Models of Human Resource Management

MODELS OF HUMAN RESOURCE MANGEMENT Understanding models in human resource management (HRM) is essential for any human resource practitioner for three reasons. Firstly, it provides a macro perspective of HRM practice in overall organizational set up. Secondly, the unity and diversity of these models serve as vital inputs in drafting tailor made HRM model for organizations. Thirdly, these models offer answers to quite a few dilemmas that practitioners encounter in their mission to pursue an organizationally dovetailed and business aligned human resource function. With these objectives in view, this chapter deals with 30 different models in HRM practice. Each of these models illustrates HRM strategy from a particular perspective, it focus, and the principle elements, the overall philosophy and ultimate objective. These 30 models together enabled HRM, practice that include soft and hard variants of HRM, quality enabled HRM, models drawn from religious scriptures, strategy, structure, process aligned HRM, oriented, profit motivated and sectorial based HRM, thus giving a comprehensive and holistic approach to the subject. BALDRIDGE MODEL OF HRM Malcolm Baldrige National Quality Award is regarded as the worlds highest quality award that is given annually to organizations is recognition of its quality standards. HRM practices take a central place in quality movement of organizations. A maximum of 1000 points is allocated to different dimension of quality management for assessment under Baldrige award. Out of these, HRM practices get 150 points. Further, these practices like employee development, involvement and empowerment has potential to influence the other dimensions of the award like customer focus, leadership, and quality planning. Keeping in view its importance, Dr Christopher Hart, president of TQM Group-USA and Prof Leonard Schlesinger of Harvard Business School advocated for application of Baldrige framework to Hr in their paper titled Total Quality Management and the Human Resource Professional: Applying the Baldrige Framework to Human Resources published in HRM in 1991. This orientation may help companies to not only strengthen their quality efforts but also give a purposeful shape to HR function. In quality modeling, HR function needs to develop a new vision for itself as a customer focused service provider, in other words, setting 100 per cent customer satisfaction as HRMs ultimate goal which means, defining who the customers are and determining their precise needs Baldrige award emphasizes the critical role of five HR practices in this endeavor. These are (i) HR planning, (ii) HR education and training, (iii) HR performance and recognition, (iv) HR

involvement, and (v) HR well-being and moral. Again, each of these practices are broken into a number of activities. For example, HR planning practice is sub-divided into redefining job descriptions to increase clarity of job, steps to enrich jobs, lines of authority, organizational structure, etc. Similarly, education and training encompasses activities like leadership training, training in quality, communication, job specific employee training, remedial training for career growth and so on. The quality modeled HRM activities like leadership training in quality, communication, mentoring, job specific employee training for career growth and so on. The quality modeled HRM activities would progress in tandem with quality efforts as illustrated in Table 1.1. TABLE 1.1 Variables Baldrige HRM Outcome Customer focus and satisfaction Employee performance, satisfaction, growth and motivation System Strategic quality planning HR planning Driver Leadership Employee characteristics Managerial Implication Baldrige model of HRM helps organizations in focusing their attention on attaining global standards in quality of products and services. HR managers have to understand quality systems and interlize the philosophy and mechanisms of Malcolm Baldrige award in order to apply the right HR practices. Quality specialists have taken over HR function wherever human resource professionals were not successful in applying quality reinforced HRM model. The lack of basic HRM foundation in quality specialists led to failures in integrating Quality-HRM partnership. Therefore, special attention must be pay to identify an HRM professional with requisites skills who can translate Baldrige HRM Model into practice.

HARVARD MODEL OF HRM The type of HRM policies and practices an organization prefers should be dependent upon its organizational vision, mission, strategy, goals, and objectives. In quite a few cases, such HR practices shall also be devised and adopted in tune with external environment of organizations. In other words, HR policies and practices are subject to be influenced by internal and external environment of organizations. Harvard model of HRM propounded by Michael Beer, Richard

Walton, Quinn Mills, P. Lawrence and Bert Spector highlighted this influence of environment on HRM in their book titled Managing Human Assets published in 1984. This model also know as Soft Model of HRM/Harvard Map of HRM/Multiple Stakeholders Model, argues that human resources policies are to be influenced by two significant considerations: 1. Situational factors. The internal and external environment factors of organizations that include (i) labors market conditions (ii) Social values, (iii) business strategies (iv) technologies, (v) management philosophies, and (vi) market conditions will constrain the formation of HRM polices.

