ST.JOSEPHS INSTITUTE OF MANAGEMENT Trichy 2.

By, M. SNEHA I MBA

HARVARD FRAMEWORK MODEL

6-12-2010

contents
Strategic HRM HRM HARD and SOFT HRM vs PM Harvard Framework Cases 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
Managers Task
Quantitative Output

HARD HRM
Development of the Organisation
Employees Compliance

SOFT HRM
Recognition of environments
Performance Quality

Flexibility

SOFT HRM

Negotiation

Rights in employment relations

SOFT vs HARD HRM

HRM vs PM
Strategic Proactive Change Administrative Reactive Ignorant of market Separated Consensus

Integrated
Commitment Effectiveness

Efficiency
Specialist function

 Models are developed to analyse the impact of HRM on outcome, performance and strategy.
HRM professionals are expected to be technical cognitive flexible 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 ?

POLICY AREAS
Employee Influence

Work system

Rewards

Human Resource Flow

 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.

COMMITMENT

COMPETENCE

4 Cs
CONGRUENCE COST EFFECTIVENESS

4 Cs
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 longterm consequences.

COMMITMENT
Do HRM policies enhance the commitment of employees ? To what extent ?
DIGNITY IDENTITY LOYALTY SOCIETAL SPIN-OFF BETTER PERFORMANCE ENHANCED SELF WORTH PYSCHOLOGICAL INVOLVEMENT

COMMITMENT

TURNOVER ABSENTEEISM GRIEVANCES

COMPETENCE
Do 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
WAGES BENEFITS TURNOVER

ORGANIZATION SOCIETY INDIVIDUAL

ABSENTEEISM
STRIKES

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
PYSCHOLOGICAL

EMPLOYEE
PHYSIOLOGICAL

ECONOMICAL

ORGANIZATION

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

EFFICIENCY

ADAPTABILITY

SERVICE PERFORMANCE

PRICE PERFORMANCE

SHORT-TERM RESULTS

LONG-TERM RESULTS

SOCIETAL
For 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-maphrm.html#ixzz16h6kwfgQ http://www.africancentreforcommunity.com/BestPerspectivest ohumanresourcemanagementbyArreyMbongayaIvo.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