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Analysis Of The Harvard Model Of HRM
Oct 8, 2016 1154 Words 5 Pages
1.2.1.6.1 The Harvard Model of HRM:
Back in 1984, Beer et al developed the Harvard model of the HRM. Beer et al believe that the
human resource is passes many of pressures nowadays, therefore, eliminating the pressures is
required. These pressures could be eliminating by having a long-term perspective in terms of
controlling people and potential assets rather than just variable costs. As a result, Beer et al
approach the Harvard Model of the HRM. The purpose of this model is to solve the pressures
that may occur in the HR of any organizations; these pressures include all management decisions
that will affect the relationship between the organizations and their workers, in addition to a clear
plan for the HRM policies and procedures by the manager of the organizations to accomplish
their goals. In other word, when a manager develop a standpoint of how he desire to distinguish
their employees and what is the HR policies and practices to follow in order to attain their goals
(Grint, 2012).
Furthermore, Beer et al said that it is required for any manger to have a method to follow in order
to make sure that he/she able to determine the appropriate human recourses policies and practices
for their organizations (Grint, 2012).
For that reason, Beer et al release the Harvard Model Map of HRM that provides the manager
with a clear determination of the HR polices. This model consists of six basic components as the
following (Grint, 2012) (See Appendix):
1. Situational factors.
2. Stakeholder interests.
3. Human Recourse Management policy choices.
4. Human Resource outcomes.
5. Long-term consequences.
6. Feedback loop.
To start with, the first component of the Harvard model is the Situational factors. It is defined as
the factors that affect the management’s choices of the HR strategies. These include the laws and
societal values inside and outside the company, business strategies and Labor market regulations.
Added to that, it is contain philosophy of management, work-force characteristics and task
technology (Grint, 2012).
Moving to, the second component of the Harvard Model is the stakeholder interests. This
component contains all shareholders, management employees, government and communities.
The Stakeholder interests identify the essential of trade-offs between the business owners
interests and their employees in the organizations (Grint, 2012).
Human Recourse Management policy choices are the third component of Harvard Model.
Management’s decisions and actions could be emphasize in the field of Human Resource
Management only if it acknowledged that there are relations between constrains and choices in
the organizations. This model summarizes four HR Policy areas (Grint, 2012):
 Human Resources flow including “Recruitment, Selection, Promotion, Appraisals, termination
etc”.
 Reward Systems including” Motivation and paying system”.
 Employee influenced including “delegated levels of authority, responsibility, power etc”.
 Work system including “designing of the work and the aliment of people in the work”.
A new theory established by an American psychologist Abraham Maslow in 1943 to support the
human resource management policies and choices component of the Harvard Model. This theory
called as “Maslow Hierarchy of Needs”. The purpose of this theory is to concentrate on the
motivation of the people using set of factors with different level (“Griffin, n.d”).
These factors are (“Griffin, n.d”) (see Appendix):
1. Physiological factor:
The first level is the physiological needs that contain all the essentials needs of human being, for
example, food, water, sleep, home and etc (“Griffin, n.d”).
2. Safety and security needs:
The second level is Safety and security needs, these include body security, employment,
morality, health of family, property etc(“Griffin ,n.d”).
3. Love and belonging needs:
The third level is Love and belonging needs, this level contain friendship, family relationship and
group works (“Griffin, n.d”).
4. Esteem needs:
The fourth level is Esteem which includes the self-esteem, self-belief, achievement, reputation,
respect of others and respect by others (“Griffin ,n.d”).
5. Self-Actualization:
The last level is Self Actualization, this contain morality, creativity, problem solving, lack of
prejudice and acceptance of facts (“Griffin ,n.d”).
By applying the Maslow Hierarchy of Needs to BNH, this theory will be beneficial to BNH as it
will increase their employee’s motivation to achieve the tasks required from them in time. As
well as, BNH has a manual already which includes all policies and procedures, the policies and
procedures is exits secure the employees and have a clear reference to any situation in the
organization. The Maslow Hierarchy Needs includes the Safety and Security Needs which is
achieved by having a Manual in BNH and applied for all employees to feel secure and protected
by a law.
Additionally, the human resource outcomes are the fourth component of Harvard Model. The
above HRM policy choices initiate the HR policy outcomes that any company have and need to
be achieved (Grint, 2012).
These include (Grint, 2012):
 The commitment of employees that includes employees feeling to the organizations.
 The degree of congruence between employees owns goals and the organization goals.
 The overall competence of employees including the similarity between object and individuals.
 The overall cost effectiveness of HRM practices, including benefits, wages, absenteeism and
turnover.
Besides, the long-term consequences are the fifth component of Harvard Model. This component
shows the benefits and costs of the HR policies by differentiates between individuals,
organizational and societal using the above HR outcomes (Commitment, Congruence,
Competence and Cost Effectiveness). Individuals mean employees, hence the long –term for
them is the well being of them and the reward system that the employee’s received depends on
their efforts in the organization. Organizational means raising efficiency to guarantee the
survival of the company. Societal is when people are hard working in their job to achieve several
of the company goals. In addition, Harvard Model will help companies to classify their inputs
and outcomes of HRM (Grint, 2012).
In terms of the feedback loop, after explaining the model component it seems that the situational
factor influence HRM policies and choices. Also, the long term output influence the situational
factors, stakeholder interest and HR policies. This means that all components have two way
relationships and completed each other’s (Grint, 2012).
Added to that, the following are two characteristic features that Harvard Model recommended to
the HRM (Grint, 2012):
1. Line managers believe that in order to ensure the harmonization of competitive strategy and
personnel policies, he should recognize more responsibility.
2. Have the mission of setting policies that managed the development of the personnel activities
and the way of making them more mutually reinforcing is a personnel responsibility.
Overall, BNH will benefit from using the Harvard Model of HRM as using this model will
organize their works. They will have clear ideas about their stakeholder interests and how they
influence their employees to be effective in their work. Also, this model will help in the
expansions of the framework of HRM in BNH to include the influence of the employee, the
organization of work and the linked supervisory styles questions.
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