FRAMEWORKS OF HRM

Introduction

HRM is the study of activates regarding people working in an organization. It is a managerial function that tries to match an organization’s needs to the skills and abilities of its employees. The main aim of the human resource management is to ensure that organization can achieve success through people.

The HRM has two basic models which focus on the hard and soft HR approaches. Michigan Model of HR focus in the hard side of Human while the Harvard Model of HR is focus on the soft side; humanities of the employees.

Michigan Model of HRM

The first model is given in the Michigan school bu Fombrun in1984. This model focus on the hard HR practices, people should be treated as the other physical resources of the organization. It has mainly concern on the output of the employees.

This model is also called Matching Model; organization structure and HR system matched with the organization mission and strategies, Fig 1.

Fig 1. Michigan Model of HRM

Mission & strategy

Organization Structure

HR system

Cultural forcesEconomical Forces

Political Forces

Firm

In the figure shows that organization structure and HR M are made as the organization strategies are. The political forces, economical forces and cultural forces are which indirectly affect the HR system and directly to organization strategies which ultimately affect HR systems.

HRM system is explained by HR cycle fig 2

Fig 2 Human Resource cycle

Fombrun et al identified four common HR processes performed in every organization:

Selection: o Organizational requirementso Matching people to jobso Right person on right job

Appraisal o Check the performance of employees

Rewards: o Emphasizing the real importance of pay and other forms of compensation in

achieving results Development

o Training to new hired employeeso Opportunities to learn skills

Harvard Model of HRM

Harvard model is given in the Harvard School by Beer and his companion in 1984. This focuses on the soft side of HR practices. It is a strategic map to guide all managers in their relations with employees and concentrates on the human or soft aspect of HRM. Wood (1995) strive at employee commitment not control.

The Harvard Model of HRM is shown in Fig 3

Selection

Rewards

Appraisal

HR Development

Organizational Effectiveness

Fig 3. Harvard Model of HRM

This model show that the human resource policies are influenced by two dimensions:

Situational Factorso The environmental factors affect the HR policies

Stockholders Interesto HR policies are influences by the stockholders interest.

HR policies

The stakeholders interest and situation factors leads to make HR policies which are

Employee InfluenceDelegation of:

o Authority

o Responsibility

o Power

HR Flowo Recruitment, Selection

o Placement, Promotion

o Assessment, Appraisal

o Termination

Reward Systemo Pay systems

o Incentives

o Motivation

Work Systemo Design of work

o Alignment of people

These policies give outcomes in four Cs.

Commitmento psychological attachment with Organization

Competencyo Ability to do job Properly

Cost Effectivenesso Wage

o Turnover

o Benefits

o Absenteeism

o Strikes

Congruenceo similarity between objects/individuals

These all four Cs leads to favorable consequences for individual well-being, societal well-being, and organizational effectiveness.

CHALLENGES OF HRM

Globalization:

globalization is the process of denationalization of markets, politics and legal systems. Growing internationalization of business has its impact on HRM in terms of problems of unfamiliar laws, languages, practices, competitions, attitudes, management styles, work ethics etc.

Revolution in Information Technology-..

Information technology has influenced HRM through human resources information systems (HRIS) that streamline the processing of data and make employee information more readily available to managers.

Changes in the Economic Environment

Some of the key factors are the scarcity of raw materials and other inputs including power

and electricity, encouragement of the culture of consumerism, increasing consumer awareness and demand for quality products, continuing upward trend in the inflationary pressures with decrease in the purchasing power of rupee and its spiraling effects in the ever increasing aspirations of workers for higher wages and other material benefits and mounting costs on the employee welfare and other benefits. In an inflationary economy, the resources tend to become scarce and the costs of machine, materials and labour multiply. These push up the capital and running costs.

Changes in political and legal environment

Changes in political and legal environment means changes in political parties and rules regulation due to which new laws are come and you have to follow all laws while doing business. It is the responsibility of Human Resource manager to anticipate the changes and prepare organization to face them without any breakdown in its normal functioning.

Workforce Diversity

The future success of any organizations relies on the ability to manage a diverse body of talent that can bring innovative ideas, perspectives and views to their work. The challenge and problems faced of workplace diversity can be turned into a strategic organizational asset if an organization is able to capitalize on this melting pot of diverse talents.

Conclusion

To conclude that it can be said that HR practice is becoming more ad more challenging day by day, they have to face lot of problems like retention, attraction of employee, dealing with different cultural people, managing work force diversity, technological and informational changes to overcome with these challenges training (Cross cultural training and technological and informational training) is necessary of HR people. To reduce mobility of professional personnel HR people have to motivate them from monetary and non monetary techniques. Proper performance evaluation system and proper career development plans should be used in the organization to reduce professional mobility.