In chapter one they describe the models of human resource management. There are five major HRM models. First, is The Fombrun, Tichy and Devanna model, which use four key components to increase organizational performance. The components are selection, appraisal, development, and rewards. The next model is The Harvard model, which is offered by Beer et al. It has six basic components which are: situational factors, stakeholder interests, HRM policy choices, HR outcomes, Long-term consequences, and a feedback loop where the outputs go to the organization and the stakeholders. The third model is The Guest model. David Guest demonstrates in his model that HRM differs from personal management. The key components in his model are: an HR strategy, a set of HR policies, a set of HR outcomes, behavioral outcomes, a number of performance outcomes, and financial outcomes. The next model is the Warwick model is similar to the Harvard model but it goes more in depth by focusing on its key characteristics. The main elements of this model are: outer context, inner context, business strategy content, HRM context and HRM content. The last model is the Storey model. It has four main elements, which are: beliefs and assumptions, strategic aspects, the role of line managers, and key levers. In this model, Storey believes that there are differences between “personnel and industrials” and the HRM model by making an “ideal type”. Strategic Management is a process used by corporations to help them determine the long term productivity with managerial decisions and actions. Both these models and Strategic Management are made to help improve the productivity of businesses.
The model that best represents a strategic approach is the integrative model of human resource strategy. It is the most strategic because it takes the strengths of the control-based model and the strengths of the resource-based model and combines them. The control-based model is used to supervise and control employee role performance. This means that managers have to come up with a system to ensure their workers are working to the best of their capabilities and are satisfied at the same time. It is more focused on managerial control. The resource-based model is more focused on the reward-effort aspect. They see their employees as an asset instead of thinking of them as a variable cost. The integrative model uses both of these ideologies and uses them in one model. This model has two main dimensions. It uses acquisition and development and locus of control. Acquisition and development means the company can either develop their employees or go our and acquire them from other companies. Locus of control focuses on monitoring employees. The main reason the integrative model is more strategic is because of its four ideal types of dominant HR strategy. They are: commitment, collaborative, paternalistic, and traditional. These four ideals break down the main points of the first two models. Commitment is focused on the outcome control and developing employees internally. Traditional is used for more process based controls and external recruiting of ability. Collaborative is basically outsourcing work. It is based on subcontracting work to people outside the company and evaluates the outcome. Paternalistic takes care of their employees. It offers opportunities for their employees to learn and be promoted by complying to the process-based control.
There are three HRM approaches to organizations operating internationally. They are: adaptive, exportive, and integrative. The First, an adaptive IHRM orientation is where each affiliate of the parent has its own HRM system. This is to help the firms be more aware of the local culture. This orientation is more focused on differentiation rather than integration because it needs to know the local environment and each environment is different. A lot of the top manangers of corporations will hire local HR practitioners who know...