Michigan Model According to this model, HRM practices are interrelated and directed towards organizational performance. It also identifies the existence of a human resource cycle with inherent HRM practices carried out in all organizations. Unlike the Harvard Model, the Michigan Model lends more weight to control than influence in managing human resources. Put another way, it does not consider the distinct nature of human resources as compared to the other organizational resources. One of the first explicit statements of the HRM concept was made by Devanna et al., (1984). The Michigan model: focuses on hard HRM. It holds that people should be managed like any other resources According to this model, selection, appraisal, development and rewards were …show more content…
This is supported by Williams (2004) that eight out of ten high commitment practices examined such as training, team working, reduced status, communication and involving employees in decision making had significant effects on worker attitudes based on the logic of normative theories of HRM. According to Chandler and McEvoy (2000) , one of the lingering questions in HRM research is whether or not there is a single set of policies or practices that represents a ‘universally superior approach’ to managing people . Theories on best practices or high commitment theories suggest that universally, certain HRM practices, either separately or in combination are associated with improved organizational performance. Researchers have also found that those well-paid, well-motivated workers, working in an atmosphere of mutuality and trust, generate higher productivity gains and lower unit costs (Boxall, 1996; Lowe and Oliver, 1991; Pfeffer,
The purpose of this reflective paper is to show my understanding along with what I have learned about HRM (human resources management) and the different way HRM impacts the success behind every business, along with the rules and regulations that go with it. Over the last five weeks I have learned quite a bit about HRM and will reflect on that throughout this paper. “Human resource management is the managing of human skills and talents to make sure they are used effectively and in alignment with an organizations goals.” (Youssef, 2012). I will be including the things I learned throughout the last five weeks in this
Human Resource Management (HRM) are activities managers perform to plan for attracting, develop, and retain a productive workforce (Kinicki & Williams, 2016). The role of human resource management is to prepare, develop, and administer policies and program designed to make expeditious use of an organization human resources. Part of control which is concerned with the people at work and with their relationship within an enterprise. HRM have their hands full; they have to face employees daily with a complaint, write-ups and sadly terminating of the worker. All areas of HRM such as, staffing, orientation, training, development, pay wages benefits are all significant parts that are dealt with daily. Human resource management presents itself as
Human resources management was defined as ‘a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations’ by Boxall and Purcell (2003). Noon, 1992 (as cited in Armstrong, 2014 a, p6) drew ‘doubts of whether HRM was a map, a model or a theory. But it is evident that the original concept could be seen as a philosophy’. The human
Human Resource Management (HRM) is the terminology used to illustrate formal systems devised for the management of people within an organization. It is the method of managing an organization or company that is directly related to the employees of that particular organization. The success of a business often rely heavily on the performance of managing human resource. Maximizing the desires and benefits of an organization and helping a business grow by rewarding employees to help motivate and push them in their performance is one of the main aim of HRM. By doing this, it will have a positive impact on both the company and it’s entire organization.
The aim of this report is to present overview of the methodology used gather my data and to produce a management report on my findings of the “Best practice/ High commitment” model of HRM. In this report I choose the Young’s Pub “The Waterfront” which is located in the Wandsworth. I choose this pub, because I am working there and I have good relationship with all staff so I can avoid any conflict about questions and it gives me opportunity to involve all “The Waterfront” staff.
The two approaches to HRM outlined above may not, however, be mutually exclusive and many argue that HRM should allow for mutually beneficial employer and employee outcomes. Heery and Noon (2001), in their analysis of the ambiguity present in the term „HRM‟, state that it is possibly simply a convenient short-hand
Different HRM literatures have associated different characteristics with High performance work organizations. In a research paper by by Tregaskis et al 's (2013), an interesting theory, Appelbaum et al 's (2000) Ability, Opportunity and Motivation theory has been used that captures the performance enhancing practices. Employee’s ability is developed through ability enhancing practices such as training opportunities, high pay, compensations; employees motivation is enhanced through practices such as merit based rewards based on employee or team 's outstanding performance; employees are given the opportunity to utilize their capabilities through practices such as information sharing employee involvement measures. Hence, employees feel obliged to reciprocate to the organization through supreme commitment. Moreover, when employees are satisfied, their work leads to higher productivity.
