NATIONAL UNIVERSITY OF SCIENCES AND

TECHNOLOGY
School of Electrical Engineering and Computer Science

Human Resource Management (HRM-442)

Assignment # 2

SUBMITTED BY:
Name: Abdullah Ashfaq
Registration No: 129399
Section: BEE-8B

Date of Submission: 27th March, 2020

Table of Contents

Topic Page No.

1.0 Models of Human Resource Management.........................................................................1
1.1 The Matching Model (Fombrun et al., 1984)................................................................1
1.1.1 Descriptive Theory (Beer et. al , 1984)...................................................................1
1.2 Harvard Analytical Framework (Beer et al., 1984)........................................................2
1.2.1 Analytic theory of HRM..........................................................................................3
1.3 The Guest Model (Guest, 1997).....................................................................................3
1.4 The Warwick Model (Hendry & Pettigrew, 1992).........................................................4
1.5 Standard Casual Model (Boselie, 2005).........................................................................5
1.6 Eight-box model (Boselie, 2005)...................................................................................6
1.7 Human Resource Value chain model (Paauwe & Richardson, 1997)............................7
1.8 Hard Model and Theory X (McGregor, 1960)...............................................................7
1.9 Soft Model and Theory Y (McGregor, 1960)................................................................8
2.0 Theories of Human Resource Management.....................................................................10
2.1 The Classical School/Scientific Management..............................................................10
2.1.1 Taylorism (Taylor, 1911)........................................................................................10
2.1.2 Fayol’s Administrative theory (Fayol, 1949)........................................................10
2.2 Bureaucracy (Weber, 1946)..........................................................................................10
2.3 The Human Relations School.......................................................................................11
2.3.1 Maslow’s theory (Maslow, 1954)..........................................................................11
2.4 The Behavioral Science School....................................................................................12
2.4.1 Maturity-Immaturity Theory (Argyris, 1957)........................................................12
2.4.2 Motivation-hygiene Theory (Herzberg et al., 1959)..............................................12
2.5 The System Theory (Bertalanffy, 1968).......................................................................13
1.0 Models of Human Resource Management
1.1 The Matching Model (Fombrun et al., 1984)
This model of HRM was developed by in Michigan School by Tichy, Fombrun and
Devanna. Matching model guarantees that following five major functions must be applied
effectively to achieve organizational objectives.

(Fombrun et al., 1984)

Following are the features of this models.

 The whole of HRM is a cyclical process. Each function depends on the others. Value
of each function adds to the achievement of organizational objectives.
 All functions of HRM are used in a comprehensive manner, suggesting that it is based
on descriptive theory of HRM.
 Appropriate techniques must be utilized to assess the work and contribution of
properly selected human resource. Some kind of reward has to be given on the basis
of results of performance appraisals.

1.1.1 Descriptive Theory (Beer et. al , 1984)

According to this theory, whole HRM process is considered as a single unit. It

describes the subject of HRM inclusively. The matching model is an example of descriptive
theory.

Page | 1
1.2 Harvard Analytical Framework (Beer et al., 1984)
HRM initially was seen in USA in the 1950s, but it was applied in a study programme
introduced by Harvard Business School in the 1980. Later theories of HRM were found using
some element of this framework. This framework cumulates stakeholder interests, policy,
vision, objectives, etc.

(Beer et al., 1984)

This model was found by Beer and his colleagues in the 1980s. They believed:

 Top managers have greater responsibility of developing the HRM policies and
practices in an organization.
 Vision and philosophy should be ingrained in the organization and the human
component is to be considered as strategic resource.
 More responsibility should be accepted by the line managers for ensuring the
alignment of competitive strategy and adhere to HRM policies

Page | 2
  Human resource should have a mission to fulfill organizational objectives in a
coherent manner. Hence, a team approach is needed.
 Harvard framework is based on the analytical theory of HRM.

The main qualities of this model are:

 Takes stakeholder perspective into consideration.

 Mutual responsibility, cooperation, respect
 View HRM as employee influence rather than a supervisory style.

1.2.1 Analytic theory of HRM

According to this theory, fundamental elements instilled in the HRM functions and
their utility and inter-relationship are vital to achieve HRM objectives.

1.3 The Guest Model (Guest, 1997)

This model emphasizes on the following points:

 HR manager comes up with specific strategies

and practices which produce result when
executed.
 HR outcomes include rewards which include
behavioral, financial and performance related.
 Financial result depends on employee
performance which depend on employee
behavior. Behavioral results are produced
through employee commitment, quality and
flexibility which depends on the HR practices.

Page | 3
(Guest, 1997)
1.4 The Warwick Model (Hendry & Pettigrew, 1992)
This model was developed by center for Strategy and Change at the Warwick University. It
was derived from the Harvard model. It emphasizes analytical resource management and role
of HR functions on HR strategy. It revolves around following five elements.

