HRM PROCESS MODEL
FIGEN CAKAR, B.Sc., MSc
SUPERVISOR Dr.UMIT S. BITITCI
JANUARY 2001
CONTENTS
•Research Aim
•Background
•HRM Models from the literature review
•Specific Research Objective
•From study of HR Literature
•Model Development
•HRM Business Process Model
•1st Version of HRM Business Process Model
•2nd Version of HRM Business Process Model
•HRM Business Process Model on IDEF0
•Comparison of The Models
•Investor In People Standard
•Contribution
•Future Work
AIM
To study Human Resource Management
(HRM) as a business process in the
manufacturing environment.
Background
EFQM EXCELLENCE MODEL
Conclusion
HR are key assets to the business. HR have a significant impact on
the business results. Therefore there is a need to understand HRM as a business
process
HR LITERATURE
Michigan Model of HRM
Strategic management and environmental pressures
Political
forces
Economic
forces
Cultural
forces
Mission and
Strategy
Organisation
structure
Human
resource
management
HR LITERATURE
Michigan Model of HRM
The human resource cycle
Rewards
Selection
Performance
Appraisal
Development
HR LITERATURE
Harvard Model of HRM
Human Resource System
Work system
Employee
influence
Human resource flow
Rewards
HR LITERATURE
Harvard Model of HRM
Stakeholder
Interest
Stakeholders
Management
Employee groups
Government
Community
Unions
Situational
Factors
Work force
characteristics
Business strategy
and conditions
Management
philosophy
Labour market
Unions
Task technology
Laws and
societal values
A map of the HRM territory
HRM Policy
Choices
Employee Influence
Human resource flow
Reward systems
Work systems
HR Outcomes
Commitment
Competence
Congruence
Cost-effectiveness
Long-term
Consequences
Individual
well-being
Organisational
effectiveness
Societal
well-being
HR LITERATURE
Guest’s Model of HRM
Policies
Organisational and job design
Policy formulation and
implementation/management
of change
Human resource outcomes
Strategic planning /
implementation
Organisational outcomes
High job performance
High problem - solving
Recruitment, selection and
socialisation
Commitment
Successful change
Appraisal, training and
development
Flexibility / adaptability
Low turnover
Manpower flows - through, up
and out of the organisation
Reward systems
Communication systems
Low absence
Quality
Low grievance level
High cost - effectiveness i.e.
full utilisation of human
resources
HR LITERATURE
Socio-economic
Technological
Political-legal
Competitive
Warwick Model of HRM
Inner context
Business strategy
content
Culture
Structure
Politics/leadership
Task-technology
Business outputs
Objectives
Product-market
Strategy & tactics
HRM context
Role
Definition
Organisation
HR outputs
HRM context
HR flows
Work systems
Reward systems
Employee relations
HRM LITERATURE
HRM MODELS GENERIC CLASSIFICATION
According to Legge we can identify 4 HRM models, namely :
•Normative Model
•Descriptive-functional
•Critical-evaluative
•Descriptive-behavioral
Tyson has identified 3 HRM Models
•Descriptive Model
•Analytical Model
•Normative model
Storey has also identified 3 HRM models
•Conceptual Model
•Descriptive Model
•Prescriptive or Normative Model
SPECIFIC RESEARCH OBJECTIVE
To use systems engineering approach
to develop and test a business process
model for HRM to clarify this
confusion.
FROM STUDY OF HR LITERATURE
HARD AND SOFT SYSTEM APPROACH TO HRM
“Hard” HRM emphasises the quantitative, calculative and
business-strategy aspects of managing the headcounts resource in as
“rational” a way as for any other economic factor.”
“Soft” HRM traces its roots to the human relations school and emphasises
communication, motivation and leadership.” (Story , London, 1989)
Model Development
Developed v1 of the Business Process model for
HRM from literature
Validated the model through consultation with:
• 14 industrialists - HR specialist / function
• 8 HRM academics
Through structured questionnaires
Feed back from the consultation was used to
develop v2 of the model.
