USA MODEL OF HRM Vs

EUROPEAN MODEL OF HRM

Prepared by,
Group 1
Group 9

CONTENTS
Introduction
Guest

to UK Model

model of HRM

Introduction

to USA Model

The

Fombrun, Tichy and Devanna Model of HRM

The

Harvard Model of HRM

Comparison

of Harvard and Guest model of HRM

INTRODUCTION TO USA MODEL

According

to Senge 1996, HRM professionals

are expected to be technical, cognitive, flexible

and communicative so as to achieve a learning
organization which is efficient and innovative.

The Fombrun, Tichy and Devanna Model of HRM

Interrelatedness

and the coherence of human resource

management activities.
Four

key constituent components,

Selection

Appraisal

Development

Rewards

Aim

to increase organizational performance

Human
Resources
Development

Selection

Performance

Appraisal

Rewards

Strength and Weakness

Strength:

pedagogical framework

coherence of internal HRM policies and practices to

the organizations external business strategy.

-

interactions among the factors

Weakness:

apparent prescriptive nature

ignores different stakeholder interests, situational

factors and the notion of managements strategic choice

The Harvard Model

Beer,

Spector, Lawrence, Quin Mills and

Walton, 1984
Strategic

map

4Cs

- Employee commitment (wood, 1995) not

control
- Congruent, competent and cost effective.

 Harvard

Model proposes, that diverse personnel and

labor relation activities can be dealt with under four

human resources activities,
- Employee influence
(responsibility, authority, power)
- Reward system
(Extrinsic and Intrinsic rewards)
- Work system
- Human resource flow
(Decision making on recruitment, selection, promotion
and termination of employees)

Cont
The

analytical framework of the Harvard model

consists of six basic components

1. Situational factors
2. Stakeholders interests
3. Human Resource Management policy choice
4. HRM outcome
5. Long-term consequences
6. A feedback loop through which the outputs flow.

 The

situational factors:
-

workforce

characteristics,

management

philosophy, labor market, regulations, societal values

and patterns of unionization, and suggests a merging of
both product market and sociocultural logics.
The

stakeholder interests recognize the importance of

trade-offs.
Human

resource management policy choices emphasize

that managements decisions.

 The

human resource outcomes are high employee

commitment to organizational goals and high individual

performance leading to cost effective products or
services.
The

long term consequences distinguish between three

levels: individual, organizational and societal.

Feedback

loop - two-way relationship

situational factors influence HRM policy and

choices

GUEST HRM MODEL FOR UK

Developed

by David Guest in 1987.

Designing

policies and strategies,

- Strategic integration
- High employee commitment
- High

workforce

adaptability
- High quality workforce

flexibility

and

 Coherent

strategies of HRM policies is fully

integrated with business strategy and with levels

of line management.
4

HRM outcomes will provide,

- High job performance

- Stronger problem solving
- Improved cost effectiveness
- Employee turnover, absence, grievance.
- Greater strategic consistent

COMPARISON OF HARVARD AND

GUEST MODEL

THANK YOU