(Hendry & Pettigrew, 1992)

This model takes into consideration:

 Business strategy and HR practices (like Guest)

 External and internal context in which these activities take place (unlike Guest)
 Process through which these activities take place
 Interaction between content and context

Page | 4
Following is an analysis of the Warwick model

Strengths
 Interconnection of inner and outer
context
 Adapts to changes in context
 Organizational learning
 Emergent business strategy
Weaknesses
 Performance not developed as a
result of link between HR practices
and business outputs
 Emergent strategy can be anarchical
(Bratton & Gold, 2008)

1.5 Standard Casual Model (Boselie, 2005)

This Model is the most well-known model of HR. It was derived from the earlier
models. It shows the HR process as a chain.

According to this model

 HR will only be effective if HR and business strategies are aligned. This is inline with
the best-fit theory.
 HR practices follow HR strategies which lead to outcomes.
 HRM outcomes lead to improved internal performance for e.g. productivity, quality,
etc.
 Internal performance leads to financial performance for e.g. profit, return-on-
investment, etc.
 The reverse causality of the model shows that better financial performance leads to
more investment in HR practices and HR outcomes because good performance leads
to employee engagement.

Page | 5
This model shows how HR strategy can be formulated and how it will impact the financial
outcomes and internal performance of the business.

1.6 Eight-box model (Boselie, 2005)

This model shows different internal and external factors that influence the effectiveness of
HR.

 External context: If there is a shortage of certain skill in the market, this will influence
how we do our recruiting and hiring. Legislation impacts our HR.
 Intended Human Resource Practices: It is the starting point. Our intention affects the
overall process.
 Actual Human Resource Practices: Execution depends on cooperation between HR
and the manager. The practice can be different than the intention.
 Perceived Human Resource Practices: The manner in which the employee perceives
the HR. The perception can be different than the actual practices.
 Human Resource Outcomes: The perceived human resource practices lead to certain
HR outcomes. Which lead to HR goals and ultimate business goals.

1.7 Human Resource Value chain model (Paauwe & Richardson, 1997)
The HR value chain is one of the best-known models of HR.

Page | 6
According to this model, everything in HR is divided into two categories:

1. HRM Activities: These are the day to day activities which include recruitment,
training, compensation and retention. These are measured using efficiency metrics.
We will focus on achieving maximum efficiency in these activities. This will reduce
our costs.

2. HRM Outcomes: These are the goals we hope to achieve. All our activites are geared
towards achievement of these goals. The outcomes include employee retention and
satisfaction.

The goal is to get the best person in the right position. When the HRM activities are
performed effectively i.e. when we recruit the right people, train them the right way, motivate
them and retain the best, the performance of our company increases.

1.8 Hard Model and Theory X (McGregor, 1960)

The hard model of HRM is based on the following ideas:

 Tight strategic control

 Economic model according to McGregor’s Theory X

Page | 7
 This model belongs to the traditional perspective of HRM. It aims to control the
workplace environment through stringent rules and regulations, orders, supervision and
authority.

Legge observes that this approach looks at human resource like any other resource and
expects maximum output at a stable rate. (Legge, 1989)

Hard model sees human resource as an economic resource or a commodity or like some
new machinery. It is expected that high performance can be extracted through rules and
supervision. It is based on the ideology of the control theory of HRM.

Douglas McGregor formulated Theory X and Theory Y for human work motivation. Hard
model is related to the Theory X which comprises of following important points:

 Based on assumptions regarding workers that they have little ambition, avoid
responsibility and think about themselves only.
 Management believes that employee work is based on self-interest.
 Typical worker operates more efficiently under strict supervision.
 The individual should receive direct reward or direct reprimand.
 There are two opposing approaches to its implementation i.e. hard and soft
approach, both of which are too extreme.
 Hard approach demands intimidation and punishment.
 Soft approach demands leniency and freedom.

This theory and model can benefit workplace that utilizes manual labour.

1.9 Soft Model and Theory Y (McGregor, 1960)

The soft model of HRM is based on the following ideas:

 Managing human resource through commitment

 Managing human resource through cohesion (Theory Y)

It aims to develop a work environment that motivates the employees to work effectively.
According to this model people are inspired by work. The three key features of this model
are:

1. Flexibility

Page | 8
 2. Teambuilding, empowerment and involvement
3. Culture management

The underlying theory behind this model is the commitment theory. This model is also
based on the Theory Y of McGregor. According to this theory,

 More emphasis should be put on the higher-level needs of the employees such as
esteem.
 Employees are assumed to be internally motivated.
 Employees are seen as valuable assets.
 Managers relate to the employees on a more personal level.

Although this theory promotes creativity, it has drawbacks. There can be problems in
terms of consistency and uniformity. If the workplace lacks rules, the quality standards might
suffer.

A comparison of the two models is given below:

Hard Model (Control) Soft model (Commitment)

 Traditional view of management
 More control and supervision
 Commitment is not seen
 Related to bureaucratic model
 More hierarchical structure
 Teamwork is hardly seen
 Employees are treated as workers
 Skills and competencies are not
highly valued
 Culture management is not expected
 Employee empowerment
involvement hardly available
 More traditional
Achieving objectives of the organization is
the sole aim
 Modem view of management
 Self-guided employees
 High commitment of employees
 Related to Human relations
 Flatter structure
 Teamwork is fully used
 They are treated as valued asset
 They are highly valued and
recognized and recognized
 Culture management is practiced
and  Employee empowerment and
involvement are are fully used
 More strategic
 Attempts to achieve the objectives of
the organization and those objectives
of its employees

Page | 9
2.0 Theories of Human Resource Management

2.1 The Classical School/Scientific Management

2.1.1 Taylorism (Taylor, 1911)

In early 1900s, production process became complicated and factories became larger than
ever before. Workers were seen as motivated by money and they are willing to work to get
money by most efficient ways.

