HRM Models in leadership PDF

Preview

Summary

HRM Models in leadership...

Description

The HRM Models ⇒

There are a good number of models that have been postulated by various scholars to describe the HRM concept.

⇒

However, as shall be seen these various models either fall under the soft or the hard approach of HRM.

The Harvard Model ⇒

The Harvard Model was postulated by Beer et al (1984) at Harvard University.

⇒

The authors of the model also coined it the map of HRM territory.

⇒

The Harvard model acknowledges the existence of multiple stakeholders within the organization.

⇒

These multiple stakeholders include shareholders various groups of employees, government and the community at large.

⇒

The recognition of the legitimacy of these multiple stakeholders renders this model a neo - pluralist model.

⇒

This model emphasizes more on the human/soft side of HRM.

⇒

Basically this is because this model emphasizes more on the fact that employees like any other shareholder are equally important in influencing organizational outcomes.

⇒

In fact the interest of the various groups must be fused and factored in the creation of HRM strategies and ultimately the creation of business strategies.

Stakeholder Interests

Situational Interests i) Workforce type ii) Business strategy

HR Strategy i) Employee influence ii) Human Resources flows iii) Reward system iv) Work systems

HR Outcomes i) Commitment ii) Congruence iii) Competence iv) Costs

Long-term consequences i) Organizational effectiveness ii) Individual wellbeing iii) Societal wellbeing

Source : Beer et al (1984 : 16) ⇒

A critical analysis of the model shows that it is deeply rooted in the human relations tradition.

⇒

Employee influence is recognised through people motivation and the development of an organization culture based on mutual trust and team work.

⇒

The factors above must be factored into the HR strategy which is premised on employee influences, HR flows, reward system etc.

⇒

The outcomes from such a set up are soft in nature as they include high congruence, commitment, competencies etc.

⇒

The achievement of the crucial HR outcomes has got an impact on long term consequences, increased productivity, organizational effectiveness which will in turn influence shareholder interests and situational factors hence making it a cycle.

⇒

It is thus important to note that the Harvard model is premised on the belief that it is the organization’s human resources that give competitive advantage through treating them as assets and not costs.

The Michigan/Matching Model ⇒

The Michigan model was propounded by Fombrun Tichy and Devanna (1984) at the Michigan Business School.

⇒

They also named this model a matching model of HRM.

⇒

Precisely, the matching aspect of this model demonstrates that the model is inclined towards the harder side of HRM.

⇒

This is because the matching model emphaizes more on “tight fit” between the HR strategy and the buisness strategy.

⇒

NB It demands that available human resources must be matched with jobs in the organization.

⇒

The HR strategy must be highly calculative in terms of the quantity of the human resources required to achieve the objectives enshrined in the business strategy.

⇒

Business strategy takes the central stage in this model hence human resources are taken like any other resource which must be fully utilised together with the other resoruces to achieve organizational objectives.

⇒

(Evans and Lorange, 1989) argue that the Michigan model is based on the “product market logic” which demands that to gain high profits labour must be obtained cheaply, used sparingly, developed and exploited fully.

The Matching Model of HRM Political Forces Economic Forces

Cultural Forces

Business Strategy

Organizational Structure

HR Strategy

Devanna (1984) ⇒

The point of departure in the Michigan Model is the pre-eminence and predominance of a business strategy, which must strictly be achieved by the available resources regardless of whether, they are able to do so or not.

⇒

In fact the business strategy must be achieved through minimum labour costs enhanced by structural re-organization, Performance Related Pay and staff reduction.

The Guest Model The Guest model was propounded by David Guest in 1987. ⇒

This model is a fusion of aspects that resemble both a hard and a soft approach of HRM.

⇒

⇒ 1.

Guest proposes 4 crucial components that underpin organizational effectiveness. These 4 crucial components are: Strategic Integration

⇒

This is the ability of organizations to maintain a fit between the HRM strategy and the business strategy. In other words, there must be congruence between business strategy and the HR strategy for the organization to achieve its goals.

⇒

Strategic integration shows the harder side of the Guest Model.

⇒

This is precisely because human resources are treated in a similar manner like any other resource with the prime goal of achieving business objectives.

⇒

Thus there are implications of labour exploitation.

2. Flexibility ⇒

Flexibility is basically concerned with the ability of the organization and its people to adapt to the changing business and work environment and to the capacity to manage innovation.

⇒

Flexibility can be numeric, functional, pay, distancing.

⇒

Flexibility carries both connotations of hard and soft HRM.

⇒

Hard HRM for example can be seen through numeric flexibility where employees are employed only when their production is required and when their labour is not required they are discharged.

⇒

This can be exemplified through seasoned work.

⇒

Flexibility can also show the soft side of HRM through the same example given above.

⇒

Flexibility in this case is not only concerned with the need to achieve business objectives but also the need to treat its employees as fairly as possible.

3. High Commitment ⇒

This is concerned with the need to have both behavioural commitment, which is the ability to go an extra mile, and attitudinal commitment, which is reflected through a strong identification with the organization.

4. Quality

Quality is based on the assumption that provision of high quality goods and services results from a quality way of managing people.