S
U
B
P
R
O
C
E
S
S
E
S
A
C
T
I
V
I
T
I
E
S
1ST VERSION OF HRM PROCESS MODEL”
MAKE HRM
STRATEGY
IMPLEMENT
HRM STRATEGY
c
o
n
t
a
i
n
s
c
o
n
t
a
i
n
s
Set
Objective
c
o
n
t
a
i
n
s
Control HR
Inc.Planning,
Monitor,Utilization
Establish Current
Capabilities
Plan
Negotiate
Budget
Recruit
Assess
Select
Train
Educate
Develop
Manage HR
Performance
Inc.review,appraisal
Manage
Redeployment
Figen Cakar, Center for Strategic Manufacturing, 1998
MONITOR IMPACT
ON BUSINESS
RESULT
Monitor Impact on
Business Strategy
Monitor Impact on
People Satisfaction
Monitor Impact on
Manage Processes
Monitor Impact on
Operate Processes
Monitor Impact on
Support Processes
S
U
B
P
R
O
C
E
S
S
E
S
A
C
T
I
V
I
T
I
E
S
2ND VERSION OF HRM PROCESS MODEL”
MAKE HRM
STRATEGY
IMPLEMENT
HRM STRATEGY
c
o
n
t
a
i
n
s
MONITOR IMPACT
ON BUSINESS
RESULT
c
o
n
t
a
i
n
s
Set
Objective
c
o
n
t
a
i
n
s
Control HR
Inc.Planning,
Monitor,Utilization
Establish Current
Capabilities
Plan
Negotiate
Budget
Set HR Policies
Figen Cakar, Center for Strategic Manufacturing, 2000
Recruit
Assess
Select
Train
Educate
Develop
Manage HR
Performance
Inc.review,appraisal
Manage
Redeployment
Negotiations for
Working Condition
Monitor Impact on
Business Strategy
Monitor Impact on
People Satisfaction
Monitor Impact on
Manage Processes
Monitor Impact on
Operate Processes
Monitor Impact on
Support Processes
HRM PROCESS MODEL ON IDEF0
HR Philosophy
Goverment Business Resource Avaliable
Legislation Environment to the Company
Business Strategy Objectives, Vision, Mission
HRM
PROCESS
People Satisfaction Objectives (Target etc.)
Business Process
Satisfaction
Feedback
A0
Business Performance
Resources (Human, Finance, IT etc.)
HR Philosophy
I3
C1
Business Strategy Objectives, Vision, Mission
I1
Business
Environment
Resource Avaliable
to the Company
C2
C3
C4
Business Process
Satisfaction
O1
HR Policies
MAKE
HRM
STRATEGY
Feedback
Goverment
Legislation
Practice
HRM Strategy
(Approved)
1
People Satisfaction Objectives (Target etc.)
I2
I4
IMPLEMENT
HRM
STRATEGY
Business Performance
Implemented
HRM Strategy
Culture
2
MONITOR
IMPACT ON
BUSINESS
RESULTS
Business
Objectives
Stakeholder Satisfaction
3
M1
Resources (Human, Finance, IT etc.)
I1
HR Philosophy
Business Strategy Objectives, Vision, Mission
C1
Requirements of
Business and
Business
Processes
Feedback
I2
Set
Objectives
Goverment
Legislation
Business
Environment
Resource Avaliable
to the Company
C2
C3
C4
HR Objectives
1
Input fromTeam Leader, Manager
Review, appraisal or interview
Establish
Current
Capabilities
Gaps
2
Plan
HRM Strategy (Draft)
3
I3
People Satisfaction Objectives (Target etc.)
HRM Strategy
(Approved)
Negotiate
Budget
O2
HRM Strategy
(Approved)
I1
HR Policies
Practice
HR Philosophy
C1
C4
C2
Resource Avaliable
to the Company
C3
4
Set HR
Policies
Negotiations
HR Plan
HR Policies
5
Implemented
HRM Strategy
Control
HRM
O1
A21
O1
(Redeployment)
M1
Resources (Human, Finance, IT etc.)
I2
Business Performance
Assess
Select
Recruit
Selected People
Trainnig needs
A22
Business Strategy
Train
Educate
Develop
(Training and Development)
Immediate tranning needs
from business processes
(e.g. New technology)
Developed People
A23
Manage HR
Performance
HR Performance Result
Feedback from the process
A24
Aggreed
Implemented
HRM Strategy
I1
Business
Objectives
I2
Terms and Conditions
HRM Strategy
Redeployment
A25
Negotiations
for Working
Condition
(Terms and Conditions effect)
Culture
Competitors
Manage
Redeployment
Appraisal and Reviews
A26
Feedback to policy
on Working Condition
C1
Policy on Working Condition
M1
Business
Environment
Goverment
Legislation
C3
C2
Monitor
Impact on
Business
Strategy
Compansation Policy
Resource Avaliable
to the Company
C4
Efficient Business Performance
Effective Business Strategy
Stakeholder Satisfaction
Shareholder Satisfaction
O1
A31
Monitor
Impact on
People
Satisfaction
Resources (Human, Finance, IT etc.)
