STRATEGIC HUMAN RESOURCE MANAGEMENT

Figure 2.2 The Harvard Framework for Human Resource Management

Stakeholder Interests
 Shareholders
 Management
 employees
 government
 unions

HRM Policy

choices

 employee

influence

 human

resource flow

 reward

systems

 work systems

HR outcomes

 commitment

 congruence

flow

 cost

effectiveness

Long – term

consequences :

 individual

wellbeing

 organizational

effectiveness

 social

wellbeing

Situational factors
 workforce
characteristics
 business strategy
and conditions
 management
philosophy
 labour market
 unions
 task technology
 laws and social
values

Source – Beer et al, ( 1984 ) Managing human assets, New York: Free press

The Harvard model has exerted considerable influence over the theory and
practice of HRM, particularly in its emphasis on the fact that HRM is the
concern of management in general rather than the personnel function in
particular.

Walton (1985), also of Harvard, expanded the concept by emphasizing the
importance of commitment and mutuality:

The new HRM model is composed of policies that promote mutuality - mutual
goals, mutual influence, mutual respect, mutual rewards, and mutual
responsibility. The theory is that policies of mutuality will elicit commitment,
which in turn will yield both better economic performance and greater human
development.

The concept of strategic HRM is based on the important part of the HRM
philosophy that emphasizes the strategic nature of HRM and the need to
integrate HR strategy with the business strategy.