HUMAN RESOURCE MODEL EFFECT ON ORGANIZATION

Abstract: The study is undertaken to assess the major features of the diversified human resource management (HRM) models comprising diagnostic approach, training and development approach and international models and focus in the practical implementation on organizational effectiveness. The study follows mainly textual information to arrive at specific conclusion. Of the 3 Models in HRM, the international Human Resource Management model has the highest coverage in global perspective due to international growth strategies, degree of decentralization, firms size and need for expatriate compensation etc. Keywords: HRM, Training and development, and International HRM. The Cost and Management Vol. 33 No. 4 JulyAugust 2005, pp. 56-62 56 Page 2 and other feed back. Appraisal is important in the sense that unless it is proper, job performance cant be properly diagnosed. Common appraisal methods are objective measures of performance and behaviorally anchored rating scale. The earlier one follows actual output, scrap rate, value of sales etc. Special performance test is made in standard conditions. Judgmental methods follow ranking and rating techniques for measuring performance. The behaviorally anchored rating scale (BARS) provides performance dimensions and fixes anchors viz. behavior of each performance. Objectives The main objective of the study is to make a comparative analysis of the major characteristics of the different human resource management models like diagnostic approach, training and developments approach and international HRM models and assess their impact on organizational effectiveness.

Methodology The study is theoretical in nature based on extensive desk study followed by wide review of relevant research studies done earlier and textual knowledge available in different books and journals. The following analyses have been done: a) Nature of human resource management activities b) Detailed phases of diagnostic approach of HRM comprising human resource conditions, HR objectives, HR activities and evaluation of results. c) Basic features of training and development approach consisting of nine major areas. d) Fundamental characteristics of international HRM model covering six major aspects. e) Attributes of HRM models prescribed by Morgan. f) Factors favoring successful implementation of the different HRM models in global perspectives. Literature Review Ali Ahsan published the article on Use of Markovain Assumption and Efficiency Scale in Human Resource Valuation Model (Ahsan, 1997). The practice of giving value to Human Resource is not new. The concept can be traced back to the early days of slavery. But with the abolition of slavery the practice of valuing Human Resources have been discontinued. Recently, behavioral scientist and financial specialists have questioned the accounting practice of not including value of Human Resource. It is one of the most important resources of an organization and the future of an organization depends to a large extent on systematic 57 The Cost and Management, JulyAugust, 2005 Models of Human Resource Management Page 3 development of such resources. With the view in mind, many Human Resource valuation models have developed to give value to Human Resources of an organization. The author proposes a new Human Resource valuation model to overcome the shortcomings of the previous models. AFM Abdul Moyeen and Afreen Huque authored the article on Human Resource Management Practices in Business Enterprises in Bangladesh(Moyeen and Haq, 2001). This paper explores the human resource management practices in medium and large business enterprises in Bangladesh. Using data from 92 organizations, this study indicates that business enterprises adopt training programs for their employees, a performance appraisal system and a system of rewarding good employees, a policy of job sharing as well as a health and safety plan. The study also examines whether the presence of such practices are related to the firms characteristics. The study finds a positive relationship between a number of HRM