Satisfied People
Performance Improvement
Process Policies
A32
Business
Strategy
Customer
Risk
Inquiry Management
Effective Processes
Uncertainties
Performance Measurement
Questionnaire
Monitor
Impact on
Manage
Processes
A33
Performance Improvement
Customer Requirement
Information from
External & Internal Environment
Market Analysis Feedback
Reduced Uncertainties
Effectives Business Strategy
Process Satisfaction
Monitor
Impact on
Operate
Processes
Product & Service Development
Customer Satisfaction
Compatitive Advantage
A34
Current Resources & Situations
Monitor
Impact on
Support
Processes
A35
I3
Business Performance
M1
Resources (Human, Finance, IT etc.)
Improved
Process Performance
Process Satisfaction
HRM PROCESS MODEL ON IDEF0
HR Philosophy
Goverment Business Resource Avaliable
Legislation Environment to the Company
Business Strategy Objectives, Vision, Mission
HRM
PROCESS
People Satisfaction Objectives (Target etc.)
Business Process
Satisfaction
Feedback
Business Performance
HR Philosophy
A0
Goverment Business Resource Avaliable
Legislation Environment to the Company
Resources (Human, Finance, IT etc.)
HR Philosophy
I3
C1
Business Strategy Objectives, Vision, Mission
I1
Resource Avaliable
to the Company
C3
C4
Business Process
Satisfaction
O1
Practice
HRM Strategy
(Approved)
1
People Satisfaction Objectives (Target etc.)
I2
Business Strategy Objectives, Vision, Mission
Business
Environment
C2
HR Policies
MAKE
HRM
STRATEGY
Feedback
Goverment
Legislation
I4
IMPLEMENT
HRM
STRATEGY
Business Performance
HRM
PROCESS
Implemented
HRM Strategy
Culture
2
People Satisfaction Objectives (Target etc.)
MONITOR
IMPACT ON
BUSINESS
RESULTS
Business
Objectives
Feedback
Business Process
Satisfaction
Stakeholder Satisfaction
3
M1
I1
Requirements of
Business and
Business
Processes
Feedback
I2
Set
Objectives
A0
Resources (Human, Finance, IT etc.)
Business Performance
HR Philosophy
Business Strategy Objectives, Vision, Mission
C1
Goverment
Legislation
Business
Environment
Resource Avaliable
to the Company
C2
C3
C4
HR Objectives
1
Input fromTeam Leader, Manager
Review, appraisal or interview
Establish
Current
Capabilities
Gaps
2
Plan
HRM Strategy (Draft)
3
I3
People Satisfaction Objectives (Target etc.)
HRM Strategy
(Approved)
Negotiate
Budget
O2
HRM Strategy
(Approved)
I1
HR Policies
Practice
HR Philosophy
C1
C4
C2
Resource Avaliable
to the Company
C3
4
Set HR
Policies
Negotiations
HR Plan
HR Policies
5
Implemented
HRM Strategy
Control
HRM
O1
A21
O1
(Redeployment)
M1
Resources (Human, Finance, IT etc.)
I2
Business Performance
Assess
Select
Recruit
Selected People
Trainnig needs
A22
Business Strategy
Train
Educate
Develop
(Training and Development)
Immediate tranning needs
from business processes
(e.g. New technology)
Resources (Human, Finance, IT etc.)
Developed People
A23
Manage HR
Performance
HR Performance Result
Feedback from the process
A24
Aggreed
Implemented
HRM Strategy
I1
Business
Objectives
I2
Terms and Conditions
HRM Strategy
Redeployment
A25
Negotiations
for Working
Condition
(Terms and Conditions effect)
A26
M1
Culture
Competitors
Manage
Redeployment
Appraisal and Reviews
Feedback to policy
on Working Condition
C1
Business
Environment
Goverment
Legislation
C3
C2
Monitor
Impact on
Business
Strategy
Policy on Working Condition
Compansation Policy
Resource Avaliable
to the Company
C4
Efficient Business Performance
Effective Business Strategy
Stakeholder Satisfaction
Shareholder Satisfaction
O1
A31
Monitor
Impact on
People
Satisfaction
Resources (Human, Finance, IT etc.)
