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Items Description of Module
Subject Name Human Resource Management
Paper Name International Human Resource Management
Module Title Models of International HRM
Module Id Module no.-3
Pre- Requisites Basic knowledge of Human Resource Management
Objectives To know about International Human Resource Management Models
Keywords Hard HRM, Soft HRM, Harvard model, Matching model
QUADRANT-I
1. Module 3: Models of International HRM
1. 2. Learning Outcome
2. 3. Introduction
4. Hard HRM
5. Soft HRM
6. Models of HRM
6.1. Harvard Model
6.2. Warwick Model
6.3. Contextual model
6.4. 5Ps model
6.5 Matching model
6.6. Guest model
6.7 Storey’s model
6.8. European model
6.9. US model
7. Summary
1. Module 3: Models of International HRM
2. Learning Outcome
After completing this module the students will be able to know :
Concept of Hard HRM
Concept of Soft HRM
Various IHRM models
3. Introduction
An HR model describes the HRM concept. It describes the HR Objectives, Capabilities, Processes and
Standards. It bridges gap between the HR Strategy and the Organizational Structure and process. and the
skills and competencies of HR employees.
The model helps HR function run smoothly. It also orients the employees about the HR Processes. The
employees are sure about their goals and the main drivers for their success in HR.
The HR Model thus designs the clear principle and setting of the HR Roles and Responsibilities and
assignment of the different HR Projects into different units in HR.
It is not easy to define a model, but it saves many conflicts in the future. The HR Model helps to build a
stronger and more competitive HR Function in the organization.
Human resource management (HRM) has frequently been described as a concept with two distinct forms:
soft and hard. A good number of models that have been designed for HRM . All these models fall under
two categories:
Hard HRM
Soft HRM
4. Hard HRM
Hard HRM lacks humanistic approach and has a sharp focus on financial outcomes. It does not focus on
the needs of employees. Employees are considered as any other factor of production and are primarily
viewed as cost to the company.
Under this approach, business strategy is established and resources are allocated to achieve them with
employees as one of the means. Under Hard approach focus of HRM is to identify the workforce
requirements of the organisation and they are recruited and managed accordingly.
There is one way communication which flows from top to down not the other way round. Employees are
not empowered and there is little delegation. This model assumes the there are no differences of
viewpoints between managers and employees . They are similar. The Appraisal systems also focus on
making judgments about staff. Hard HRM suits the autocratic leadership style.
5. Soft HRM
It is a humanistic approach to HRM. Under soft approach, employees are considered 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. This approach concentrate on the needs of employees
and pay proper focus on their motivation and development. Employees are assumed to be self-directed
and committed. Unlike hard approach, there is strong and regular two-way communication. Pay structure
is Competitive and rewards are based on performance. delegation of authority is here and also there is
focus on training and other development of core employees.
6. HRM models:
The various HRM models are:
6.1. The Harvard Model
The Harvard Model was postulated by Beer et al (1984) at Harvard University. This model is also called
as the map of HRM territory. It is s soft model of HRM. It stresses the ‘human’ aspect of HRM and is
more concerned with the employer–employee relationships. This model has five components. These are:
stakeholders interests, situational factors, HRM policy choices , HRM outcomes and long term
consequences.
According to Harvard model, there are various stakeholders in the organization i.e. shareholders,
management, employees, government and the community and unions having different interests. This
model relates the stakeholders interest to the organizational outcomes of individual and societal well
being. Employees are also one of the stakeholders and like any other stakeholder are equally important in
influencing the objectives of management. It also takes into account the influence of situational factors
like workforce characteristics, business strategy, labour market etc. on HRM policy choices.
Figure : Harvard Model
Source: Beer et al(1984), managing human assets, new york, Free Press.
There are four HRM policy choice areas, namely: human resource flows, reward systems, employee
influence, and works systems.
i. Human resource flows refers to the activities relating to the inflow, internal flow and outflow of
the human resources from the organisation such as recruitment, selection, training , promotion,
retirement or termination.
ii. Reward systems are the system designed to motivate the employees. These may be pay systems,
incentives etc.
iii. Employee influence incorporates the levels of authority delegated and the associated
responsibility
iv. Work systems is the design of work and alignment of people.
Each of the four policy areas contains series of tasks which managers must perform. Commitment,
competence, congruence, and cost effectiveness are the outcomes that these four HR policies need to
achieve, which will lead to individual and societal well being, increased productivity, organizational
effectiveness which will again influence shareholder interests and situational factors hence making it
a vicious cycle.
4.2 The Warwick Model:
This model was developed at university of Warwick by two researchers, Hendry and Pettigrew and has
been named as Warwick model. Warwick model has been developed from Harvard model and is
analytical approach to HRM. It explains how strategy is made in complex organisations and how it
transforms HRM practices. Warwick model centres around five elements:
Outer Context which includes macro environmental forces such as socio economic, political,
technical and competitive factors.
Inner Context or the micro environmental forces. These are culture, structure, Leadership, task
technology and business outputs. These factors are firm specific.
Business Strategy Content which include objectives, product market and strategy.
HRM Context which are role, definition, organization and Human Resource outputs.
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