Thursday, July 30, 2015

Models of Human Resource Management (Part II)

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. (See Above Figure).

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 (See Figure):

  • 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 performance and growth.

Storey Model - Hard HRM - Soft HRM (1989):


Hard HRM:

Focuses on the costs incurred by the human resources of the firm. In this approach:
  • workers primarily viewed as a cost to the company
  • Individualistic
  • rejection/marginalization of industrial relations
  • rejection of differences of viewpoints between managers and employees -  these are assumed to be similar
  • emphasis on gaining work efficiancies
  • sharp financial focus

Soft HRM:

Stresses the human aspect of the firm. Key points of this approach are:
  • Workers viewed as exploitable assets.
  • more of concern with the employee's views
  • emphasis on employee relations
  • employee involvement and commitment encouraged
  • Humanistic edge of thinking
  • development of core employees

Best Practice Model - Johnson (2000):


Johnson (2000) details," the best practice or the high performance work practices are described as Hr methods and systems that have universal, additive and positive effects on organizational performance."

the definition relates to the fact that the best practices that the organization employs, each will add to the previous, thus compounding the resulting performance of the organization. This model is based on universalism. The assumption behind this model is -  a set of practices aimed at high commitment or high performance will benefit whole organization regardless of context.

Elements of Best Practices (Pfeffer - 1998):

  • Employment security / Job security
  • Sophisticated selection / Selective thinking
  • Team Work and decentralization
  • High wages linked to organizational performance
  • Extensive training
  • Narrow status differential
  • Communication and employee involvement

Patterson's Model of HRM:


HRM practices can improve organizational performance by:
  • Increasing employee skills and abilities
  • Prompting positive attitudes and increasing motivation
  • Providing employees with extended responsibilities, so that they can make full use of their skills and abilities
Above factors provide a basis for determining 'good' or 'high' performance HRM practices.

Best Fit / Contingency Model:


Argument - "HR strategies become more efficient when it is linked to its surrounding context or environment of the business."

There are two elements in this model:
  1. External Fit - the fit is linked to operation strategy / marketing strategy etc. that is, the competitive strategy of overall business. Schuler and Jackson (1987) developed the connection between competitive advantage, employee behaviors and practices.
  2. Internal Fit - HR policies and practices must be coherent. Policies which work in opposite direction should be avoided. For example, encouraging team work but rewarding team work.

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