Satisfied People
Performance Improvement
Process Policies
A32
Business
Strategy
Customer
Risk
Inquiry Management
Effective Processes
Uncertainties
Performance Measurement
Questionnaire
Monitor
Impact on
Manage
Processes
A33
Performance Improvement
Customer Requirement
Information from
External & Internal Environment
Market Analysis Feedback
Reduced Uncertainties
Effectives Business Strategy
Process Satisfaction
Monitor
Impact on
Operate
Processes
Product & Service Development
Customer Satisfaction
Compatitive Advantage
A34
Current Resources & Situations
Monitor
Impact on
Support
Processes
A35
Improved
Process Performance
Process Satisfaction
HRM PROCESS MODEL ON IDEF0
HR Philosophy
Goverment Business Resource Avaliable
Legislation Environment to the Company
Business Strategy Objectives, Vision, Mission
HRM
PROCESS
People Satisfaction Objectives (Target etc.)
Business Process
Satisfaction
Feedback
Business Performance
HR Philosophy
C1
Business Strategy Objectives, Vision, Mission
I1
Goverment
Legislation
Business
Environment
Resource Avaliable
to the Company
C3
C4
C2
Resources (Human, Finance, IT etc.)
HR Philosophy
I3
MAKE
HRM
STRATEGY
Feedback
C1
Business Strategy Objectives, Vision, Mission
I1
I3
A0
1
C2
C3
C4
Business Process
Satisfaction
O1
Practice
Practice
People Satisfaction Objectives (Target etc.)
IMPLEMENT
HRM
STRATEGY
Business Performance
Implemented
HRM Strategy
Culture
2
MONITOR
IMPACT ON
BUSINESS
RESULTS
Business
Objectives
Stakeholder Satisfaction
3
People Satisfaction Objectives (Target etc.)
I2
O1
HRM Strategy
(Approved)
HRM Strategy
(Approved)
I4
Resource Avaliable
to the Company
HR Policies
1
I2
Business
Environment
HR Policies
MAKE
HRM
STRATEGY
Feedback
Goverment
Legislation
Business Process
Satisfaction
M1
Resources (Human, Finance, IT etc.)
I1
HR Philosophy
Business Strategy Objectives, Vision, Mission
C1
Requirements of
Business and
Business
Processes
Feedback
I2
Set
Objectives
I4
Goverment
Legislation
Business
Environment
Resource Avaliable
to the Company
C2
C3
C4
IMPLEMENT
HRM
STRATEGY
Business Performance
HR Objectives
1
Input fromTeam Leader, Manager
Review, appraisal or interview
Establish
Current
Capabilities
Gaps
Implemented
HRM Strategy
Culture
2
2
Plan
HRM Strategy (Draft)
3
I3
People Satisfaction Objectives (Target etc.)
HRM Strategy
(Approved)
Negotiate
Budget
O2
HRM Strategy
(Approved)
I1
HR Policies
Practice
HR Philosophy
C1
C4
C2
Resource Avaliable
to the Company
C3
4
Set HR
Policies
Negotiations
HR Plan
HR Policies
5
Implemented
HRM Strategy
Control
HRM
O1
A21
(Redeployment)
M1
Resources (Human, Finance, IT etc.)
MONITOR
IMPACT ON
BUSINESS
RESULTS
O1
I2
Business Performance
Assess
Select
Recruit
Selected People
Trainnig needs
A22
Business Strategy
Train
Educate
Develop
Business
Objectives
(Training and Development)
Immediate tranning needs
from business processes
(e.g. New technology)
Developed People
A23
Manage HR
Performance
HR Performance Result
A24
Culture
Competitors
Manage
Redeployment
Appraisal and Reviews
Stakeholder Satisfaction
3
Feedback from the process
Aggreed
Implemented
HRM Strategy
I1
Business
Objectives
I2
Terms and Conditions
HRM Strategy
Redeployment
A25
Negotiations
for Working
Condition
(Terms and Conditions effect)
A26
M1
Feedback to policy
on Working Condition
C1
Business
Environment
Goverment
Legislation
C3
C2
Monitor
Impact on
Business
Strategy
Policy on Working Condition
Compansation Policy
C4
Effective Business Strategy
Stakeholder Satisfaction
Shareholder Satisfaction
O1
A31
Monitor
Impact on
People
Satisfaction
M1
Resources (Human, Finance, IT etc.)
Resources (Human, Finance, IT etc.)
