in turn affect behavioral, performance and financial outcomes
• Quality of Human Resources is important to achieve strategic outcomes
• Six Dimensions - HRM Strategy, HR Policies/ Practices, HR Outcomes,
Behavioural Outcomes, Performance Outcomes, Financial Outcomes

Source: Guest, D.E. (1991), "Personnel Management: The End of Orthodoxy?" British Journal of Industrial Relations, 29 (2), 147-175
Guest’s Model of HRM
• Combines Hard and Soft Approaches to HRM
• Components that lead to organizational effectiveness – strategic integration, flexibility, high
commitment and quality
• Strategic Integration – integration of HRM strategy with the business strategy (H)
• Flexibility – Both Hard and Soft side
• (H) ability of organizations and its human resources to adapt to the changing environment and capacity
to manage innovation
• (H) Human resources are required only when there is need in production, when they are not required
they are discharged from the service
• (S) Employees should be treated as fairly as possible
• (S) Receptivity of employees to change and innovation should be taken into account
• High commitment
• Physical, mental and behavioral commitment to achieve higher organizational outcomes
• Quality – Quality of human resources determines quality of output

Source: Guest, D.E. (1991), "Personnel Management: The End of Orthodoxy?" British Journal of Industrial Relations, 29 (2), 147-175
 Guest’s Model of HRM

Source: Guest, D.E. (1991), "Personnel Management: The End of Orthodoxy?" British Journal of Industrial Relations, 29 (2), 147-175
 Storey’s Model of HRM (1992)
• Holistic approach with ideological and philosophical underpinnings
makes it much more human approach to employment management
• Four elements that distinguish HRM
• ‘HRM is seen to have long-term implications integral to the core
performance of the organizations ’
• It is ‘human capability and commitment distinguishes successful
organizations from the rest’
• Because HRM is of strategic importance, it needs to be considered in the
formulation of the corporate plan by top management
• The key levers are to be used to seek not merely compliance but
commitment’

Source: Storey, J. (1992), Developments in the Management of Human Resources, Blackwell Business
 Storey’s Model of HRM (1992)
• Storey studied a number of UK organisations in a series of case studies
• Found Four aspects important for development of Human Resources in Organization
• Beliefs and assumptions
• Human resources as most important resource and their capabilities and commitment is different than other
resources – Human resource must be valued
• Human resources treated on on basis of commitment and not compliance
• Strategic Directions
• Capabilities of HR provides competitive advantage, HRM should be taken care by top executive
• HR policies are formulated by keeping in mind competitive business environment
• Role of line managers
• Highlight micro issues important for strategy making
• To develop more motivated employees and more effective control
• To ensure local control to local managers to resolve most routine problems to basic levels
• Key levers
• Culture acts as most important lever than procedures and systems
• Cultural management brings consensus on overall beliefs, values and assumptions
• Brings flexibility and commitment

Source: Storey, J. (1992), Developments in the Management of Human Resources, Blackwell Business
Contextual Model of HRM (Warwick Model)
• Assumption
• It is not appropriate to label HRM as a single form of activity.
• Organisations may follow a number of different pathways in order to achieve same results
• Various Aspects of the Model – Outer Context, Inner Context, Business Strategy Content, HRM Context, HRM
Content
• Outer Context – macroeconomic forces
• Economic - ownership and control, organisation size and structure, organisation's growth path or stage in the life cycle and
the structure of the industry and its markets (Hendry and Pettigrew 1990 : 26).
• Technological - technology which is available and adopted - direct relation to skill
• Political-legal – National Education and Training Setup
• Internal Context – micro-environmental forces
• organisational culture, structure (positioning of HR), leadership, level of technology employed and business output
• Business Strategy Content
• Objectives, Product Market, Strategy tactics
• HRM Context
• Role Definition, Organization/ HR Outputs
• HR Content
• HR Flows, Work Systems, Reward Systems, Employee Relations
Source: Hendry, C and Pettigrew, A.M. (1992), "Patterns of Strategic Change in the Development of Human Resource Management, "British Journal of Management, 3,
137-156.
Contextual Model

Source: Hendry, C and Pettigrew, A.M. (1992), "Patterns of Strategic Change in the Development of Human Resource Management, "British Journal of Management, 3, 137-
156.
5 Ps Model
• Based on Strategic Human Resource Management
• Concern of integration and adaption
• Performance of organisation is based on performance of people
• Propositions (Schuler, 1992)
• Human resource management should be fully integrated with the strategy and strategic needs of the
firm
• Human resource policies are coherent both across policy areas and across hierarchies
• Human resource practices are adjusted, accepted, and used by line managers and employees as part of
their every day work
• The 5P’s Model defines
• Purpose as the organization’s vision, mission, and primary objectives;
• Principles are defined as action guidelines / operational protocols set to lead to achieving a purpose;
• Processes include organization structure/ architecture, systems, and methods of operation;
• People are the vital HR resource performing tasks in line with the appointed to carry out processes in
line with principles;
• Performance is a outcomes that can be measured by the appropriate standards.

Source: Schuler, R.S. (1992), "Linking the People with the Strategic Needs of the Business," Organisational Dynamics, 18-32.
Other Models
• Best practice models
• Based on Guest’s (2002) prescriptive model of HRM
• Integration of HR into the strategic planning process
• Commitment of employees to the organization and high performance working
• Flexibility in the organisational structure and the use of employees through multi-skilling
• Quality in goods and services is achieved through the employment of high caliber employees
who can offer high performance and work flexibility and are committed to the organisation.
• Contingency model (Bolman and Deal, 1994)
• The most appropriate approach can only be determined in relation to
circumstances
• The degree of ‘fit’ between HR and business strategy (External Fit)
• The degree of ‘fit’ or integration across HR policies and practices (Internal Fit)
• Important aspects - External contingency factors, Internal contingency
factors, Managerial perceptions and objectives, Organisational capability, will, and politics
Source: Martin, J. (2010). Key concepts in human resource management. Sage Publications.
Other Models
• Resource-based model
• People are just one of the resources available to an organization that need to
be harnessed into a cohesive whole in delivering the desired strategy
• Goal - the achievement of competitive advantage
• Criteria/ Characteristics of resource
• Valuable - People resource should be able to add value to the organizational processes
• Scarcity – Resource must be used with care and maximum value
• Inimitability – Competitors should not be able to copy it
• Non-substitutability – It should not be substitutable as it makes a unique contribution

Source: Martin, J. (2010). Key concepts in human resource management. Sage Publications.
HRM Models Summary
1. Harvard Model (USA)
2. Michigan Model (USA)
3. Guest’s Model (UK)
4. Storey’s Model (UK)
5. Contextual Model (UK)
6. 5 – Ps Model (UK)
7. Best Practice Model
8. Contingency Model
9. Resource Based Model