Human Resource Management in Europe - Essay Example

1998; Roderiguez and Ventura, 2003). The difference in perspective on the value of people in organizations and the validity of HRM, particularly in non-Western Countries may be best understood in terms of the concept of locus of human value (Jackson et al., 2003). Jackson et al. (2003) came up with conceptual map of international organization and human resource management in different countries. HRM as a concept emerged in the mid-1980 in the US when two models-the Harvard framework (Beer et al. 1984) and the Michigan Model (Fombrun et al., 1984) were produced.

Harvard model is also known as soft model of HRM / Harvard Map of HRM / multiple stakeholders model, argues that human resource policies are to be influenced by two significant considerations: (1) Situational factors: The internal and external environmental factor of the organizations that include (i) labour market conditions (ii) societal Values (iii) business strategies (iv) technologies (v) managerial philosophies and (vi) market conditions will constrain the formation of HRM policies. (2) Stakeholders interests.

The stakeholders influence the short-tern HRM policies. They include (i) management employees (ii) unions and (iii) govt. agencies. Further, the model classifies HRM policies and practices in to four themes as follows: HR flows, Recruitment, selection, placement, appraisal and assessment, promotion, termination and the like. The Harvard model has existed considerable influence over the theory and practice of HRM, particularly as a result of its contention that strategy is the concern of management in general rather than a personnel function in particular (Armstrong, 1999).

The Michigan Model has a harder, less humanistic touch, holding that employees are resources in the same way as any other business resource. They must be obtained (i) as cheaply as possible (ii) used sparingly and (iii) developed and exploited as much as possible. John Storey (1987) termed it as utilitarian instrumentalism. The hard model of HRM focuses on the crucial importance of the close integration of HR policies, systems and activities with business strategies on HR system to achieve the strategic objectives oh the organization.

This model emphasized the quantitative strategic business aspects of managing the headcount resource, in a rational way (Storey, 1987). The Michigan theorist highlighted the following as being the most important HR issues to achieve such a match. Selection of the most suitable people to meet business needs, Performance in the pursuit of business objectives, appraisal, monitoring performance and providing feed back to the organization and its employee, Rewards for appropriate performance development of skills and knowledge required to meet business objectives.

The essential features of their model are that it is focused on individual and organizational performance is based on strategic control, organizational structure, system for managing people concentrates on managing human assets to achieve strategic goals contributes to human resource