THE HARVARD MODEL OF HRM



WHAT IS HARVARD MODEL

The Harvard model of Human Resource was postulated by Beer et al (1984) at Harvard University. This model was also named as ‘the map of HRM territory’. This model recognizes the legitimate and existence of various multiple stakeholders in the organization. These stakeholders include, government, a various group of employees and community. Like the Michigan model that focuses on the hard HRM, this model focuses on the human or soft side of Human Resource Management, Anthony sadella (2018).

  1. Situational Factors

Situational factors refer to the external and internal conditions that influence HRM policies and practices within an organization. These factors shape the context in which HRM operates and affect the strategic decisions made regarding the management of human resources. Situational factors can be broadly categorized into external environmental factors and internal organizational factors Alice watts (2023).

  1. External Environmental Factors:

  • Industry Environment: The industry in which the organization operates plays a significant role in shaping HRM practices. Factors such as market competition, industry regulations, technological advancements, and economic conditions can impact how organizations attract, retain, and develop talent.

  • Legal and Regulatory Environment: Laws and regulations related to employment, labor relations, workplace safety, and diversity have a direct influence on HRM practices. Compliance with legal requirements is essential for organizations to avoid legal risks and ensure fair and ethical treatment of employees.

  • Socio-Cultural Environment: Socio-cultural factors, including societal values, norms, demographics, and trends, influence HRM practices such as recruitment, diversity initiatives, and employee engagement. Organizations must consider cultural differences and adapt HRM strategies to meet the needs and expectations of a diverse workforce.

  • Globalization: Globalization has transformed the business landscape by increasing competition, expanding markets, and facilitating cross-border collaboration. HRM practices need to be adapted to manage global teams, multicultural workforces, and international assignments effectively.

  1. Internal Organizational Factors:

  • Organizational Culture: The culture of an organization defines its values, beliefs, norms, and behaviors. HRM practices should be aligned with the organization's culture to reinforce desired behaviors, promote employee engagement, and foster a positive work environment.
  • Organizational Strategy: The strategic goals and objectives of the organization influence HRM decisions related to staffing, training, performance management, and compensation. HRM practices should support the achievement of organizational goals by ensuring that the right people are in the right roles and have the necessary skills and resources to succeed.
  • Organizational Structure: The structure of the organization, including its size, hierarchy, and distribution of authority, can impact HRM practices such as communication, decision-making, and career development. HRM policies need to be flexible enough to adapt to changes in organizational structure and support collaboration across different departments and levels.
  • Technology: Advances in technology, such as automation, artificial intelligence, and data analytics, are transforming HRM practices in areas such as recruitment, performance management, and employee training. Organizations need to leverage technology effectively to streamline HR processes, improve decision-making, and enhance the employee experience.




     2.  Stakeholder Interests

Stakeholders' interests refer to the diverse groups or individuals who have a vested interest in the organization and are affected by its HRM policies and practices. Recognizing and addressing the interests of these stakeholders is essential for achieving organizational success and maintaining sustainable relationships. The Harvard model emphasizes the importance of balancing the needs and expectations of various stakeholders to create value for the organization and its broader community. Key stakeholders in the Harvard model of HRM include:hummas (2023) online

  • Employees: Employees are among the most critical stakeholders in any organization. They have a direct interest in fair treatment, competitive compensation, opportunities for development and advancement, safe working conditions, and a supportive work environment.
  • Management: Management represents the leadership team and executives responsible for setting organizational goals and strategies. .
  • Shareholders: Shareholders are individuals or entities that own shares or have a financial stake in the organization. They are interested in HRM practices that promote profitability, enhance shareholder value, and generate a favorable return on investment. 
  • Customers: Customers are the individuals or organizations that purchase goods or services from the organization. They are interested in HRM practices that deliver high-quality products or services, meet their needs and expectations, and provide exceptional customer experiences.
  • Society and Community: Society and the broader community have an interest in the social responsibility and ethical conduct of organizations. They expect HRM practices that promote diversity, equity, inclusion, environmental sustainability, and corporate citizenship.
  • Government and Regulatory Bodies: Governments and regulatory bodies set laws, regulations, and standards that govern employment practices and workplace conditions. They have an interest in HRM practices that comply with legal requirements, promote workplace health and safety, and support equal employment opportunities.