Frederick W. Taylor, father of scientific management, stated that “the task of factory
management was to determine the best way for the workers to do the job, provide proper
tools and training and to provide incentives for good performance … ”(Taylor, 1911).

This concept involves getting the technical conditions right. It sought to find the one best
way to do a job by breaking it apart into simple, standardized and repetitive tasks that even an
unskilled worker could do. Managers were tasked with division of task and workers were
‘hands’.

2.1.2 Fayol’s Administrative theory (Fayol, 1949)

This was an advancement over the previous scientific theory. These principles are
implemented even in modern day businesses. His principles of management included:

 Division of work
 Authority with managers
 Equal opportunities
 Fair treatment
 Job Security
 Remuneration
 Unity of direction
 Teamwork and mutual cooperation

Page | 10
2.2 Bureaucracy (Weber, 1946)
This theory was developed by Weber. The term of bureaucracy is associated with
organization form. Organizational structures are very formal. Characteristics to this theory
are as follows:

 More and strict rules and regulations

 Hierarchical structures
 Competency development
 Record and statistic maintenance
 Qualification based appointments
 Separate management staff
 Specialization
 Democracy
 Rationality

Weber’s ideas on the HRM are so profound that they impact even the modern businesses. He
was the first person to use competency development.

2.3 The Human Relations School

It is believed that the human relations are more vital in strict and regulations. This school
believes that man is not a machine or an animal but something higher and virtuous. The
proponents of the theory believe that attention and relationship from the employer matter
more than formal supervisory and controlling environment.

2.3.1 Maslow’s theory (Maslow, 1954)

Maslow’s hierarchical needs form a landmark in the history of HRM and motivation theories.

Page | 11
Important characteristics of this theory are

 Human needs vary between people, places.

 Human needs have to be satisfied step by step.
 Physiological needs belong to the worker category.
 Esteem and self-actualization needs are pursued if the other human needs are
satisfied.

Maslow later formed a Theory Z which focused on self-transcendence as human. He believed

that the ideal organization would use motivations of the pyramid of needs as well as self-
transcendence.

2.4 The Behavioral Science School

This school believes that behavior of people working in an organization is most
influential and better output can be obtained through behavior changes and improvement.
This is the best motivational factor for maximum output. Some theories from this school
include

2.4.1 Maturity-Immaturity Theory (Argyris, 1957)

This theory assumes nurturing attitude of an organization leads to descriptive and

multidimensional growth process of an individual. According to this theory, six basic changes
take place in maturing process:

1. Become more positivist

2. Become more independent

Page | 12
 3. Behave in many ways
4. Become responsible, proactive and leaders.
5. Develop far-sighted vision.
6. Becomes leader of human resource

2.4.2 Motivation-hygiene Theory (Herzberg et al., 1959)

The main theme of this theory is job-satisfaction. Herzberg stated that the hygiene
factors were demotivators. These include policy, administration, supervision, status, security,
work conditions. The motivating factors include achievement, recognition, responsibility and
advancement.

2.5 The System Theory (Bertalanffy, 1968)

This theory states that a system consists of dependent parts or subsystems. Parts of a
system are individuals, formal organization, informal organization, status and roles and the
physical setting. These parts are inter-related and any change in one part affects the other
part.

Open system is the one which interacts with other systems. Closed systems are the
ones which do not interact with external environment.

More results can be achieved if the connection between sub-systems is strengthened.

This theory basically deals with relationships and functional aspects of reality of a system.

References

1. Argyris. (1957). Personality and organization.

2. Beer, Spector, Lawrence, & Mills. (1984). Harvard Model.

3. Bertalanffy, V. (1968). General system theory.

4. Boselie. (2005). Strategic human resource management: A Balanced Approach.

5. Bratton, J., & Gold, J. (2008). Human Resource Management.

6. Fayol. (1949). General and industrial management.

Page | 13
7. Fombrun, Tichy, & Devanna. (1984). Strategic human resource management.

8. Guest, D. (1997). Human resource management and performances: A review and

research agenda.

9. Hendry, & Pettigrew. (1992). Warwick Model.

10. Herzberg, Mausner, & Synderman. (1959). The motivation to work.

11. Lapiņa, & Inga. (2014). Human Resource Management Models: Aspects of

Knowledge Management and Corporate Social Responsibility.

12. Legge. (1989). Human resource management: A critical analysis.

13. Maslow. (1954). Motivation and personality.

14. McGregor, D. (1960). The Human Side of Enterprise.

15. Paauwe, & Richardson. (1997).

16. Taylor, F. (1911). The Principles of Scientific Management.

17. Weber. (1946).

Page | 14