Michigan & Harvard are the main model of Human Resource Management (HRM).
It proposed by Fombrun, Tichy and Devanna (1984), Michigan Model suggest that, in order for an company to improve its performance, it must directly align its corporate and human resource strategies and structures. The model proposes that:
Individuals should be treated as organizational resources, should be obtained and resourced as cost-effectively as possible and should be developed ad exploited; Fit should be achieved between individual and organizational strategies by selecting the most suitable individuals to achieve its business activities and promoting optimum performance to achieve business objectives; Monitoring and appraising performance and providing appropriate feedback to employees; Rewarding to performance; Developing knowledge, skills and competence to achieve business objectives.
It proposed by Beer et al., (1984), suggests a softer, more humane side to HRM.
Employees are no organizational resource, but they are also human.
Four Human Resource policy areas are important to the model and should be developed:
HR flows are included recruitment, selection, utilisation / placement, appraisal, promotion, termination of employment; Reward management system, such as pay and motivation; Employees influence: power, delegation and responsibility; Work systems: aligning people to work design.
Beer et al., (1984) suggest that the use of the Harvard Model leads to the achievement of four c:
Competence of employees: skills, abilities, capabilities; Commitment of employees: to the organization and its culture; Congruence / fit of employee and organization goals; Cost-effectiveness of the human resource management function.
HRM has gone through an evolutionary process and is essentially resource centred. The function ensures that the organization is able to carry out its day-to-day activities by resourcing it...