Organizational Effectiveness

Strategic Integration

High Commitment

Quality

Flexibility

Tutorial Using David Guest (1987)’s Model and John Storey (1989)’s model of HRM: Critically demonstrate your understanding of Hard and Soft HRM. Model by John Sorey (1989) John Storey emerged to be one of the strongest proponents of HRM as a completely different discipline from the preceding disciplines embraced by the TPM approach. ⇒

He believed that HRM is a holistic approach with a set of interrelated policies with an ideological and philosophical underpinning.

⇒

Because of these ideological and philosophical aspects, HRM does not only stand distinctively outstanding from TPM but also emerges to be a much more humane approach to employment management.

⇒

The model by John Storey is based on four aspects.

1.

Beliefs and Assumptions

⇒

The model is premised on the notion that HRM is based on a set of beliefs and assumptions, which makes it a distinctive approach.

⇒

Fundamentally it is believed that it is the human resource among all the other factors of production, which gives the difference.

⇒

Successful organizations are distinguished from the rest by the capabilities and commitment of the people who work for them.

⇒

It is therefore imperative that the human resource ought to be treated with great care and nurtured as valuable assets.

⇒

Finally it is believed that the employment relationship is based on commitment and not compliance.

2.

Strategic Qualities HRM is further distinguished by the fact that it is strategic in nature and therefore requires the attention of senior management and top executives.

⇒

The above-mentioned assumption stems from the 1st belief that the human resource is the most important source of competitive advantage.

⇒

HR Policies are too important to be a product of prescribed best professional practice only. In fact they must be sensitive to the demands of the competitive business environment, business strategy and the HR strategy.

3.

Role of Line Managers

⇒

Line managers have a very important role to play in people management.

⇒

It is clear from the HRM philosophy that people management is too important to be left to operational personnel specialists.

⇒

Fundamentally, the importance of line managers is seen through the strong link that exists between them and their respective subordinates or employees.

4.

Key Levers

1. ⇒There is a strong belief that culture management is important than managing Procedures and systems. ⇒

This is primarily important because culture management brings consensus on overall organizational values, beliefs and assumptions.

⇒

Culture management is also believed to be essential in flexibility and commitment. ii)

Integrated action on all HRM policies

iii)

Restructuring and job redesign to allow developed responsibility and empowerment.

(Storey, 2007) . The hard and soft HRM models: Storey distinguished between the ‘hard’ and ‘soft’ versions of HRM. He wrote that: ‘The hard one emphasizes the quantitative, calculative and business-strategic aspects of managing human resources in as “rational” a way as for any other economic factor. By contrast, the soft version traces its roots to the human-relations school; it emphasizes communication, motivation and leadership.’ However, it was pointed out by Keenoy that ‘hard and soft HRM are complementary rather than mutually exclusive practices’. Research in eight UK organizations by Truss indicated that the distinction between hard and soft HRM was not as precise as some commentators have implied. Their conclusions were as follows. 2. Contextual model of HRM: The contextual model of HRM emphasizes the importance of environmental factors by including variables such as the influence of social, institutional and political forces that have been underestimated in other models. The latter, at best, consider the context as a contingency variable. The contextual approach is broader, integrating the human resource management system in the environment in which it is developed. According to MartinAlcázar: ‘Context both conditions and is conditioned by the HRM strategy.’ A broader set of stakeholders is involved in the formulation and implementation of human resource strategies that is referred to by Schuler and Jackson as a ‘multiple stakeholder framework’. These stakeholders may be external as well as internal and both influence and are influenced by strategic decisions. 3. The matching model of HRM: Fombrun proposed the ‘matching model’, which indicated that HR systems and the organization structure should be managed in a way that is congruent with organizational strategy. This point was made in their classic statement that: ‘The critical management task is to align the formal structure and human resource systems so that they drive the strategic objectives of the organization’. Thus they took the first steps towards the concept of strategic HRM. 4. European model of HRM: Brewster described a European model of HRM as follows: ● environment – established legal framework; ● objectives – organizational objectives and social concern – people as a key resource; ● focus – cost/benefit ts analysis, also environment;

● relationship with employees – union and non-union; ● relationship with line managers – specialist/line liaison; ● role of HR specialist – specialist managers – ambiguity, tolerance, flexibility. The main distinction between this model and what Brewster referred to as ‘the prescribed model’ was that the latter involves deregulation (no legal framework), no trade unions and a focus on organizational objectives but not on social concern. As set out by Maybe the characteristics of the European model are: ● dialogue between social partners; ● emphasis on social responsibility; ● multicultural organizations; ● participation in decision-making; ● continuous learning. 5. The 5-p’s model of HRM: Philosophy: Expressed in statements defining business values and culture. It expresses how to treat and value people. Policies: Expressed as shared values and guidelines. Policies establish guidelines for action on people related business issues and HR programs. Programs: Articulated as human resource strategy. These coordinate efforts to facilitate change to address major people related business issues. Practices: For leadership, managerial and operational role practices motivate needed role behaviors. Processes: For the formulation and implementation of other activities these define how activities are carried out Source: http://hrmpractice.com/models-of-hrm/ Importance of HR Models

The model makes the management of HR function run smoothly. It is crucial for the employees as they can orientate in HR Processes quickly and they can easily identify the process owner in case of questions and uncertainty. The HR Model brings the improvement into the decision-making process in HR. The decision lines are clear, and managers are not asked to approve the regular requests. They act as the approvers for the exceptional cases....