HRM Strategy System Models Typology GCM

8/18/2019 HRM Strategy System Models Typology GCM

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HRM Strategy, System, Models and Typology

Dr. G C Mohanta, BE(Mech), MSc(Engg), MBA,PhD(Mgt)

ProfessorAl-Qurmoshi Institute of BusinessManagement, Hyderabad - !!!!


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Human Resour"e Strategy

HR strategy is designed to develo s!ills,attit"des # $ehaviors a%ong sta& that 'ill helthe organiation %eet its goals

HR strategy consists o rinciles or %anagingthe 'or!orce thro"gh HR olicies andractices

*t covers vario"s areas o h"%an reso"rces

"nctions+ recr"it%ent, co%ensation,eror%ance %anage%ent, re'ard,recognition, e%loyee relations and training


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*n s"ch 'or!laces, %anagers %"st rely on e%loyees to coe 'ith the "ncertainties inherent in the la$o"r rocess and%onitor and eval"ate the o"tco%es o 'or!. HR strategy ai%s at develoing highly co%%itted and e-i$le eole, internal%ar!ets that re'ard co%%it%ent 'ith ro%otion and a degree o o$ sec"rity, and a /articiative0 leadershi style that orgesa co%%onality o interest and %o$ilies consent to the organiation0s goals.

HR strategy %"st $e aligned 'ith theorganiation2s vision, %ission and goals

*n develoing an HR strategy, the co%any%"st analye the characteristics o its

ind"stry, deter%ine its co%etitiveadvantage, identiy !ey rocesses # !eyeole

Creating di&erent strategies or all gro"s o

eole in the organiation %ay $e necessary,deending on their s!ills, !no'ledge andresonsi$ilities

3he strategy %"st loo! at the organiation2sc"lt"re, str"ct"re, eole and syste%s

Human Resour"e Strategy$%ontd&'


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Human Resour"e System

H"%an reso"rce %anage%ent oerates thro"gh h"%an

reso"rce syste%s that $ring together in a coherent 'ay+

HR philosophies descri$ing the overarching val"es and

g"iding rinciles adoted in %anaging eole.HR strategies de4ning the direction in 'hich HRM

intends to go.

HR policies, 'hich are the g"idelines de4ning ho' these

val"es, rinciles and the strategies sho"ld $e aliedand i%le%ented in seci4c areas o HRM.

HR processes consisting o the or%al roced"res and

%ethods "sed to "t HR strategic lans and oliciesinto e&ect.


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Human Resour"e Strategy $%ontd&'

HR practices co%rising the inor%alaroaches "sed in %anaging eole

HR programmes, 'hich ena$le HR strategies,olicies # ractices to $e i%le%entedaccording to lan

Bec!er and Gerhart have classi4ed these

co%onents into three levels+ the syste% architect"re (g"iding rinciles)

olicy alternatives and

rocesses # ractices


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Models of HRM

3he ollo'ing are the three %odels o HRM+

Matching Model o HRM

G"est Model o HRMHarvard Model o HRM


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Mat"hing Model of HRM

As er %atching %odel o HRM+

HR syste%s # organiation str"ct"re sho"ld $e

%anaged in a 'ay that is congr"ent 'ithorganiational strategy

3here is a HR cycle, 'hich consists o 5 genericrocesses or "nctions that are eror%ed in all

organiations


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Mat"hing Model of HRM $%ontd&'

3hese are+

Selection 6 %atching availa$le h"%an

reso"rces to o$sA ppraisal 6 eror%ance %anage%ent

Rewards 6 /the re'ard syste% %"st $e short# long7ter%, $earing in %ind that /$"siness

%"st eror% in the resent to s"cceed in the"t"re0

Development 6 develoing high 8"alitye%loyees


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(uest Model of HRM

As er G"est Model, individ"als can $e%otivated or heling the organiation to achievee-cellence $y concentrating on si- core val"es

3he s"erior organiational e-cellence 'ill only$e achieved i these si- core val"es areintegrated 'ith organiation0s strategico$ective # are i%le%ented coherently.


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(uest Model of HRM $%ontd&' 3he si- core val"es are+

Ategy+ 3his 'ill set the long ter% goals o 'here theco%any is vie'ed, e-a%les o this co"ld $e a /to

%a!e - a%o"nt o ro4t over the ne-t 9 years0 or /togain 'orld'ide c"sto%er $ase 'ithin : years0.

HRM olicies need to $e set and e-a%les o these

are /Attendance olicies0, /;eave olicies0 or /Dress

code olicies0.A set o o"tco%es, an e-a%le o this co"ld $e /a

red"ction in the headco"nt 'hich %eet the o$ectiveso =0 or /e-ansion into the ?ar East has $een

achieved0.