Resource Avaliable
to the Company
Efficient Business Performance
Satisfied People
Performance Improvement
Process Policies
A32
Business
Strategy
Customer
Risk
Inquiry Management
Effective Processes
Uncertainties
Performance Measurement
Questionnaire
Monitor
Impact on
Manage
Processes
A33
Performance Improvement
Customer Requirement
Information from
External & Internal Environment
Market Analysis Feedback
Reduced Uncertainties
Effectives Business Strategy
Process Satisfaction
Monitor
Impact on
Operate
Processes
Product & Service Development
Customer Satisfaction
Compatitive Advantage
A34
Current Resources & Situations
Monitor
Impact on
Support
Processes
A35
Improved
Process Performance
Process Satisfaction
HRM PROCESS MODEL ON IDEF0
HR Philosophy
Goverment Business Resource Avaliable
Legislation Environment to the Company
Business Strategy Objectives, Vision, Mission
HRM
PROCESS
People Satisfaction Objectives (Target etc.)
Business Process
Satisfaction
Feedback
HR Philosophy
Business Strategy Objectives, Vision, Mission
C1
I1
Goverment
Legislation
Business
Environment
Resource Avaliable
to the Company
C3
C4
A0
Business Performance
C2
Requirements of
Business and
Business
Processes
Feedback
I2
Resources (Human, Finance, IT etc.)
Set
Objectives
HR Philosophy
C1
Business Strategy Objectives, Vision, Mission
I1
Goverment
Legislation
Business
Environment
Resource Avaliable
to the Company
C2
C3
C4
Business Process
Satisfaction
HR Objectives
1
I3
MAKE
HRM
STRATEGY
Feedback
Practice
HRM Strategy
(Approved)
1
Establish
Current
Capabilities
Input fromTeam Leader, Manager
Review, appraisal or interview
O1
HR Policies
People Satisfaction Objectives (Target etc.)
I2
I4
IMPLEMENT
HRM
STRATEGY
Business Performance
Gaps
Implemented
HRM Strategy
Culture
2
2
MONITOR
IMPACT ON
BUSINESS
RESULTS
Business
Objectives
Stakeholder Satisfaction
3
Plan
HRM Strategy (Draft)
M1
Resources (Human, Finance, IT etc.)
I1
HR Philosophy
Business Strategy Objectives, Vision, Mission
C1
Requirements of
Business and
Business
Processes
Feedback
I2
Set
Objectives
Business
Environment
Resource Avaliable
to the Company
C2
C3
C4
3
HR Objectives
1
I3
Goverment
Legislation
People Satisfaction Objectives (Target etc.)
Input fromTeam Leader, Manager
Review, appraisal or interview
Establish
Current
Capabilities
Gaps
Plan
HRM Strategy
(Approved)
Negotiate
Budget
2
HRM Strategy (Draft)
O2
3
I3
People Satisfaction Objectives (Target etc.)
HRM Strategy
(Approved)
Negotiate
Budget
O2
HRM Strategy
(Approved)
I1
HR Policies
Practice
HR Philosophy
C1
C4
C2
Resource Avaliable
to the Company
C3
4
4
Set HR
Policies
Negotiations
HR Plan
HR Policies
5
Implemented
HRM Strategy
Control
HRM
O1
A21
(Redeployment)
Resources (Human, Finance, IT etc.)
Set HR
Policies
O1
M1
I2
Business Performance
Assess
Select
Recruit
Selected People
Trainnig needs
A22
Business Strategy
Train
Educate
Develop
(Training and Development)
Immediate tranning needs
from business processes
(e.g. New technology)
Developed People
A23
HR Policies
Negotiations
Manage HR
Performance
A24
Appraisal and Reviews
M1
Redeployment
Resources (Human, Finance, IT etc.)
M1
Negotiations
for Working
Condition
A26
C1
Implemented
HRM Strategy
Aggreed
I1
Business
Objectives
I2
Terms and Conditions
HRM Strategy
A25
(Terms and Conditions effect)
Culture
Competitors
Manage
Redeployment
O1
5
HR Performance Result
Feedback from the process
Feedback to policy
on Working Condition
Business
Environment
Goverment
Legislation
C3
C2
Monitor
Impact on
Business
Strategy
Policy on Working Condition
Compansation Policy
Resource Avaliable
to the Company
C4
Efficient Business Performance
Effective Business Strategy
Stakeholder Satisfaction
Shareholder Satisfaction
O1
A31
Monitor
Impact on
People
Satisfaction
Resources (Human, Finance, IT etc.)
