1. EVOLUTION OF HR MODELS Akash Rawat (08) Akshita Tomar (11)
Anupam Verma (28)
Arjun Monga (30)
Deepika Rao (49)
Dennis Joseph Koshy (50)

2. Introduction:
HRM- Human resource management is to make the most productive use of human resource to the greatest benefits of the organization and individuals.
Personal Management-  It is obtaining, using and maintaining a satisfied workforce. It is a significant part of management concerned with employees at work and with their relationship within the organization.
Strategic HRM- A human resource system that is tailored to the demand of the business strategy.

3. Evolution of Strategic HRMPM
HRM
Early 1970’s
SHRM
1980 onwards

4. Difference:

5. Strategic human resource management and traditional HR functions differ in several ways(adapted from Mellow 2003)
Traditional HRM
SHRM
Responsibility for HR programmes
Staff personnel in the HR department
Line manager, all managers responsible for people are HR managers
Focus of activities
Employees relations,motivation,productivity,compliance with laws
Partnerships with internal and external customers
Role of HR
Reactive and transactional
Proactive and transformational, change leader
Initiative for change
Slow,piecemeal,fragmented,not integrated with larger issues
Fast,flexible,systematic,
change initiatives implemented in concert with other HR systems
by Prof. Mary Bodra

6. Traditional HRM SHRM Time horizon Short term
Consider various time frames as necessary (short,medium,or long)
Control
Bureaucratic control through rules ,procedures and policies
Organic control through flexibility as few restrictions on employee behavior as possible
Job design
Focus on scientific management principles-division of labour,independence and specialization
Broad job design,flexibility,teams and groups and cross -training
Importance investments
Capital ,products, technology and finance
People and their knowledge, skills and abilities
Accountability
Cost centre
Investment centre
by Prof. Mary Bodra

7. Hard HRM v/s Soft HRM
Hard HRM- The 'hard' approach rooted in the manpower planning approach is concerned with aligning human resource strategy with business strategy
Soft HRM- The 'soft' approach is rooted in the human relations school, with concern for workers' outcomes and encourages commitment to the organisation by focussing on workers' concerns.

8. Hard HRM Soft HRM Philosophy
Employees are a resource like any other resource available to the business
Sees employees as important as any other resource available to mangers.
Time Scale
HRM seen as a short term policy: employees are hired and fired as necessary.
Takes a long term view of using the workforce as efficiently as possible to achieve long term corporate objective.
Key Features
Employees are paid as little as possible.
Employees have limited control over their working life.
Communication is mainly downward in direction.
Judgmental appraisal is used.
Managers consult regularly and fully with the employees.
Mangers often give control of their working life to employees through delegation, empowerment and delaying.
Emphasizes on training and development.
Development appraisal given.
Likely Leadership Style
My way or the highway
Do as I say ethos
Instruction from the top down.
Laid back approach, assumes each employee can manage themselves.
Autonomous workers
Motivational Techniques used
Mainly motivated by Pay, with limited used of delegation and team working.
Extensive techniques to give employees more power Delegation, Empowerment.

9. UK Based
HRM MODELS
US Based
Others

10. Harvard Model
Harvard Model of HRM was propounded by Michael Beer, Richard Walton, Quinn Mills, P. Lawrence and Bert Spector.
It was first published in 1984 in the book titled “Managing Human Assets”.
This model is also known by many names.
Soft model of HRM
Harvard map of HRM
Multiples stakeholders model

11. Major Considerations
Model argues that Human Resource Policies are influenced by two major considerations:
Situational Factors
Labor market conditions, social values
Business strategies, technologies
Management philosophies and market conditions.
Stakeholders’ Interest
Management Employees
Unions
Government agencies

13. HRM policy choices HR Flows
Recruitment, selection, appraisal, termination etc.
Reward systems
Pay systems, non-monetary recognition schemes
Employee influence
Clarification of responsibility, hierarchy, etc
Work systems
Definition of work and alignment of people.

14. HR outcomes The HR practices are centered on 4 C’s Commitment
Enhance employee performance and loyalty
Enhance individual self-respect and worth
Competence
Cost effectiveness
HR policies must be evaluated on basis of wages, benefits, strikes etc.
Congruence

15. Long term consequences
Long-term consequences are evaluated at three levels:
Individual
Economic, Physical or psychological benefits
Organizational
Long-term results
Efficiency
Societal
Societal costs of layoffs or strikes.

16. Managerial implications
Three major insights:
HRM policies should be defined keeping in view the environmental factors and stakeholders’ concerns.
HRM policies should have a goal to achieve the 4 C’s.
HRM based on the 4 C’s will result in employee and organizational effectiveness.

17. THE MICHIGAN MODEL
The Michigan Model was developed in 1984 by Michigan Business School.
Fombrun, Tichy and Devanna were the proponents of this model.
It is also known as the ‘Matching Model' or ‘Best-Fit' approach to human resource management.
The Michigan model focuses on hard HRM.
The ‘hard’ model of HRM emphasises that employees should be treated as a means of achieving the organisation’s goals. This means that employees are a business resource and successful organisations are those that best deploy their human resources.

