Models of HRM
Models of HRM
Models of HRM
TECHNOLOGY
School of Electrical Engineering and Computer Science
Assignment # 2
SUBMITTED BY:
Name: Abdullah Ashfaq
Registration No: 129399
Section: BEE-8B
The whole of HRM is a cyclical process. Each function depends on the others. Value
of each function adds to the achievement of organizational objectives.
All functions of HRM are used in a comprehensive manner, suggesting that it is based
on descriptive theory of HRM.
Appropriate techniques must be utilized to assess the work and contribution of
properly selected human resource. Some kind of reward has to be given on the basis
of results of performance appraisals.
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1.2 Harvard Analytical Framework (Beer et al., 1984)
HRM initially was seen in USA in the 1950s, but it was applied in a study programme
introduced by Harvard Business School in the 1980. Later theories of HRM were found using
some element of this framework. This framework cumulates stakeholder interests, policy,
vision, objectives, etc.
This model was found by Beer and his colleagues in the 1980s. They believed:
Top managers have greater responsibility of developing the HRM policies and
practices in an organization.
Vision and philosophy should be ingrained in the organization and the human
component is to be considered as strategic resource.
More responsibility should be accepted by the line managers for ensuring the
alignment of competitive strategy and adhere to HRM policies
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Human resource should have a mission to fulfill organizational objectives in a
coherent manner. Hence, a team approach is needed.
Harvard framework is based on the analytical theory of HRM.
According to this theory, fundamental elements instilled in the HRM functions and
their utility and inter-relationship are vital to achieve HRM objectives.
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(Guest, 1997)
1.4 The Warwick Model (Hendry & Pettigrew, 1992)
This model was developed by center for Strategy and Change at the Warwick University. It
was derived from the Harvard model. It emphasizes analytical resource management and role
of HR functions on HR strategy. It revolves around following five elements.
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Following is an analysis of the Warwick model
Strengths Weaknesses
Interconnection of inner and outer Performance not developed as a
context result of link between HR practices
and business outputs
Adapts to changes in context Emergent strategy can be anarchical
(Bratton & Gold, 2008)
Organizational learning
Emergent business strategy
HR will only be effective if HR and business strategies are aligned. This is inline with
the best-fit theory.
HR practices follow HR strategies which lead to outcomes.
HRM outcomes lead to improved internal performance for e.g. productivity, quality,
etc.
Internal performance leads to financial performance for e.g. profit, return-on-
investment, etc.
The reverse causality of the model shows that better financial performance leads to
more investment in HR practices and HR outcomes because good performance leads
to employee engagement.
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This model shows how HR strategy can be formulated and how it will impact the financial
outcomes and internal performance of the business.
External context: If there is a shortage of certain skill in the market, this will influence
how we do our recruiting and hiring. Legislation impacts our HR.
Intended Human Resource Practices: It is the starting point. Our intention affects the
overall process.
Actual Human Resource Practices: Execution depends on cooperation between HR
and the manager. The practice can be different than the intention.
Perceived Human Resource Practices: The manner in which the employee perceives
the HR. The perception can be different than the actual practices.
Human Resource Outcomes: The perceived human resource practices lead to certain
HR outcomes. Which lead to HR goals and ultimate business goals.
1.7 Human Resource Value chain model (Paauwe & Richardson, 1997)
The HR value chain is one of the best-known models of HR.
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According to this model, everything in HR is divided into two categories:
1. HRM Activities: These are the day to day activities which include recruitment,
training, compensation and retention. These are measured using efficiency metrics.
We will focus on achieving maximum efficiency in these activities. This will reduce
our costs.
2. HRM Outcomes: These are the goals we hope to achieve. All our activites are geared
towards achievement of these goals. The outcomes include employee retention and
satisfaction.
The goal is to get the best person in the right position. When the HRM activities are
performed effectively i.e. when we recruit the right people, train them the right way, motivate
them and retain the best, the performance of our company increases.
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This model belongs to the traditional perspective of HRM. It aims to control the
workplace environment through stringent rules and regulations, orders, supervision and
authority.
Legge observes that this approach looks at human resource like any other resource and
expects maximum output at a stable rate. (Legge, 1989)
Hard model sees human resource as an economic resource or a commodity or like some
new machinery. It is expected that high performance can be extracted through rules and
supervision. It is based on the ideology of the control theory of HRM.
Douglas McGregor formulated Theory X and Theory Y for human work motivation. Hard
model is related to the Theory X which comprises of following important points:
Based on assumptions regarding workers that they have little ambition, avoid
responsibility and think about themselves only.
Management believes that employee work is based on self-interest.
Typical worker operates more efficiently under strict supervision.
The individual should receive direct reward or direct reprimand.
There are two opposing approaches to its implementation i.e. hard and soft
approach, both of which are too extreme.
Hard approach demands intimidation and punishment.
Soft approach demands leniency and freedom.
This theory and model can benefit workplace that utilizes manual labour.
It aims to develop a work environment that motivates the employees to work effectively.
According to this model people are inspired by work. The three key features of this model
are:
1. Flexibility
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2. Teambuilding, empowerment and involvement
3. Culture management
The underlying theory behind this model is the commitment theory. This model is also
based on the Theory Y of McGregor. According to this theory,
More emphasis should be put on the higher-level needs of the employees such as
esteem.
Employees are assumed to be internally motivated.
Employees are seen as valuable assets.
Managers relate to the employees on a more personal level.
Although this theory promotes creativity, it has drawbacks. There can be problems in
terms of consistency and uniformity. If the workplace lacks rules, the quality standards might
suffer.
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2.0 Theories of Human Resource Management
In early 1900s, production process became complicated and factories became larger than
ever before. Workers were seen as motivated by money and they are willing to work to get
money by most efficient ways.
Frederick W. Taylor, father of scientific management, stated that “the task of factory
management was to determine the best way for the workers to do the job, provide proper
tools and training and to provide incentives for good performance … ”(Taylor, 1911).
This concept involves getting the technical conditions right. It sought to find the one best
way to do a job by breaking it apart into simple, standardized and repetitive tasks that even an
unskilled worker could do. Managers were tasked with division of task and workers were
‘hands’.
This was an advancement over the previous scientific theory. These principles are
implemented even in modern day businesses. His principles of management included:
Division of work
Authority with managers
Equal opportunities
Fair treatment
Job Security
Remuneration
Unity of direction
Teamwork and mutual cooperation
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2.2 Bureaucracy (Weber, 1946)
This theory was developed by Weber. The term of bureaucracy is associated with
organization form. Organizational structures are very formal. Characteristics to this theory
are as follows:
Weber’s ideas on the HRM are so profound that they impact even the modern businesses. He
was the first person to use competency development.
Maslow’s hierarchical needs form a landmark in the history of HRM and motivation theories.
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Important characteristics of this theory are
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3. Behave in many ways
4. Become responsible, proactive and leaders.
5. Develop far-sighted vision.
6. Becomes leader of human resource
The main theme of this theory is job-satisfaction. Herzberg stated that the hygiene
factors were demotivators. These include policy, administration, supervision, status, security,
work conditions. The motivating factors include achievement, recognition, responsibility and
advancement.
Open system is the one which interacts with other systems. Closed systems are the
ones which do not interact with external environment.
References
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7. Fombrun, Tichy, & Devanna. (1984). Strategic human resource management.
research agenda.
11. Lapiņa, & Inga. (2014). Human Resource Management Models: Aspects of
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