Human Resources Planning and Development >> Human Resource Models Applicable to an Organization

Two Human Resource Models applicable to an organization

There are two HR models which are currently employed at this organization are Guests Model of HRM and the Harvard Model of HRM. David Guest (1989, 1997) and he had the view that individuals can be motivated and help the organization achieve excellence by concentrating on 6 core values. Guest argued that superior organizational excellence will only be achieved if these 6 core values are integrated with the organization’s strategic objective and are implemented coherently. The 6 core values as stated by David Guest (1989, 1997) are: ategy, this will set the long term goals of where the company is viewed, examples of this could be a ‘to make x amount of profit over the next 5 years’ or ‘to gain worldwide customer base within 3 years’. Next HRM policies need to be set and examples of these are ‘Attendance policies’, ‘Leave policies’ or ‘Dress code policies’. Another facet of Guest’s model was a set of outcomes, an example of this could be ‘a reduction in the headcount which meet the objectives of 2010’ or ‘expansion into the Far East has been achieved’. The behavioral outcomes are examples of the way employees react and resolve certain issues and these can include analytical, communication or decision making behaviors. Performance outcomes are objectives which will monitor an employee’s performance over the year and will feed into his/her yearly appraisal. An example of performance outcomes are: ‘Ensuring x amount of money is saved’, ‘improving team processes’ and ‘Bringing an amount of new customers to the organization’. Financial outcomes are as a result of the HR strategy in place, depending on which strategy a company operates will determine the financial performance of the organization.

Another model that this organization uses is the Harvard Model of HRM, which was devised by Beer et al (1984). The Harvard Model is based on all management decisions that directly affect the relationship between the organization and its employees; it also views employees as an asset to the organization than a burden on the balance sheet.

The model is based upon situational factors and stakeholder interests, situational factors are not within the organization’s control such as legal, environmental and trade unions. Stakeholder interests are factors which are influenced by any person or body with a vested interest in the organization. Beer et al goes onto state ‘managers can affect a number of factors by means of the policy choices they make’ . The 4 C’s of Beer’s model are listed below:

• Commitment
• Competence
• Costs effectiveness
• Congruence

Commitment is around the commitment of employees to an organization based upon the HR policies, more commitment will lead to better loyalty and improved performance; however poor HR policies could have the opposite effect. Competence is based upon the impact HR policies have on retaining highly skilled and knowledgeable staff; it also involves the development of employees. Cost effectiveness of the HR policies will include the impact on salaries, benefits, and the reward system. It answers questions such as what does the HR policy say regarding bonuses and pay increments. Congruence is the quality of agreement between the employees and the organization’s goals.

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