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(uest Model of HRM $%ontd&'

3he $ehavioral o"tco%es are e-a%les o the'ay e%loyees react # resolve certain iss"esand these can incl"de analytical,

co%%"nication or decision %a!ing $ehaviorsPeror%ance o"tco%es are o$ectives 'hich

'ill %onitor an e%loyee0s eror%ance overthe year and 'ill eed into his@her yearly

araisal?inancial o"tco%es are the res"lt o HR

strategy and deter%ine the 4nancialeror%ance o the organiation


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Har)ard Model of HRM

Harvard %odel is $ased "on sit"ationalactors and sta!eholder interests

Sit"ational actors are not 'ithin the

organiation0s control, s"ch as, legal,environ%ental and trade "nions

Sta!eholder interests are actors 'hich arein"enced $y any erson or $ody 'ith a

vested interest in the organiation 3he %anagers can a&ect a n"%$er o actors

$y %eans o the olicy choices they %a!e


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Har)ard Model of HRM$%ontd&'

3he 5 C0s o this %odel are listed $elo'+

Co%%it%ent

Co%etenceCosts e&ectiveness

Congr"ence


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)$%ontd&'

Co%%it%ent o e%loyees to an organiation'ill lead to $etter loyalty and i%rovederor%ance

Co%etence is the s!ill and !no'ledge o the

e%loyee, highly s!illed # !no'ledgea$lee%loyee sho"ld $e retained # develoed

Cost e&ectiveness has i%act on salaries,$ene4ts, and the re'ard syste%

Congr"ence is the 8"ality o agree%ent$et'een the e%loyees and the organiation0sgoals


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Human Resour"e Typologies

HR tyologies are a$stractions that %ay not $ee-isting in 'or!lace, $"t they hel in"nderstanding nat"re o HR strategies

Acade%ics have roosed three %odels todi&erentiate $et'een /ideal tyes0 o HRstrategies

?irst %odel is control7$ased %odel # is

gro"nded in the 'ay in 'hich %anage%entatte%ts to %onitor and control e%loyee roleeror%ance


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Human Resour"e Typologies $%ontd&'

Second %odel, the reso"rce $ased %odel, isgro"nded+

in the nat"re o the e%loyer6e%loyee

e-change in the set o e%loyee attit"des

in $ehavio"rs and

in the 8"ality o the %anager6s"$ordinate

relationshi 3hird aroach creates an integrative %odel

that co%$ines reso"rce7$ased and control7$asedtyologies


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%ontrol Based Model

?irst aroach to %odeling di&erent tyes o HRstrategy is $ased on+

or!lace control and

Managerial $ehavio"r to direct # %onitore%loyee role eror%ance

According to this ersective, %anage%entstr"ct"res and HR strategy are instr"%ents #

techni8"es+to control all asects o 'or!

to sec"re a high level o la$o"r rod"ctivity anda corresonding level o ro4ta$ility


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$%ontd&'

hen organiations hire eole, they haveonly a otential or caacity to 'or!

3o ens"re that each 'or!er e-ercises his or

her "ll caacity, %anagers %"st organie thetas!s, sace, %ove%ent and ti%e 'ithin 'hich'or!ers oerate

So%eti%es 'or!ers0 o'n co"nter

%anage%ent $ehavio"r ca"ses %anagers tocontrol # disciline the interior o theorganiation

l d d l


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%ontrol Based Model$%ontd&'

3here are t'o tyes o control+ $"rea"craticcontrol and technical control

B"rea"cratic control incl"des 'ritten r"les

and roced"res covering 'or! 3echnical control incl"des %achinery or

syste%s 6 asse%$ly line, s"rveillance ca%eras

that set the ace o 'or! or %onitor

e%loyees0 $ehavio"r in the 'or!laceManagers can also "se a /divide and r"le0

strategy, "sing gender and race, to oster%anagerial control

% l d d l


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%ontrol Based Model$%ontd&'

?rst is the logic o direct, rocess7$asedcontrol, in 'hich the oc"s is on eciency #cost contain%ent

hereas the second is the logic o indirecto"tco%es7$ased control, in 'hich the oc"s ison act"al res"lts


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Resour"e Based Model

Second aroach to develoing tyologies oHR strategy is gro"nded in+

the nat"re o the re'ard6e&ort e-change and

the degree to 'hich %anagers vie' theirh"%an reso"rces as an asset as oosed to avaria$le cost

