Is your HR system designed for just today? If you feel that way, then you must know of some strategic HRM models that fuel growth, engage talent, and lead change. Human resource management should work on a well-designed structure. This blog discusses common HR practices that everyone involved in HRM should adopt.
10 HRM Models HR Organization Should Incorporate
An HR model refers to the framework that defines the responsibilities and roles of the human resource management body in an organization. A model of HRM is a guide for HR professionals. That model, when implemented, becomes the root cause of positive HR outcomes.
Let us have a look at the top 10 HR models for the advanced HR value chain.
1. The Standard Casual Model of HRM
The standard causal model of HRM is based on likewise models, which were published from the 90s to the early 2000s. This model focuses on a standard chain of HR processes and their impact on the organization.
The chain begins with the business strategy and ends with the enhanced business performance. For instance, training, hiring, compensation, and appraisal can result in engagement, commitment, and quality output.
This model shows that the bonds in a work setting are not unidirectional. A multi-directional approach is good for the HR operating model, which leads to desirable financial stability. A better financial performance invites more investments, thereby improving an organization’s worth.
2. The HR Value Chain Model
The HR value chain is one of the most trusted HR models. Richordson and Paauwe introduced this model in 1997. It develops a nuance about how HRM outcomes are directly related to a good model structure.
The HR value chain focuses on HR activities to generate effective HR results. The idea is to come up with relevant and strategic HRM policies for HR management so that the organization can achieve its goals without having to deal with a ‘human resource’ problem.
3. The HR Value Chain Advanced Model
It remains clear to date what the original background of the HR value chain advanced model is. There are two primary differences.
The first difference is that there is a balanced scorecard to record organizational performance. The balanced scorecard shows crucial performance indicators from a process perspective, a customer perspective, and a financial perspective. These perspectives are linked to the HR value chain. The scorecard shows and aligns HR’s added value to the established model.
The second difference is that the model relies on HR enablers to start it. These enablers are the way to keep track of the HR function in the business. This involves capable experts, HR policies, HR budget, and several key elements. The idea is that the presence of these enablers is necessary for the value chain to work efficiently.
4. The Harvard Model of HRM
Michael Bear introduced this HRM model in 1984. Contributions from Richardson and Paauwe were made as well. This model was developed with a holistic direction to HR and how it impacts various levels of outcomes. The model builds itself on five components:
- Stakeholder Interest
- Conditional factors
- HRM Strategies
- HRM Outcomes
- Long-Term Consequences
HR functions and processes are shaped over these key components. It is considered a high-impact HR operating model that you should implement to lead to business success. This is exactly what the Harvard Model of HRM aims to deliver.
5. The Guest Model
David Guest developed this model from the late 1980s to the 1990s. He was a professor at King’s Business School in the UK. The model emphasizes the importance of better HR outcomes through newer human resources techniques that are different from traditional management activities.
It was one of the earliest models to include both “soft” and “hard” HRM perspectives. The model also acknowledged the impact of HRM on the execution of business strategies. It is a nod to the vital practice of organizational behaviour.
The Guest Model establishes six correlated dimensions to solidify itself as a competency model:
- HRM Strategy
- HRM Practices
- HRM Outcomes
- Behaviour Outcomes
- Performance Outcomes
- Financial Outcomes
6. The Warwick Model
Researchers Pettigrew and Hendry developed a notable HRM model in the 1990s. While this model is similar to both the Harvard and Guest models, it offers a fresh perspective on the alignment of HR strategy and practices with internal and external contexts.
This model is designed to explore the effect of outer environmental forces that impact the organization’s internal elements. The Warwick Model influences HR with these elements:
- Outer Context
- Inner Context
- Business Strategy
- HRM Content
- HRM Context
This model highlights the importance of HRM and helps in the achievement of critical HR goals. HR must anticipate and understand these points to adapt and change for the development of business strategies.
- The Ulrich Model
David Ulrich proposed the Ulrich Model in his book, Human Resource Champions, in 1996, which discusses four crucial points HR should be serious about:
- Administrative Expert
- Employee Champion
- Change Agent
- Strategic Ally
These four roles are not necessarily job titles, and HR experts can assume the roles in one or more of their duties.
The strategic ally role in the Ulrich model helps the HR department move from a strict transactional and administrative role to a meaningful contributor. HR connects with senior leadership in this model of partner affiliation. It is one of the highly praised HR management models of all time.
Ulrich practised his business model in 2005, spreading the operations and adding a fifth role. The updated five roles are: Strategic Ally, Operation Expert, Human Capital Developer, and Employee Advocate. With the implementation of these roles, Ulrich meant to improve HR leadership, HR business partners, centres of excellence, and shared services.
8. The Storey Model
John Storey developed this HRM model. He was a British researcher and professor of HR management and organizational change. His work argued the importance of commitment-driven HR (Soft HRM), which was different from his control-based HR (Hard HRM), reiterating how various approaches influence business performance.
Storey argues that hard HRM prioritizes cost effectiveness, which turns the whole process into taking employees as mere resources. Meanwhile, soft HRM considers employees valuable assets to drive long-term business success. Both directions are present in business; Storey believes the soft HR leads to retention, productivity, and innovation.
There are four crucial aspects of this model:
- Beliefs and assumptions
- Key levers
- Strategic concepts
- Line management
9. The 8-Box Model by Paul Boselie
Paul Boselie’s 8-Box Model begins with the identification of four external forces that impact HR:
- Context of the external general market
- Content of the external popular market
- Context of the external general institution.
- Context of the external population institution.
Keeping these contexts in mind, we should focus on four core elements:
- Configuration
- HR practices and strategies
- Critical HR goals
- Final business goals
The combination of these external forces and core elements makes it ‘The 8-Box Model,’ which has been successful to date and remains one of the most popular HR management models.
10. The 5Ps HR Model
The 5Ps HR Model is a strategic gateway that integrates HR with five key points: People, Processes, Principles, Purpose, and Performance. It emphasizes the idea that HR should not operate alone but should be well-connected to the strategic functions of an organization for the sake of adaptability and growth.
- People
- Processes
- Principles
- Purpose
- Performance
When you link these 5Ps, it results in a shift from reactive administration to a strategic and proactive function. This model does not push for policies and procedures only; it maintains leadership, culture, and workforce development.
Conclusion: The Right HRM Models for Business Progress
Your choice of the HRM models will shape your business’s future. There are 10 common models in practice nowadays; you need to address challenges, identify trends, and analyze well which one suits your organization the most. If you want meaningful progress and positive results in the HR department, then a fitting human resource model is the way to go.
Frequently Asked Questions
What is a human resource model?
A human resource model is a framework designed to understand and assign the roles of the HR department in an organization.
What is the five-factor model of HR roles?
The five-factor model consists of five primary dimensions: neuroticism, agreeableness, extraversion, conscientiousness, and openness to experience.
Describe core HR systems
HRM systems are based on four core systems:
- Selection, recruitment, and placement.
- Learning and development.
- Performance management.
- Rewards and recognition.
How practical is the HR model of strategy?
A strategic HR model is a design to manage a company’s employees. From the evaluation of potential employees and recruited workers to helpful guidance, HRM models offer valuable plans to improve an organization’s environment.
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