HRM Models

Hard & Soft HRM by Storey (1992)

Hard HR Management Soft HR Management

Emphasises full utilisation of employees in a
formal, calculating & dispassionate manner,
as similarly as other organisational
resources
Treats employees simply as a resource of
the business (like machinery & buildings)
Strong link with corporate business planning
– what resources do we need, how do we
get them and how much will they cost
Emphasises the need to develop employees’
potential & resourcefulness in order to
encourage commitment & high performance in
pursuit of shared organisational goals
Treats employees as the most important
resource in the business and a source of
competitive advantage
Employees are treated as individuals and their
needs are planned accordingly

Focus of HRM: identify workforce needs of Focus of HRM: concentrate on the needs of

the business and recruit & manage employees – their roles, rewards, motivation
accordingly (hiring, moving and firing) etc

Key features Key features

Short-term changes in employee numbers Strategic focus on longer-term workforce
(recruitment, redundancy) planning

Minimal communication, from the top down Strong and regular two-way communication

Pay – enough to recruit and retain enough
staff (e.g. minimum wage)
Little empowerment or delegation
Competitive pay structure, with suitable
performance-related rewards (e.g. profit share,
share options)
Employees are empowered and encouraged to
seek delegation and take responsibility

Appraisal systems focused on making Appraisal systems focused on identifying and

judgements (good and bad) about staff addressing  training and other employee
development needs

Taller organisational structures Flatter organisational structures

Suits autocratic leadership style Suits democratic leadership style

HR, to be effective, have to find ways to simultaneously reduce labour costs & increase
employee commitment, motivation & performance

The Michigan Matching Model by Fombrun, Tichy & Devanna (1984)

The Michigan model is also known as the 'matching model' or 'best-fit' approach to human
resource management. In essence, it requires that human resource strategies have a tight fit to
the overall strategies of the business. As such, it limits the role of HR to a reactive,
organizational function and under-emphasizes the importance of societal and other external
factors. For example, it is difficult to see how the current concern for work-life balance could be
integrated into this model.
Fombrun et al identified four common HR processes performed in every organization:
  Selection: matching people to jobs
 Appraisal of performance
 Rewards: emphasizing the real importance of pay and other forms of compensation in
achieving results
 Development of skilled individuals
These processes are linked in a human resource cycle.
The Michigan model stresses the 'resource' element of HRM, asserting that people should be
managed like any other resource –this means: obtained cheaply, used sparingly and developed
as much as possible. The model is based on the human resource cycle, and it underlines the
contribution of selection, appraisal, rewards and development to employee performance.

The Harvard Model by Beer et.al. (1984 & 1985)

Harvard Business School generated one of the most influential models of HRM. The Harvard
interpretation sees employees as resources. However, they are viewed as being fundamentally
different from other resources - they cannot be managed in the same way. The stress is on
people as human resources. The Harvard approach recognizes an element of mutuality in all
businesses, a concept with parallels in Japanese people management, as we observed earlier.
Employees are significant stakeholders in an organization. They have their own needs and
concerns along with other groups such as shareholders and customers.
The Harvard Map or model outlines four HR policy areas:
 Human resource flows - recruitment, selection, placement, promotion, appraisal and
assessment, promotion, termination, etc.
 Reward systems - pay systems, motivation, etc.
 Employee influence - delegated levels of authority, responsibility, power
 Work systems - definition/design of work and alignment of people.
Which in turn lead to the 'four C's' or HR policies that have to be achieved:
 Commitment
 Congruence
 Competence
 Cost effectiveness
Rutgers Model of HRM by Schuler & Jackson (1987)

At Rutgers University, USA, Schuler and Jackson developed a model based on 'needed role
behaviour' to support different types of organizational strategy. 12 employee behaviours were
identified, and divided into groups according to whether they support a cost-reduction strategy
or an innovation strategy.
Once desirable employee behaviours are picked out, the next step is to establish HRM
procedures to support those behaviours. The HR manager defines their HR policy according to
the five practice menus proposed by the model, which includes planning, staffing, appraising,
compensating, and training and development. Each item is selected on the basis of its fitting
with the organization strategy. Strategy therefore has to be clearly outspoken before choices
on HR policy can be implemented. The concept of behavioural consistency lies at the centre of
the Rutgers model, that is, the reconciliation of HR policy with strategy.
The Warwick’s Model of Strategic Change & HRM by Hendry & Pettigrew (1990)

Ownership control
Organisation size & structure
Growth path & life cycle
Industry structure

This model was developed at Warwick Business School, England, by Hendry, Pettigrew and
Sparrow. It takes the Harvard model forward by placing human resource policies in the broader
organizational context in which HRM operates. This model comprises four contexts: outer,
inner, business strategy, and HRM.
The Warwick model takes cognisance of business strategy and HR practices (as in 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 human resource management adapts to
changes in the context. Obviously, those organizations achieving an alignment between the
external and internal contexts will achieve performance and growth.
The Bath People & Performance Model by Purcell et.al. (2003)

The Bath People and Performance model was developed from case study research at the
University of Bath by Purcell et al. It tries to explain how HR policies relate to performance.
Based on this model, HR policy can only impact positively on performance if the following
factors are formed (13):

 AMO factors - people must have the ability, motivation and opportunity (AMO) to
achieve performance.
 Implementation - line managers must implement HR policy, communication
encouragement, respect and trust.
 Response - individuals must respond to policies, AMO factors and line manager's
behaviour with presence of commitment and job satisfaction.
 Behaviour - if all other factors operate well, this will lead employees to assert selectable
behaviour to improve their performance beyond minimum requirements.
Model Strengths & Limitations
Employment Cycle (HRM Process)