Satisfied People
Performance Improvement
Process Policies
A32
Business
Strategy
Customer
Risk
Inquiry Management
Effective Processes
Uncertainties
Performance Measurement
Questionnaire
Monitor
Impact on
Manage
Processes
A33
Performance Improvement
Customer Requirement
Information from
External & Internal Environment
Market Analysis Feedback
Reduced Uncertainties
Effectives Business Strategy
Process Satisfaction
Monitor
Impact on
Operate
Processes
Product & Service Development
Customer Satisfaction
Compatitive Advantage
A34
Current Resources & Situations
Monitor
Impact on
Support
Processes
A35
Improved
Process Performance
Process Satisfaction
HRM PROCESS MODEL ON IDEF0
HR Philosophy
Goverment Business Resource Avaliable
Legislation Environment to the Company
Business Strategy Objectives, Vision, Mission
HRM
PROCESS
People Satisfaction Objectives (Target etc.)
Business Process
Satisfaction
Feedback
HRM Strategy
(Approved)
I1
HR Policies
Practice
HR Philosophy
C1
C4
C2
A0
Business Performance
Resource
Avaliable
to the Company
C3
Implemented
HRM Strategy
Resources (Human, Finance, IT etc.)
Control
HRM
HR Plan
HR Philosophy
A21
I3
Assess
Select
Recruit
(Redeployment)
I2
Business Performance
I1
Requirements of
Business and
Business
Processes
Feedback
I2
Set
Objectives
Resource Avaliable
to the Company
C2
C3
C4
Gaps
O1
I4
IMPLEMENT
HRM
STRATEGY
Business Performance
Trainnig needs
Implemented
HRM Strategy
Culture
2
Business Strategy
Train
Educate
Develop
MONITOR
IMPACT ON
BUSINESS
RESULTS
Business
Objectives
Stakeholder Satisfaction
Developed People
3
M1
Resources (Human, Finance, IT etc.)
A23
Manage HR
Performance
HR Performance Result
Feedback from the process
2
Plan
A24
HRM Strategy (Draft)
Manage
Redeployment
3
I3
O1
Business Process
Satisfaction
People Satisfaction Objectives (Target etc.)
I2
HR Objectives
Establish
Current
Capabilities
C4
Practice
1
Input fromTeam Leader, Manager
Review, appraisal or interview
Resource Avaliable
to the Company
C3
Selected People
Immediate tranning needs
from business processes
(e.g. New technology)
Business
Environment
Business
Environment
C2
HRM Strategy
(Approved)
A22
Goverment
Legislation
Goverment
Legislation
HR Policies
MAKE
HRM
STRATEGY
Feedback
1
(Training and Development)
HR Philosophy
Business Strategy Objectives, Vision, Mission
C1
C1
Business Strategy Objectives, Vision, Mission
I1
People Satisfaction Objectives (Target etc.)
HRM Strategy
(Approved)
Appraisal and Reviews
Negotiate
Budget
O2
HRM Strategy
(Approved)
I1
HR Policies
Practice
HR Philosophy
C1
C4
C2
Resource Avaliable
to the Company
C3
4
Set HR
Policies
Negotiations
HR Plan
HR Policies
5
O1
A21
A25
O1
(Redeployment)
M1
Resources (Human, Finance, IT etc.)
(Terms and Conditions effect)
I2
Redeployment
Implemented
HRM Strategy
Control
HRM
Business Performance
Assess
Select
Recruit
Selected People
Trainnig needs
A22
Business Strategy
Train
Educate
Develop
(Training and Development)
Immediate tranning needs
from business processes
(e.g. New technology)
Negotiations
for Working
Condition
Developed People
A23
Manage HR
Performance
HR Performance Result
Feedback from the process
A24
Aggreed
Implemented
HRM Strategy
I1
Business
Objectives
I2
Terms and Conditions
HRM Strategy
Redeployment
A25
Negotiations
for Working
Condition
M1
(Terms and Conditions effect)
A26
Resources (Human, Finance, IT etc.)
M1
Culture
Competitors
Manage
Redeployment
Appraisal and Reviews
Feedback to policy
on Working Condition
C1
Business
Environment
C3
A26
Monitor
Impact on
Business
Strategy
Policy on Working Condition
Compansation Policy
Aggreed
Terms and Conditions
Goverment
Legislation
Feedback to policy
on Working Condition
Resource Avaliable
to the Company
C2
C4
Efficient Business Performance
Effective Business Strategy
Stakeholder Satisfaction
Shareholder Satisfaction
O1
A31
Monitor
Impact on
People
Satisfaction
Resources (Human, Finance, IT etc.)