There are a few theories supporting the act of HRM. Two of these theories; Resource-based View and Ability and Motivation and Opportunity theories give off an impression of being the most well-known theoretical frameworks used in the studies that connect HRM and organizational performance. The Resource-Based View (RBV) theory which mixes ideas from organizational economics (Penrose, 1959) and strategic management (Barney, 1991) has it that HRM conveys included worth through the strategic development of the organization’s rare, significant, difficult to emulate and difficult to substitute HR. The RBV sets up that competitive advantage no more lies in regular assets, technology or economies of scale, subsequent to these are anything but easy
In the book Managing Human Assets written by Michael Beer, Richard E. Walton and Bert A. Spector in 1984 has explained about most seminal model - Harvard model of HRM. As per this HRM model there are four C’s which supports competitive position of the organisation. In this model understanding four C’s are important they are commitment, competence, congruence and cost effectiveness.
This is a hard model approach in HRM since it implements the policies and systems of business strategy as suggested by Legge (2005).
Much of the research on the link between HRM and firm performance has looked at single HR practice such as compensation or selection, while others attempted to look on the impact of combining different HR practices to improve firm performance (Becker & Gerhart, 1996). Pfeffer (1998, as cited in Tyson, 1997), for instance, put forward a seven-principle best practice which he believed is universally applicable. The seven best practice HRM elements include; employment security, selective hiring, self managed teams, high compensation contingent on organizational performance, extensive training, reduction of status difference, and information sharing. Theoretically, bundling several HR practices should produce greater performance effects than any of the individual human practices (Dyer & Reeves, 1995). However, in reality, there is no single standardized bundle of HR strategies that is universally applicable for all organizations. Each firm might require different bundles of HR strategies to improve its organizational performance. Wood (1999), for example, emphasized the integration of different HR policies if they are to work effectively and proposed that the HR systems should be in line with the business or competitive strategy of the organization if they are intended to improve organizational performance.
The world is changing at a very intense rate compared to the 1980s. With the rapid involvement and changing world of technology, it is becoming intertwined with almost all aspects of our life. With personnel management changing into human resource management. Human resource management has two models of approaching their work and that is hard HRM and soft HRM. These two are widely used for many organizations that involve the Human Resource team to approach the practices. There is no perfect way to run an organization with these strategies. Hard HRM involves a company that is usually looking at its employers and seeing them as resources that are adding to the overall efficiency and maximization of the organization. Hard HRM looks at resources in the organization and try to run the company as cheaply and understandable by the top of the pyramid employees and the lesser are replaceable and less important. The ‘hard’ approach may be seen as having some kinship with the calculative approach associated historically with scientific management (Druker, White, Hegewisch & Mayne, 1996, p.406). On the other hand, Soft HRM looks at its employees as more than another thing to make them more money but rather as assets to what makes the community of the organization great and successful. Soft HRM wants to make sure that the employees are committed and enjoying the experience and occupation in the organization. Soft HRM places an emphasis on “human” (Gill, 1999, p.4). Soft HRM wants the
In contrast to the Harvard Model, the Michigan model (Figure 4) is considered as a ‘hard’ HRM model. Those models consider human resources as economic factors for achieving the strategy of the organization (Henderson, 2008).
Gould-Williams (2004) has concluded four features of high commitment human HRM based on his research. The first one is that it is less possible for public sector managers to invest ‘efficient working practices and attempts to reduce costs’ (2004:66). The second feature is that the employees tend to perform similarly and get the same rewards, which means there is a lack of diversity in the working place. The third one is ‘a collective approach to industrial relations, staff participation, consultation and recognition of trade unions’ costs’ (2004:67) accounts for the concentration of these public unions. The last feature is that they highly welcome staff development and equal opportunities in order to be considered as distinctive model employers.
Human resource management (HRM) is undoubtedly being considered as an indivisible element of the organisations from the outset. From recruitment to employee retention, HRM has always committed to assist company to search and retain talents that have values toward the sustainable development. In view of the fact that, there are several studies with evidences presented to prove that there is a relationship between HRM and organizational performance, in which some HRM theorists also suggested that there is a causal link between them (Cooke, 2000). Though Gerhart (2005) stated that their relationship is regarded as a ‘black box’ that it lacked of clarity concerning what leads to what; it can be both performance leaded to HRM and vice versa.