HRM Model | the Harvard Model

HRM Model | the Harvard Model

The Harvard Model – A comprehensive HRM model comprises of 6 critical elements of HRM such as:

1. Stakeholders Interests
2. Situational Factors
3. HRM Policy choices
4. HR outcomes
5. Long-term consequences and
6. A Feedback loop through which the yields flow directly into the organization and the stakeholders

The HARVARD Model of Human Resource Management

Stakeholders Interests: At this level, the HR managers challenge is to achieve balance among all the stakeholders. The focus of this element is to ‘compromise’ between the interest of the owners and those of employees. Thus, HR managers are supposed to balance the interests of all stakeholders.

Situational factors: the situational Factors like workforce characteristics, Labour market, laws and management philosophy influences management’s choice of HR strategy inclusion. Hence, HR experts should determine all the situational factors before deciding for any strategic move.  

HRM Policy Choices: This model portrays management as a real actor and capable of making changes in the organization environment in the long run. So, In terms of HRM policy choices management plays a major role in the organization. Besides, management emphasizes the implementation of result-oriented HRM policies.

HR outcomes: Here in this element, HR outcomes are measured in terms of enhanced employee organization commitments, employee competence, and cost-effectiveness. The assumption here is that if a participative environment is available in an organization, employee’s talents can be utilized to the maximum for organizational growth.

Long-Term consequences: the 3 factors namely – individual/employee welfare, organizational effectiveness and societal well-being are interlinked. It is obvious that employee welfare leads to organizational effectiveness and efficiency of all organizations contributes to social well-being.

Feedback loop: the sixth element of Harvard Model. As cited above situational factors impact HRM policy choices further, it is influenced by long term consequences. Likewise, stakeholders’ interest influence HRM policy choices, and in turn, are impacted by long term outcomes.

To conclude, The Harvard Model of HRM is tagged as 'soft' HRM due to its attention towards employee outcomes with an additional concentration on employee well being.