HARVARD FRAMEWORK MODEL

ST.JOSEPH’S INSTITUTE OF MANAGEMENT

Trichy – 2.

By, M. SNEHAI MBA

6-12-2010

contentsStrategic HRM

HRM – HARD and SOFTHRM vs PM

Harvard FrameworkCases

References

STRATEGIC HRM• People are the most important asset and have a

considerable influence on the overall performance of the organization .Huselid (1995).

• Effective human capital management practices are necessary if an organization wants to gain competitive advantage.

• Miller (1989), “Strategic HRM encompasses those decisions and actions, which concern the management of employees at all levels...

HARD AND SOFT HRM

HARD HRM

Employee’s Compliance

Quantitative Output

Managers Task

Development of the Organisation

HARDHRM

SOFT HRM

SOFT HRM

Flexibility Negotiation

Performance Quality

Recognition of environments

Rights in employment relations

SOFT vs HARD HRM

HRM vs PM

• Strategic

• Proactive

• Change

• Integrated

• Commitment

• Effectiveness

• Administrative

• Reactive

• Ignorant of market

• Separated

• Consensus

• Efficiency

• Specialist function

• Models are developed to analyse the impact of HRM on outcome, performance and strategy.

• HRM professionals are expected to be technical cognitiveflexible

communicative so as to achieve a learning organisation which is

efficient and innovative.

HARVARD FRAMEWORK• Developed by - Beer, Spector, Lawrence, Quin

Mills and Walton, 1984

• Is a Strategic map to guide all managers in their relations with employees and concentrates on the human or soft aspect of HRM.

• Strives at employee commitment (Wood, 1995) not control.

WHO ARE THE STAKEHOLDERS ?

Employee Influence

Work system Rewards

Human Resource Flow

POLICY AREAS

• Employee Influence : delegated levels of authority , responsibility , power.

• Human Resource Flows : recruitment , selection, placement , promotion, assessment, appraisal, termination etc.

• Rewards : Pay systems, incentives, motivation…

• Work Systems : Definition / Design of work and alignment of people.

4 C’s

COMMITMENT

CONGRUENCE

COMPETENCE

COST EFFECTIVENESS

4 C’s • ‘Four Cs' do not represent all the criteria to

evaluate the effectiveness of human resource management,

• Yet they are 'reasonably comprehensive‘

• In the long run, striving to enhance all four Cs will lead to favorable consequences for long-term consequences.

COMMITMENT• Do HRM policies enhance the commitment of

employees ?• To what extent ?

COMMITMENT LOYALTY

BETTER PERFORMANCEENHANCED SELF WORTH

DIGNITY

PYSCHOLOGICAL INVOLVEMENT

IDENTITY

SOCIETAL SPIN-OFF

TURNOVERABSENTEEISMGRIEVANCES

COMPETENCEDo HRM policies serve to attract, keep, or develop employees who have valuable skills and knowledge - both now and in the future?

Again there are benefits at all levels. If skills and knowledge are there when required, the organization benefits, and its employees 'experience an increased sense of self-worth and economic well-being.'

COST EFFECTIVENESS

STRIKES

WAGES

BENEFITS

TURNOVER

ABSENTEEISM

ORGANIZATION

SOCIETY

INDIVIDUAL

CONGRUENCE• The question can be raised about the level of congruence

in HRM policies between, for example:

- management and employees, - different employee groups, - the organization and the community, - employees and their families, and - within the individual?

Lacking leads to - low level of trust & common purpose ;high costs in terms of money, time and energy ; stress etc..

Beer et al argue that , HR policies SHOULD be influenced by ALL stakeholders.

If not, 'the enterprise will fail to meet the needs of these stakeholders in the long run and it will fail as an institution.'

HRM has much broader consequences than simply last quarter's profits or last year's return on equity.

Short-term measures are relatively unaffected by HRM policies. Long-term consequences should be taken into account.

EVALUATION OF HR POLICIES

Long-term consequences (both benefits and costs) of human resource policies should be evaluated at three levels:

INDIVIDUAL

ORGANIZATIONAL

SOCIETAL

INDIVIDUAL

EMPLOYEE

ORGANIZATION

PYSCHOLOGICAL

PHYSIOLOGICAL

ECONOMICAL

ORGANIZATIONALHR policies have to be evaluated in terms of their contribution to business goals and organizational survival.

ADAPTABILITY

PRICE PERFORMANCE

LONG-TERM RESULTS SHORT-TERM RESULTS

SERVICE PERFORMANCE

EFFICIENCY

SOCIETALFor example, Beer et al ask: "What are the societal costs of a strike or a layoff?“

They point out that "alienated and laid-off workers may develop both psychological and physical health problems that make them burdens to community, agencies funded by the local, state, or federal government.

Today employers pass on many of the costs of their management practices to society."

Cases

• In some areas there is a close coincidence of interests between corporations, individuals and the society. The physical and psychological well being of employees is gaining importance in corporate concern.

• Johnson and Johnson and Control Data, have launched extensive programs to help employees for health and develop personal programs for development.

REFERENCES• http://www.citehr.com/22332-harvard-map-

hrm.html#ixzz16h6kwfgQ• http://www.africancentreforcommunity.com/

BestPerspectivestohumanresourcemanagementbyArreyMbongayaIvo.htm

• http://www.emeraldinsight.com/journals.htm?articleid=844221&show=html

• http://www.nutshellforum.com/article.asp?id=6• Human Resource Management, 3rd Edition, Biswajeet Patnaayak• Human Resource Management: Critical Perspectives on

Business and Management, Volume 1,Micheal Poole