Harvard Model of HRM Definition

The Harvard Model of HRM, in simpler words, would be referred to as a strategic plan assisting an organization in using its human resources against its overall vision. This model helps businesses in achieving their goals with much efficiency.

Way back in 1984, Harvard Business School developed a model that can be used to simplify human resource management. It went on to be known as the Harvard Model of HRM. Soon after, it became an effective technique that helped organizations utilize their resources better and achieve results at super-fast speed.

Let''s get inside and understand everything about the Harvard model of HRM.

The Harvard Model of Human Resource Management treats employees as an asset, not a liability or cost.

It can be said that organically interwoven together have been the human resource policies, the employees, and organizational strategies aimed at achieving success; where each policy and practice would complement others in achieving the organization''s goals.

These are situational factors, stakeholder interests, HR policy choices and the situational factors net of all stakeholder interests.

Considering that the business environment is nowadays significantly more complex, dynamic, unpredictable, and cyclical, the Harvard model, on those grounds, is probably sometimes wise and reasonable, to avoid over-theoretical or formulaic approaches.

The Harvard Model of Human Resource Management encourages a strategic, holistic, and flexible approach to all of the various functions of HRM.

Why is the Harvard Model Important?

The Harvard HRM model is meant for application in order to communicate and understand from different areas and hierarchies. It is designed to build trust and confidence between the employees and the management, converting an office into an affirmative place where everyone has the opportunity to succeed. This is a holistic approach: according to the model, HR policies and long-term planning are supposed to benefit all the parties involved. Not only should these policies take the interests of the stakeholders into consideration, but they should also be made in consideration of the specifics of the situation, according to the model.

Key Elements of the Harvard Model

Here are the five elements of the Harvard model you need to know:

• Situational Factors: Situational factors are both inside and outside work, and they influence how people do their jobs. The Harvard modeling of human resource management provides that you should consider things outside your firm about the economy, the job market, new technologies, the law, public policy, and government decisions, and your competitors. The internally based situational factors encompass the business plan, the organization''s culture, and structure. You should think about both sets of factors properly when you are making any HR policies.
• Stakeholder Interests: The Harvard Model says to look at lots of different people and what they want whenever HRM policies are being made. Every HRM process includes internal management, labour, the community and the government. They are interested in what decisions are made, and what the outcomes are. Consulting with the proper people in the company is invaluable to ensure that the HR plan is a comprehensive one. And it''s also a good way to make sure that it is equitable and to not infringe on the rights of anyone impacted. Their input and a thoughtful consideration of what they say, and think, is very important for this reason.
• HRM Policies: Human resource policies are plans emanating from the strategy and operation of the organization. These policies are designed to make sure that the company does well in such areas as recruitment, pay, training, and development. They can also be there to make sure that the company is operating within the confines of the law, and have an arm to rest on where structure and process are concerned. Besides, they must be able to change and adapt as the company''s needs change along the way.
• Results of HRM: There are four HR outcomes, 4Cs, which good HR practice enables. The Harvard model is premised on these:
  • Commitment: A vow or an agreement to contribute to an organizational objective.
  • Congruence: The proper management of the people, their jobs and consequently the organization.
  • Competence: Development of individual skills and the retention of competent employees.
  • Cost effectiveness: Cutting costs and ensuring that the workforce is content and motivated.

Long-Term Effects

According to the Harvard model, well executed HRM practices can have a long-lasting impact on a company that can change the whole ball game. For instance, engendering good HR practices calls for giving the workers a sense of engagement, happiness, and health, and hence high productivity for profitability. It can also create a peaceful workplace where individuals respect one another, genuinely believe in one another, and share values. This is an easier way to attract and retain top talent.