Human Resource ManagementModule 2

Models of HRM

2.1 Defining Characteristics of HRM Models2 Model Types

Matching - HARD - Prescriptive - Unitarist - Fombrun (1984) Harvard - Soft - Analytical - Pluralist - Beer (1984)1. Operational & implementation issue weighted2. Prescriptive - tell mgrs "best way to do things"3. Hard approach4. Responsibility 4 line mgrs5. Not far a departure from traditional PM practice6. Unitarist approach-top mgmt sets strategy (only stakeholders)

1. Strategic considerations2. Underlying structures and processes emphasis3. Soft approach4. Responsibility 4 line mgrs5. More departure from traditional PM practice6. 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.

Prescriptive - tells mgrs "how to do things"Hard Approach - contribution max & keep costs - Mechanistic Approach

Unitarist Approach -business strategy determines strategy of HRMMarket forces determine business strategy

Implementing HRM Strategy 4 Key Operational Systems Process Stages1. Decide optimal competitive strategy 1. Selection 1. Mkt orientation determine optimal 2. Employee performance goals 2. Appraisal competitive strategy.3. Employee training & development 3. Development 2. Employee performance goals set4. Employee selection 4. Rewards a. select new employees5. Reward goals reached b. appraise employees/performance goals

c. base rewards on performance goalsd. correct deficiencies

Advantages Disadvantages1. HR activities integrated in pursuit of business strategy. 1. account of employee needs2. Links HR strategy to business strategy 2. #of stakeholders

3. No trade unions or society4. 1way relation = Business strategyHRM Strategy

1Debora Cooper

Human Resource ManagementModule 2

Models of HRM

2.2.2 The Schuler Group

Schuler & Jackson (1987)

Strategic ObjectivePerformance Requirements(Employee Role Behavior)

HRM Strategy

Innovation 1. creative behavior2. Long focus3. level operative interdependent behavior

1. Jobs require close group interaction & coordination

2. Long focus 4 performance appraisal & group achievements

3. Employees develop other job skills

Quality Enhancement 1. Repetitive & predictable behavior2. quality concern3. Moderate cooperative interdependent

behavior

1. Fixed, explicit job descriptions2. employee decision participation

on work & conditions3. Extensive, continuous training &

developmentCost 1. Repetitive, predictable behavior

2. Short focus3. #

1. Fixed, explicit job descriptions2. Short results orientated

performance appraisals3. 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 Criticisms1. No systematic research - only field studies2. Unitarists assumptions "done to" not "with"3. Strategy formulation not realistic as suggested4. Validity assumptions misplaced since criticized5. restrictive - ignores attitudes & behavior variables6. 2close fit of HR & Business strategiesinflexibility, 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

2Debora Cooper

Human Resource ManagementModule 2

Models of HRM

2.3.2 The Guest Model (1994) - consideration of strategic options & prescriptive recommendations

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."

2.3.4 Evaluation of Harvard-type Models

Boxall's Positive Points Boxall's Criticisms1. Many stakeholder groups influence strategy 1. realism of assumptions & practical application2. Other factors & business strategy shape HRM strategy 2. Does commitmentperformance3. Accepts mkt forces but not driven by. 3. commitment - how

Mgmt not mkt pawn & has choices 4. Change culture - how4. Social influence of HRM int'l practices 5. Common interests sustainable?

Beer-USA Guest & Pettigrew - UK 6. Principle/agent problem -conflict of interests

3Debora Cooper

Human Resource ManagementModule 2

Models of HRM

2.4 Summary2 Model Types

Matching - HARD - Unatarist - Fombrun (1984) Harvard - Soft - Pluralist - Beer (1984)7. Operational & implementation issue weighted8. Prescriptive - tell mgrs "best way to do things"9. Hard approach10. Responsibility 4 line mgrs11. Not far a departure from traditional PM practice12. Unitarist approach

7. Strategic considerations8. Understand structures and processes emphasis9. Soft approach10. Responsibility 4 line mgrs11. More departure from traditional PM practice12. 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.

Prescriptive - tells mgrs "how to do things"Hard Approach - contribution max & keep costs

Unitarist Approach -business strategy determines strategy of HRMImplementing HRM Strategy 4 Key Operational Systems6. Decide optimal competitive strategy 1. Selection7. Employee performance goals 2. Appraisal8. Employee training & development 3. Development9. Employee selection 4. Rewards10. Reward goals reached

Advantages Disadvantages1. HR activities integrated in pursuit of business strategy 1. account of employee needs2. Links HR strategy to business strategy 2. #of stakeholders

3. No trade unions or society4. 1way relation = Business strategyHRM Strategy

Boxall's Criticisms1. No systematic research2. Unitarists assumptions "done to" not "with"3. Strategy formulation not realistic as suggested4. Validity assumptions misplaced since criticized5. restrictive - ignores attitudes & behavior variables6. 2close fit of HR & Business strategiesinflexibility, inadaptability 2 change

4Debora Cooper