   3. Harvard model outline four HR policy areas. 

  • Human Resource flows: Human resource flow concerns managing the flow of people into, though, and out of the organisation. For instance, decisions on recruitment and selection, promotion, termination of employment, and related issues of job security, career development, advancement, and fair treatment. Recruitment, selections, placement, promotion, appraisal and assessment, termination 
  • Reward system: Reward systems regulate how employees are extrinsically and intrinsically rewarded for their work. The rewards can be tangible and intangible or in kind. Employees need to be motivated, rewarded for their work, and besides, the work system or payment system should be designed for the benefits of the employees as well. 
  • Employee influence: Employees wanted to be part of the organization as a family. Work delegation of authority, responsibility makes them feel part of the organization. 
  • Work system: Every organization has a working design and employee alignment. The design makes the work in the organization to work effectively and efficiently.


4.The human resource outcomes

  • Commitment: Refers to the dedication and engagement of employees towards their work and the organization. It includes both employee commitment to their work and organizational commitment to the organization's goals and values.
  • Competence: Relates to the knowledge, skills, and abilities of employees, as well as the organization's overall capability to compete effectively in the marketplace.
  • Congruence: Involves the alignment between individual or group goals and values with those of the organization, promoting harmony and shared purpose.
  • Cost-effectiveness: Pertains to the efficiency and effectiveness of HRM practices in achieving organizational goals while optimizing resources and controlling costs.

These outcomes serve as indicators of the effectiveness of HRM policies and practices in contributing to organizational success and enhancing employee well-being.


5. Long-term consequences

The enduring impacts of HRM policies and practices on organizations and their stakeholders over time. These consequences are crucial for assessing the overall effectiveness and sustainability of HRM strategies.

  • Organizational Performance: The ultimate goal of HRM is to enhance organizational performance and competitiveness. Long-term consequences involve assessing how HRM practices contribute to achieving strategic objectives, increasing productivity, and delivering value to stakeholders.
  • Employee Morale and Engagement: HRM practices influence employee morale, satisfaction, and engagement, which have long-term implications for employee retention, productivity, and organizational culture.
  • Reputation and Brand Image: Effective HRM practices contribute to building a positive reputation and brand image for the organization, attracting top talent, enhancing customer trust, and maintaining stakeholder confidence.
  • Social and Environmental Responsibility: HRM practices that promote social responsibility, diversity, equity, inclusion, and environmental sustainability contribute to long-term value creation for society and the environment.


Reference:

Antony sadella kamis,(2018),HUMAN RESOURCE MODELS: HARD AND SOFT, ResearchGate paper, pg 6-7


Brunetto, Yvonne, Farr-Wharton, Rodney, Shacklock, Kate,(2011),Using the Harvard HRM model to conceptualise the impact of changes, griffith university

https://doi.org/10.1080/09585192.2011.543633


Alice watts, (2023),What Is The Harvard Model of Human Resources Management (HRM),online

https://www.neuroworx.io/magazine/what-is-the-harvard-model-of-hrm/


Hummans,2023,harvard hrm model (online)


Comments

Post a Comment

Popular posts from this blog

Leveraging Training and Development to Enhance Organizational Performance

Image
WHAT IS TRAINING & DEVELOPMENT Training and development is the ongoing process of enhancing abilities, learning new information, refining ideas, and altering mindset via organized, planned instruction with the goal of raising employee performance and productivity. Training and development place a strong emphasis on enhancing both individual and group performance inside the company by implementing an appropriate system that focuses on the knowledge, abilities, and material needed to accomplish the goal. Effective employee training fosters the growth of their abilities and knowledge, which in turn boosts a business's production and fosters overall expansion. mba skool (2016). Training and Development Process Training and development is a continuous process as the skills, knowledge and quality of work needs constant improvement. Since businesses are changing rapidly, it is critical that companies focus on training their employees after constantly monitoring them & developing t...
Read more

AI Powered Workforce Planning

Image
Introduction The importance of having the appropriate talent in the right location at the right time never changes in today's corporate environment, even while industries change at breakneck speed. Still, it's easier said than done. Given the fluctuations of the labor market, it can be difficult to predict what your firm will require not just tomorrow but also months or years from now. Then introduce artificial intelligence. This edition of AI@Work explores how AI is transforming the work of HR professionals and how it has a significant impact on workforce planning. 1. Forecasting Future Staffing Needs Historically, staffing predictions were based on current trends and manual estimations, making them  reactive and occasionally imprecise. AI takes a proactive approach:tom darly (2023).   Data-driven predictions : AI systems analyze vast amounts of data to make predictions. From studying industry trends to examining your company's growth trajectories, AI offers a detai...
Read more