One of the first explicit statements of the HRM concept was made by the Michigan School in 1984. They held that HR systems and the organization structure should be managed in a way that is congruent with organizational strategy (hence the name matching model). They further explained that there is a human resource cycle (an adaptation of which is illustrated in Figure), which consists of four generic processes or functions that are performed in all organizations. These are: 1. Selection matching available human resources to jobs; 2. appraisal performance management; 3. Rewards the reward system is one of the most under-utilized and mishandled managerial tools for driving organizational performance; it must reward short as well as long-term achievements, bearing in mind that business must perform in the present to succeed in the future; 4. Development developing high quality employees.
The Harvard Model of HRM
Harvard Model (Beer et al., 1984) stresses the human, soft, aspect of HRM and is more concerned with the employeremployee relationship. It highlights the interests of different
stakeholders in the organization (such as shareholders, management, employee groups,
government, community, unions) and how their interests are related to the objectives of management. The analytical framework of the Harvard model consists of six basic components:
Situational factors Stakeholders interests Human resource management policy choices HR outcomes Long-term consequences Feedback through which the outputs flow directly into the organization and to the stakeholders
The 5-p Model of HRM
5-P Model (Schuler, 1992) melds ve human resource activities (philosophies, policies, programs, practices and processes) with strategic needs. The model shows the interrelatedness of these activities and explains their significance in achieving the organization's needs.
The Contextual Matching Model of HRM
Contextual Model (Hendry et al., 1988; Hendry and Pettigrew, 1992) is based on the premise that organizations may follow a number of different pathways in order to achieve the same results. This is so mainly because of the existence of a number of linkages between external environmental context (socio-economic, technological, political-legal and competitive) and internal organizational context (culture, structure, leadership, task technology and business output). These linkages contribute directly to forming the content of an organization's HRM.
The European Model of HRM
European Model (Brewster, 1993, 1995) is based on the argument that European organizations are constrained at both international (European Union) and national level by national culture and legislation. They are also constrained at the organizational level by patterns of ownership and at the HRM level by trade union involvement and consultative arrangements. These constraints need to be accommodated while forming a model of HRM.