practices, size of firms and union status. The findings of this study have some important implications for business managers, the educators and researchers of HRM. Mohammad Mohiuddin and Monowar Hossain Mahmud made an important study entitled Personnel to Human Resource Management: A Developmental Perspective Analysis (Mohiuddin and Mahmud 2001). This paper reveals that human resource management is sometime thought of as an extended form of personnel management. This is not true. The present paper is an attempt to illustrate the development of HRM as a new dimension as well as a paradigm shift in people management in the organizational context. It has focused on the relevant literature and the dimensional difference among various approaches. This paper will help us to understand the nature and characteristics of the new approach in dealing with human elements of the organization. It will also be useful in designing the competent Human Resource strategies to combat the present day complexities of Human Resource Management and to gain competitive advantages in the world of technological uniformity. Sajid A. Kuraishi made a study on Human Resource Management: Emerging Trends and Policies (Kuraishi, 1990). In his article, he said that innovations in the management of human resources have been taking place over the past decade. These innovations and changes are part of a general shift that will have a great impact on the role and skills and capabilities of the human resources manager.. Yesterdays personnel department has become todays Human Resources Management. HRM now treats seriously the issues of how to attract, develop and motivate people and how to utilize them effectively. Md. Hasibur Rashid and Md. Kismatul Ahsan, in his paper on Privacy in Personnel Management in America: An Ethical Consideration (Rashid and Ahsan, 1997). This paper argues that ethics can play vital role in reducing the attitudinal differences between the personnel manager and employees on the issue of maintaining privacy of employee information. The importance of ethics in personnel management has received inadequate attention in the previous research. The need for employee information for decision making and its disclosures within and outside the organization are examined. On the basis of ethics, 58 The Cost and Management, JulyAugust, 2005 Nawaz Page 4 personnel managers behavior is classified as ethical and unethical. The privacy act of USA, technological development, and absence of appropriate legal framework has put the personnel manager in a paradoxical situation. On the basis of the secondary data and its analysis, this paper concludes that personnel manager should give importance to the ethical side of disclosure of employee information whether that is within or outside the organization and try to avoid unethical side of disclosure of personal information. Possible future researches

on privacy in personnel management are suggested. From the above literature reviewed it is clear that HRM has immense role in developing organizational effectiveness, but no such study has yet been conducted. Keeping this in mind the study is planned to have an in depth analysis of HRM models. Major Characteristics Human Resource Management is a series of decisions that affect the relationship between employees and employers; it affects many constituencies and is intended to influence the effectiveness of employees and employers. Organizational efficiency and equity are the major goals of such efforts. Changing condition expectations of the society technology and employees interest, affect the decision-making. Managing the dynamic process makes the Human Resource decisions more important and challenging. Diagnostic approach Diagnostic approach to HRM have four phases like: Assess Human Resource Conditions, Set Human Resource Objectives, Choose and Apply Human Resource Activities and Evaluation of Results. Human Resource conditions Human Resource conditions comprise external conditions, Organizational conditions & employee conditions. External conditions External conditions cover economic conditions, govt. regulations and union expectations. Economic conditions are employment rates, nature of inflation affect the behavior of the human resources showing reluctance to leave job, demand for overtime etc. Govt. regulation like pension and benefit regulations, health and safety guidelines and immigration provisions etc. affect the Human Resource decisions. The existence or unions prevents the flexibility in designing Human Resource Programs. Union strategies and their negotiation have greater impact on external conditions. Organization Conditions This comprises mainly the internal environment like nature of the organization, nature of the work and employee conditions. 59 The Cost and Management, JulyAugust, 2005 Models of Human Resource Management Page 5 Nature of the organization includes strategies and objectives, financial situation, technology and culture etc. Financial, material and human resources are organized with strategic directions. The work to be performed influences the skill and required training, the compensation and rewards available and manner of job designing.