Satisfied People
Performance Improvement
Process Policies
A32
Business
Strategy
Customer
Risk
Inquiry Management
Effective Processes
Uncertainties
Performance Measurement
Questionnaire
Monitor
Impact on
Manage
Processes
A33
Performance Improvement
Customer Requirement
Information from
External & Internal Environment
Market Analysis Feedback
Reduced Uncertainties
Effectives Business Strategy
Process Satisfaction
Monitor
Impact on
Operate
Processes
Product & Service Development
Customer Satisfaction
Compatitive Advantage
A34
Current Resources & Situations
Monitor
Impact on
Support
Processes
A35
Improved
Process Performance
Process Satisfaction
HRM PROCESS MODEL ON IDEF0
HR Philosophy
Goverment Business Resource Avaliable
Legislation Environment to the Company
Business Strategy Objectives, Vision, Mission
HRM
PROCESS
People Satisfaction Objectives (Target etc.)
Business Process
Satisfaction
Feedback
Culture
Competitors
C1
Implemented
HRM Strategy
A0
Business Performance
Business
Environment
Goverment
Legislation
Resource Avaliable
to the Company
C2
C4
C3
Resources (Human, Finance, IT etc.)
I1
Business
Objectives
I2
Monitor
Impact on
Business
Strategy
HRM Strategy
Efficient Business Performance
HR Philosophy
Goverment
Legislation
Business
Environment
Resource Avaliable
to the Company
C2
C3
C4
Effective Business Strategy
C1
Business Strategy Objectives, Vision, Mission
I1
Business Process
Satisfaction
Shareholder Satisfaction
A31
I3
Monitor
Impact on
People
Satisfaction
Policy on Working Condition
Compansation Policy
MAKE
HRM
STRATEGY
Feedback
1
I4
Satisfied People
IMPLEMENT
HRM
STRATEGY
Business Performance
Performance Improvement
Implemented
HRM Strategy
Culture
2
Process Policies
Business
Strategy
A32
Customer
Risk
Inquiry Management
MONITOR
IMPACT ON
BUSINESS
RESULTS
Business
Objectives
Stakeholder Satisfaction
3
I1
HR Philosophy
Business Strategy Objectives, Vision, Mission
C1
Uncertainties
Requirements of
Business and
Business
Processes
Feedback
I2
Set
Objectives
Goverment
Legislation
Business
Environment
C2
C3
Monitor
Impact on
Manage
Processes
Questionnaire
Resource Avaliable
to the Company
C4
Performance Measurement
HR Objectives
Input fromTeam Leader, Manager
Review, appraisal or interview
Establish
Current
Capabilities
Plan
HRM Strategy (Draft)
3
I3
People Satisfaction Objectives (Target etc.)
HRM Strategy
(Approved)
Negotiate
Budget
O2
Effectives Business Strategy
Process Satisfaction
Monitor
Impact on
Operate
Processes
4
Set HR
Policies
Negotiations
Performance Improvement
Customer Requirement
Information from
External & Internal Environment
Market Analysis Feedback
HRM Strategy
(Approved)
I1
HR Plan
HR Policies
5
HR Policies
Practice
HR Philosophy
C1
C4
C2
Resource Avaliable
to the Company
C3
Product & Service Development
Customer Satisfaction
Compatitive Advantage
A34
Implemented
HRM Strategy
Control
HRM
O1
A21
O1
(Redeployment)
M1
Resources (Human, Finance, IT etc.)
Reduced Uncertainties
Resources (Human, Finance, IT etc.)
Gaps
2
Effective Processes
M1
A33
1
I2
Business Performance
Assess
Select
Recruit
Selected People
Current Resources & Situations
Trainnig needs
A22
Business Strategy
Train
Educate
Develop
(Training and Development)
Immediate tranning needs
from business processes
(e.g. New technology)
Developed People
A23
Manage HR
Performance
Monitor
Impact on
Support
Processes
Improved
Process Performance
Process Satisfaction
A35
HR Performance Result
Feedback from the process
A24
Business Performance
(Terms and Conditions effect)
M1
Aggreed
Implemented
HRM Strategy
I1
Business
Objectives
I2
Terms and Conditions
HRM Strategy
Redeployment
A25
Resources (Human, Finance, IT etc.)
M1
Culture
Competitors
Manage
Redeployment
Appraisal and Reviews
I3
O1
Practice
HRM Strategy
(Approved)
People Satisfaction Objectives (Target etc.)