18. As compared to the Harvard model, the Michigan model has a harder, less humanistic approach, holding that employees are resources in the same way as any other business resource.
They must be obtained as cheaply as possible, used sparingly, and developed and exploited as much as possible.

19. Assumptions of Michigan Model
Managing people will vary from organizations to organizations and is dependent on organizational context.
Unitarism – the assumption that conflict or differing views cannot exist in the workplace because everyone (managers and employees) are working to achieve the same goal.
Unitarism assumes that everyone in an organization is a member of a team with a common purpose

20. Political Forces Economic Forces Cultural Forces Mission and Strategy
FIRM
Economic
Forces
Cultural
Forces
Mission and
Strategy
Management decides the mission and strategy, it designs the organisational structure to meet the strategy and mission, and integrates and organises HRM to fit in with the structure and to fulfil the mission and strategy. The mission, strategy, organisational structure and human resource management cannot operate in isolation. They also need to respond to the external forces of politics, economics and culture. Once these have been taken into account, managers can begin to design the human resource system.
Organization
Structure
HRM

21. Advantages Disadvantages
Attachment to market performance and organizational growth.
Led to cost minimization.
Disadvantages
Minimal HRM planning to ensure the current and future employment requirements of the organization.
Group diversity and intra-group conflict will disintegrate this model.
ADV Led to cost minimization as employees were regarded as any other resources to be obtained cheaply.
DISADV HRM planning minimal as focus was on business not on human resources.
2.Group diversity and intra-group conflict will disintegrate this model leading to organizational performance failure.

22. Managerial Implication
This model has been lauded for its practical approach.
It is different from other employee relations oriented HRM models, which stress on the commitment and relationship factors rather than on business results.
This is also the most popular among practioneers, and many organizations have adopted it in practice.

23. Competitive Advantage Model
Professor Jay Barney – Ohio State University
Professor Patrick Wright – Cornell University
Framework of VRIO
Value
Rarity
Imitability
Organization

24. Elements of the Model Sustainable Competitive Advantage comes from:
firm-specific more than general skills
teams more than from individuals
HRM systems more than a single system

25. Critical Elements in shaping HR system
Value of people in the firm and their roles in competitive advantage
Economic consequences of the HR practices in a firm
Comparative attributes of HR and practices in a firm with its competitors
Role of the HR function in building organizational capability for the future.

26. Managerial Implications
Nurturing organization specific skills by building HR competencies.
Infusing teamwork
Implementing an integrated HR system
Managers must acquire knowledge in the four areas.

27. Guest Model
Reflects view that a core set of integrated HRM practices can achieve superior individual and organizational performance.
HRM differs from personnel management.
GUEST has taken the Harvard Model and developed it further by defining 4 policy goals:
Strategic Integration
High Commitment
High Quality
High Flexibility

28. David Guest's (1997) model of HRM has 6 dimensions of analysis:
HRM strategy
HRM practices
HRM outcomes
Behaviour outcomes
Performance outcomes
Financial outcomes

30. Model perspective in Nature in the sense that HRM is different from personnel management
Idealistic in its approach.
This UK model is unitarist (tying employee behaviour and commitment into the goals of strategic management) and lukewarm on the value of trade unions.

31. Managerial Implications:
He believed that this model leads to:
High job performance
Stronger problem solving
Improved cost effectiveness.
Reducing employee turnover

32. Storey Model
Demonstrates the differences between the ‘personnel and industrials’ and the HRM paradigm.
Characterizes HRM as ‘an amalgam of description, prescription, and logical deduction’.

33. Storey proposed that HRM can be understood in four different ways:
Just another word for personnel management
A more integrated use of personnel management policies & practices
Business oriented approach to the management of labour
The levers of HRM are pulled in integration with one another, so that it is in line with the business strategy.

34. Differences according to Storey
HRM more strongly emphasis on the development of the management team.
Strategic integration of business management and people management.
The management of organizational culture.

37. The Ten Commandments Model of HRM

38. Thou shall have not other gods than me.
Thou shall not make unto thee any idol.
Thou shall not take the name of Lord thou God in vain
Centrality of authority and leadership.
Employees should be loyal to the organization.
Employees should be respectful to the organization

39. Remember the Sabbath to keep it holy.
Honor thy father and mother.
Thou shalt not kill.
Leisure activity should be encouraged.
Employees should respect the management
Employees should not resort to violence at any cost

40. Thou shalt not commit adultery.
Thou shalt not steal.
Thou shalt not bear false witness.
Thou shalt not covet.
Should not disturb work group norms.
Should not abuse organizational resources.
Should not provide false information
Should not layoff employees just for the sake of it.

41. Managerial Implications
The ultimate philosophy of any HR strategy being- morality, honesty, sincerity & Commitment.
The central objective of this model to transmit the central message of HRM in a manner the employees respect.