Employee Conditions Experience, wage, performance lavels i.e. demographics are important. Younger people consider pensions in different ways. Experienced work force prefers less turnover rates. Human Resource Objectives Integrating of efficiency and equity is highly relevant in this context. Efficiency Human Resource efficiency follows market share return on investment and quality of public service influenced by job performance, unit labors cost, attendance, employee separations etc. Equity The decisions about Human Resources involve both process and context. The process refers to how decisions get made and includes human resource conditions, setting objectives, choosing and applying programs and reviewing the available results. The diagnostic model develops an interesting framework blending the content in technical knowledge in the field with the process. The major characteristics of the model are conditions in the external environment, the organization, the nature of the work and that of employees affect human resource decisions and then effectiveness in achieving objectives. Human Resource Activities HRM activities include planning, staffing, development employee union relations, compensation etc. Planning establishes the links between the organizations overall strategies and its human resource strategies. Staffing activities determine the composition of an organizations human resources. Development activities aim to help employees learn new skills or refine existing skills. Employee relations activities promote harmonious relationships among managers and employees. Evaluation of Results Actually evaluation of results determines the effects of Human Resource activities. Manager evaluates ethically by comparing performance ratings or absenteeism rates. To evaluate employees perceptions of equity, managers may examine responses to satisfaction. 60 The Cost and Management, JulyAugust, 2005 Nawaz Page 6 Training and Development Approach American Society for Training and Development prescribes a model comprising following nine major areas of HRM. Training and development, organization and development, organizational job design, human resource planning, selection and staffing, personnel research and information systems, compensation benefits, employee assistance, union relations etc.

The major outputs of human resource areas are quality work life, productivity and readiness for change. This model focuses the major activities grouped into acquisition development, motivation and maintenance. Acquisition covers resource planning, recruiting - internal, external and employee specialization. Development consists of employee training, management development and career development. Motivation follows job design, performance evaluation, rewards, job evaluation, compensation benefits and decipline. Maintenance emphasizes safety and health, employee relations etc. The external influences are govt. regulation labor union management practices and equal employment opportunity. International HRM Model Peter J. Dowling and others prescribe that International HRM refers to those activities undertaken by an organization to utilize its human resources effectively. These activities refer to the following aspects: (a) HR planning (b) Staffing (c) Performance management (d) Training and development (e) Compensation and benefits (f) Labor relations. Morgan presents a model of international HRM having three basic activities like procurement, allocation and utilization. These three activities are scattered over in host, home and other countries. HRM is the interplay among these three dimensions - human resource activities, types of employees and countries of operation. International HRM involves the same activities as domestic HRM (e.g. procurement refers to HR planning and staffing). Domestic HRM is involved with employees within only one national boundary. Practically the complexities of operating in different countries and employing different national categories of workers is a key variable that distinguishes between the two approaches. Dowling states that complexities of International HRM are related to more HR activities, the need for a broader perspective, more involvement in employees personal lives, change in emphasis as the work force mix of expatriates and locals differs, risk exposure and more impact of external influences. Conclusion and Recommendation HRM process is a continuous process. Due to inter relatedness of all the Human Resource functions, more specificity is important. Right number of people insight places in right time 61 The Cost and Management, JulyAugust, 2005 Models of Human Resource Management Page 7

made available through HRM is required to achieve the objectives. Job analysis selection process adapted to the organizations culture and working environment are more helpful for the purpose, with the organizations change over time there must be good matching of individual abilities with organizational needs for the future. Employee training and management development are duly emphasized for the same purpose. Effective performance depends on extrinsic term like, Job design working condition, job security and satisfactory supervision and intrinsic factors of achievement, recognition responsibility from the work etc. While using the different models of HRM in international prospective it is clear that the cultural environment, the nature of the multinational industry, the extent of reliance of the MNCs (multinational companies) on its home country, domestic market and the attitudes of senior management play a significant role in minimizing the human resource activities between domestic and international perspectives. A global perspective in MNCs, degree of centralization or decentralization, limited resources, nature of operations, firms size, professionals with international experience, need for expatriate compensation and international growth strategies etc. have also severe impact on the successful implementation of any of the models of HRM as detailed earlier. Practically HRM output is the central point in selecting the feasible model applicable in the environmental context. Nowadays in competitive global context, introduction of MBO (Management by Objective), Management by Exception, Human Resource Development activities through proper recruitment, selection, training and motivation would facilitate the increasing productivity of the available human resources. All these might be facilitated through application of different human resource models in the context of the environmental strength, opportunity, threat and weakness of the concerned business.