3he s"% o eole0s !no'ledge # e-ertise

and social relationshis, has the otential torovide

non7s"$stit"ta$le caa$ilities that serve as aso"rce o co%etitive advantage


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Resour"e Based Model $%ontd&'

S"stained co%etitive advantage is achieved

not thro"gh an analysis o a 4r%0s e-ternal%ar!et osition

$"t thro"gh a care"l analysis o its s!ills andcaa$ilities, characteristics

that co%etitors 4nd the%selves "na$le to

i%itate 3he reso"rce7$ased ersective e%hasies

the strategic i%ortance o e-loiting internal/strengths0 and ne"traliing internal

/'ea!nesses0

R B d M d l


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Resour"e Based Model$%ontd&'

3he reso"rce7$ased aroach e-loits thedistinctive co%etencies o a 'or!organiation+ its reso"rces and caa$ilities

An organiation0s reso"rces can $e dividedinto tangi$le and intangi$le reso"rces

3he caa$ilities are the collective s!illsossessed $y the organiation to coordinate

e&ectively the reso"rces

R B d M d l


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Resour"e Based Model$%ontd&'

?o"r characteristics o reso"rces and caa$ilities+

val"e, rarity, ini%ita$ility and non7s"$stit"ta$ility 6 arei%ortant in s"staining co%etitive advantage.

?ro% this ersective, collective learning in the'or!lace on the art o %anagers # non7%anagers on+

ho' to coordinate 'or!ers0 diverse !no'ledge # s!illsand

integrate diverse inor%ation technology, is a strategic asset that rivals 4nd dic"lt to relicate

*n other 'ords, leadershi caa$ilities are critical toharnessing the 4r%0s h"%an assets


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Integrati)e Model

Ba%$erger and Mesho"la% integrate the t'o%ain %odels o HR strategy+

one oc"sing on the strategy0s "nderlyinglogic o %anagerial control

the other oc"sing on the re'ard6e&orte-change

3hey $"ild a %odel that characteries the t'o

%ain di%ensions o HR strategy involving ac8"isition # develo%ent and

loc"s o control


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Integrati)e Model $%ontd&'

Ac8"isition and develo%ent are concerned'ith develoing internal h"%an caital

;oc"s o control is concerned 'ith the degreeto 'hich HR strategy oc"ses on %onitoringe%loyees0 co%liance 'ith rocess7$asedstandards


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3hese t'o %ain di%ensions o HR strategy yieldo"r

di&erent /ideal tyes0 o do%inant HR strategy+

Co%%it%ent,

Colla$orative,

Paternalistic and

3raditional.


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3he co%%it%ent HR strategy is characteried asoc"sing on the internal develo%ent o e%loyees0co%etencies and o"tco%e control

3he traditional HR strategy is vie'ed as oc"sing on the

e-ternal recr"it%ent o co%etencies and $ehavio"ralor rocess7$ased controls

3he colla$orative HR strategy involves the organiations"$contracting 'or! to e-ternal indeendent e-erts,giving e-tensive a"tono%y and eval"ating their

eror%ance ri%arily in ter%s o the end res"lts 3he aternalistic HR strategy o&ers learning

oort"nities and internal ro%otion to e%loyees ortheir co%liance 'ith rocess7$ased control%echanis%s


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rganiation0s HR strategy is strongly relatedto its co%etitive strategy

3he traditional HR strategy is %ost li!ely to $eadoted $y %anage%ent+

hen there is certainty over ho' in"ts aretransor%ed into o"tco%es and@or

hen e%loyee eror%ance can $e closely%onitored or araised


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3he other do%inant HR strategy, theco%%it%ent HR strategy, is %ost li!ely to $eo"nd in 'or!laces

in 'hich %anage%ent lac!s a "ll !no'ledgeo all asects o the la$o"r rocess and@or

the a$ility to %onitor closely or eval"ate the

ecacy o the 'or!er $ehavio"rs re8"ired ore-ec"ting the 'or!

3his tyically reers to /!no'ledge 'or!0.


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*n s"ch 'or!laces, %anagers %"st rely on

e%loyees to coe 'ith the "ncertainties inherentin the la$o"r rocess and %onitor and eval"atethe o"tco%es o 'or!.

HR strategy ai%s at develoing highly co%%itted# e-i$le eole,

internal %ar!ets that re'ard co%%it%ent 'ithro%otion and a degree o o$ sec"rity,

a /articiative0 leadershi style that orges aco%%onality o interest and

%o$ilies consent to the organiation0s goals.

Documents

HRM Strategy System Models Typology GCM