I2
Stakeholder Satisfaction
O1
HR Policies
Negotiations
for Working
Condition
A26
Feedback to policy
on Working Condition
C1
Business
Environment
Goverment
Legislation
C3
C2
Monitor
Impact on
Business
Strategy
Policy on Working Condition
Compansation Policy
Resource Avaliable
to the Company
C4
Efficient Business Performance
Effective Business Strategy
Stakeholder Satisfaction
Shareholder Satisfaction
O1
A31
Monitor
Impact on
People
Satisfaction
Resources (Human, Finance, IT etc.)
Satisfied People
Performance Improvement
Process Policies
A32
Business
Strategy
Customer
Risk
Inquiry Management
Effective Processes
Uncertainties
Performance Measurement
Questionnaire
Monitor
Impact on
Manage
Processes
A33
Performance Improvement
Customer Requirement
Information from
External & Internal Environment
Market Analysis Feedback
Reduced Uncertainties
Effectives Business Strategy
Process Satisfaction
Monitor
Impact on
Operate
Processes
Product & Service Development
Customer Satisfaction
Compatitive Advantage
A34
Current Resources & Situations
Monitor
Impact on
Support
Processes
A35
Improved
Process Performance
Process Satisfaction
COMPARISON OF THE MODELS
Michigan Model
Harvard Model
HRM Business Process Model
•Soft HRM
•Hard
•Focus on individual and
organisational
Performance
•Focus on people
•Focus on Business process and
results
•Based on strategic
control, organisational
structure systems for
managing people
•Based on Individual influence,
Work system, Rewards,
Human resource flow
•Based on developing business
objectives to the HRM process and
monitoring business results
•Concentrates on outcomes for
people
•Concentrates on business processes
and outcomes for business
•Normative
•Analytical & Normative
•Normative
•Output focus
•Output focus
•Process focus
•not clear
•not clear
•Systems engineering approach
•Hard HRM
•Concentrates on
managing human assets
to achieve strategic goals
“The Investor in People Standard
P
R
I
N
C
I
P
L
E
S
I
N
D
I
C
A
T
O
R
S
COMMITMENT
PLANNING
c
o
n
t
a
i
n
s
c
o
n
t
a
i
n
s
The organisation is
committed to
supporting
the development
of its people
The organisation has
a plan with clear
aims and objectives
which are
understood
by everyone
People are
encouraged
to improve their
own
and other people’s
performance
People believe their
contribution to the
organisation is
recognised
ACTION
EVALUATION
c
o
n
t
a
i
n
s
Managers are
effective in
supporting the
development of
people
The development of
people is in line with
the organisation’s
aims and objectives
c
o
n
t
a
i
n
s
The development of
people improves the
performance of the
organisation, teams
and individuals
People learn and
develop effectively
People understand
how they contribute
to achieving the
organisation’s aims
and objectives
The organisation is
committed to
ensuring equality of
opportunity in the
development of
its people
Figen Cakar, Center for Strategic Manufacturing, 2000
People understand
the impact of the
development of
people on the
performance of the
organisation, teams
and individuals
S
U
B
P
R
O
C
E
S
S
E
S
A
C
T
I
V
I
T
I
E
S
2ND VERSION OF HRM PROCESS MODEL”
MAKE HRM
STRATEGY
IMPLEMENT
HRM STRATEGY
c
o
n
t
a
i
n
s
MONITOR IMPACT
ON BUSINESS
RESULT
c
o
n
t
a
i
n
s
Set
Objective
c
o
n
t
a
i
n
s
Control HR
Inc.Planning,
Monitor,Utilization
Recruit
Assess
Select
Establish Current
Capabilities
Train, Educate, Develop
IIP - Comprehensive
Plan
IIP _Some coverage
Negotiate
Budget
Set HR Policies
Figen Cakar, Center for Strategic Manufacturing, 2000
Manage HR
Performance
IIP_Some coverage
Manage
Redeployment
IIP-Limited coverage
Negotiations for
Working Condition
Monitor Impact on
Business Strategy
Monitor Impact on
People Satisfaction
Monitor Impact on
Manage Processes
Monitor Impact on
Operate Processes
Monitor Impact on
Support Processes
Contribution
•Clarify Confusion
•Introduce system thinking approach in to the field
•Introduce HRM as a Business Process
•A generic Business Process model for HRM
•Lessons learned the validation and testing
FUTURE WORK
• Finalise detailed process
• Finalise audit workbook
• Test with collaboration companies
• Analyse test results and learn from
experience