Models of Strategic HRM

Four major models have been identified for human resource management.

  1. The Fombrun   Model
  2. The Harvard Model
  3. The Guest  Model  and
  4. The Warwick  Model

There Purpose of different Models:

  • They serve as a heuristic device-something to help us discover and understand the world for explaining the nature and significance of key HR practices.
  • They legitimize certain HRM practices; a key issue here is the distinctiveness of HRM practices: “It is not the presence of selection or training but a distinctive approach to selection or training that matters”.
  • They provide an analytical framework for studying Human resource management.
  • They provide a characterization of human resource management that establishes variables and relationships to be researched.
  1. The Fombrun Model
This model held that HR system and the organizational structure should be managed in a way that is congruent with organizational strategy. Main focus was on the four functions of HRM i.e. selection, appraisal, development and rewards and their inter relatedness.
This is the first and very simple model that serves as a heuristic framework for explaining the nature and significance of the key HR activities. But it is incomplete as it focuses only on four functions and ignores all environmental and contingency factors that impact HR functions.
The Fombrun model is incomplete as it focuses on only four functions of HRM and ignores all environmental and contingency factors that impact HR functions.

  1. The Harvard Model

The Harvard model claims to be comprehensive in as much as it seeks to comprise six critical components of HRM. The dimensions included in the model are stakeholders, interests, situational factors, HRM policy choices, HR outcomes, long-term consequences, and a feedback loop through. The outputs flow directly into the organization and the stakeholders.

The harvard model claims to be comprehensive in as much as it seeks to comprise six critical components of HRM. The dimensions included in the model are: stakeholders interests, situational factors, HRM policy choices, HR outcomes and long term consequences.
  • The Stakeholders interests recognize the importance of ‘trade offs’ between the interests of the owner and those of employees. Trade offs also exists among other interest groups. But this is the challenge of HR manager, who needs to balance the interests of all stakeholders.
  • The Situational Factors influence management’s choice of HR strategy. the contingent factors included in the model include work force characteristics, management philosophy, labour market, task, technology and laws and social values.
  • HRM Policy Choices emphasize the management’s decisions and actions in terms of HRM can be fully appreciated only if it is recognised that they result from an interaction between constraints and choices. This model outlines four HR Policy areas:
    • Employee Influence: Delegated levels of authority, responsibility, power etc.
    • HR Flows: Recruitment, selection, promotion, appraisal, termination etc.
    • Reward System: Pay system, motivation etc.
    • Work System: Design of work and alignment of people
  • These HRM policy choices lead to 4 Cs of HR Policy Outcomes, that have to be achieved:
    • Commitment
    • Congruence
    • Competence
    • Cost Effectiveness

topic 5.2

  1. The Guest Model

This  model  was developed   by David Guest in 1997. 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.

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.

topic 5.3

  1. The Warwick Model

This model was developed by Hendry and Pettigrew of university of Warwick (hence the name Warwick model). Like other models, the Warwick proposition centres around five elements:
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.

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.

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