(John Storey, 1995) Human resource
management is a distinctive approach to employment
management which seeks to achieve competitive
advantage through the strategic deployment of a highly
committed and capable workforce, using an integrated
array of
Cultural, structural and personal techniques.
Definition-2: A strategic and coherent approach to the
management of an organisation`s most valued assets-the
people working there who individually and collectively
contribute to the achievement of its objectives.
Key Concepts:
 Distinctive approach to employment management
 Competitive advantage
 Deployment of committed & capable workforce
 A strategic and coherent approach
John Storey (1995), in New Perspectives on Human resource
management, made a distinction between two versions of
HARD HRM: It emphasises the need to manage people in
ways that will obtain added value from them and thus
achieve competitive advantage. Thus it concentrates on
quantitative, measurable criteria, control and performance
management. The hard approach emphasises:
The interests of management
Adopting a strategic approach that is closely integrated
with business strategy
Obtaining added value from people by the process of
human resource deployment and performance
The need for a strong corporate culture expressed in
mission and value statements and reinforced by
communications, training and performance management
2. SOFT VERSION:The soft model of HRM is based
upon human relations school and is identified
by Storey as involving `treating employees as
valued assets, a source of competitive
advantage through their commitment,
adaptability and high quality.
The need to gain commitment of employees
The interests of management and employees
should coincide
Integration and team work
g Model
HarvardDavid Guest John Storey
THE MATCHING MODEL: the human resource
system and organisation structure should
match with organisational strategy.
HRM is based on central philosophy and
strategic vision
HRM involves all management decisions and
action that affect the nature of the
relationship between the organisation and its
A longer term perspective in managing people
and consideration of people as potential
assets rather than variable costs.
Mutual interests.
MATCHING MODEL: The concept of FIT has been
criticised on a number of fronts:
A number of writers have commented that
business strategy dictates HR strategy.
Business strategy is formulated in a rational
way, by the top down approach.
A perfect match between business strategy
and Hr strategy might not be to the advantage
of the organisation as a whole.
It ignores the complex nature of human
beings and the possibility that workers and
their unions might influence strategic
DAVID GUEST:has taken the Harvard Model and
developed it further by defining 4 policy goals:
Strategic Integration
High Commitment
High Quality
2. John Storey; suggests four aspects which constitute the
meaningful version of HRM
HRM is constellation of beliefs & assumption
The central involvement of line managers
A strategic thrust informing decisions about people
Reliance upon a set of levers to shave the employment
It is top management driven and management
oriented activity
It emphasises the need for strategic fit-the
integration of business and HR strategies
It is commitment oriented
It can take either hard or soft form
It is performance oriented
Employee relations are unitarist rather than
pluralist, individual rather than collective, high
trust rather than low trust
Reward according to performance, competence
or skills.
This model emanates from the Centre for
Corporate Strategy and Change at the
University of Warwick and with two particular
researchers, Hendry and Pettigrew( 1990).
The Warwick model draws heavily from the
Harvard framework to extend the analysis of
HRM and has five elements:
1) Outer context;
2) Inner context;
3) Business strategy content ; and 4) HRM
The model takes cognizance of HRM business
strategy and HRM practices, the external and
internal context in which these activities take
place, and the process by which such change
take place, including interactions between
changes in both context and content. The
strength of the model is that it identifies and
classifies important environmental influences
on HRM. Henry and Pettigrew’s research
focused on mapping the context and
exploring how HRM adapted to changes in
Out context: look at things like socioeconomic , technical ,political-legal
Inner context: culture, structure,
politics/leadership , task-technology,
business outputs
Business strategy content:- objectives, product
market strategy and tactics.
The Storey model of HRM is derived from the
speculative accounts of what the HRM
paradigm( theory, concept ) might consists
of. The model demonstrates the differences
between what Storey termed the’ personnel
and industrials’ and the HRM paradigm. His
model also has four parts:
 Beliefs and assumptions
 Strategic aspects
 Line management and key levers
The prevailing beliefs and assumptions of
HRM, as pointed out by Guest ( 1987), are
HRM attempts to increase trust and
employee commitment and aims to go
‘beyond the contract’. The strategic aspects
of Storey’s model shows HRM central to
corporate planning. The third component,
line management, gives HRM specialists a’
transformational leadership’ role in the
Evidence from ‘ core’ companies suggests
that general managers and line managers
have emerged in almost all cases as they key
players on HR issues. The key levers are
shown on the lower portion of Storey’s model
and are issues and techniques strongly
featured , explicitly or implicitly , in
discussions of HRM. Storey found
considerable unevenness in the adoption of
these key levers( performance related pay,
harmonisation of conditions and the learning
The learning company). The model was used to
advise a checklist of 25 key HRM variables to
quantify the degree of movement from one
approach to the other in fifteen ‘ core’
organisations( Storey , 1992).
Explain the differences between Storey,
Harvard, and Guest Models and discuss their
similarities and importance to any
What role does human resource management
play in organisations?
To what extent is HRM different from
conventional personnel management ?