HRM Models- Definition, Types with Advantages and Disadvantages

HRM Models- Definition, Types with Advantages and Disadvantages: An HRM model can be defined as the strategic scheme of a company created to assist the administration. It is created for improving the business functioning of human capital. They are very useful for adding value to the company and influencing the HR department.

Also See: Warwick Model of HRM: Meaning, Elements and Advantages

The main thing targeted by such approaches is empowerment and motivation in the department. There are hundreds of questions received by our company where people have asked about different HRM models.

Also See: Guest Model of HRM with Diagram

So, our team has dedicated a post completely to this topic to clear all readers’ doubts. Have a look at the full article HRM Models- Definition, Types with Advantages and Disadvantages and understand this prospect in detail.

HRM Models- Definition, Types with Advantages and Disadvantages

Although there are many different HRM models, few of them outsmart others in terms of effectiveness. We will explain top HRM models that every HR professional should learn for better operation.

Harvard HRM Model

The model that has completely changed the landscape of HRM is Harvard that was created in 1984. It was a terrific model created by a team led by Michael Beer at Harvard University. We all know there is a solid pressure on the human resource for completing the goals within the stipulated time. The major components of this model are stakeholder interests, situational factors, HRM outcomes, HRM policies, and long term consequences.

Also See: Fombrun Model of HRM

If we follow this model, there will be a strong correlation between stakeholder interests and situational prospects. The main motive of this model is to shape the HRM policies adequately.

Advantages of Harvard Model

• Understand the interests of various stakeholders in the company for better management.
• Showcases the importance of trade-offs, irrespective of nature between the interests of stakeholders and employees and different company groups.
• This model broadened the context of HRM, including employee influence, company’s operation, and related supervisory rules.

Disadvantages of Harvard Model

• This model lacks exact advice for creating strategies effectively.
• Not suitable for the government sector

Also See: Contextual And European Model Of HRM

The ASTD Competency HRM Model

The second model we want to mention is the ASTD Competency model, whose main motive is to create a strategy for laying out performance to tackle different descriptors. The American Society created it for Training and Development in 2004, but there are few modifications made in the model.

The main motive of the ASTD Competency Model is to find what competencies need to be learned by individuals to achieve growth in the field of their choice. The idea of certain foundational competencies like business & management, interpersonal, and personal things are categorized in this model. 

Also See: Standard Causal Model Of HRM: Definition, Features, Process

Advantages of the ASTD model

• It is greatly helpful in boosting productivity and completing the goals of the company.
• Introduces a range of expertise like social learning, employee performance, and coaching.
• Target the effective growth of the employee in the company.

Also See: Importance of Motivation in HRM?

Disadvantages of ASTD Competency Model

• Few complain it affects the decision making of higher authorities that makes it inappropriate to use in the long run.
• Employees have to refresh their skill sets consistently.

The 8 Box HRM Model

Paul Boselie creates the 8 Box Model for displaying various external and internal characteristics that affect the effectiveness of the HR department’s operations. There are lots of factors that complete the company’s work. This model is created to showcase these factors and use them for better operation. If someone talks about skill shortage, the things like recruiting, hiring, and sourcing will get affected greatly.

Also See: 5p Model Of Hrm: Meaning, Purpose With Diagram

On the other hand, the number of workers will be increased when they are available in abundance. The main things included in this HR model are intended practices, HR practices, perceived HR practices, and HR outcomes. There are tremendous competitive advantages offered by the HR model for completing the important goals.

Also See: Storey Model Of Hrm: Definition and Components

Advantages of 8 Box Model

• It showcases the thinking of HR management about training and recruiting in the company.
• The intentions of the HR department are clearly described in this HR model.
• The cooperation between the general manager and HR department is made strong in the 8 Box model.
• It helps achieve the company’s important HR goals, like flexibility, legitimacy, cost-effectiveness, etc.

Disadvantages of 8 Box Model

• The cost of running different operations is pretty high in large enterprises making it inconvenient for small companies.
• There is a chance that employee’s reactions might not offer enough reliability.

The Ulrich HRM Model

The Ulrich model is used for completing different HR functions in different roles like change agent, administrative expert, strategic partner, and employee advocate. Instead of targeting processes and functions, it focuses on the employees and what roles they will play in the future.

Also See: Employee Motivation- Definition, Importance, Techniques, Quotes

It was developed by Dave Ulrich, the father of modern HR. There is a great debate on the effectiveness of this model, but it has created many milestones in the history of HRM. It is specially created for organizing HR functions in a better way.

Advantages of Ulrich model

• The Ulrich model can completely change the landscape of business and has even performed this thing for two decades now.
• It serves the talent convincingly for boosting their productivity and increasing their experience.
• This model convinces the HR professionals for supporting a company having tons of competition.
• It encourages HR to create a strategy that justifies the department’s performance.

Disadvantages of Ulrich Model

• Implementing this model demands lots of patience that very few have these days for surviving in this community.
• This model is proactive in nature that most employees might not like in the long run.

The HR Value Chain Advanced

The last model we want to mention in this post is the HR Value Chain Advanced that displays the performance of the company in the balanced scoreboard. For those who don’t know, the balanced scoreboard is a performance strategy tool used to track staff activities adequately.

Also See: Human Resource Development (HRD): Definition, Process, Functions

According to this model, the main performance indicators should be contained in terms of financial approach and customer perspective. These things are integrated into the HR value chain for better alignment. The main motive of this model is to showcase the importance of HR in the business.

Advantages of HR Value Chain Model

• It let the higher authorities understand what HR authorities are doing for the company.
• This model is greatly useful for finding out whether there are outdated systems in the HR department.
• Include many key indicators that can be very useful from the financial perspective.
• Works perfectly well for boosting the efficiency to a different level.

Disadvantages of HR Value Chain Advanced Model

• It focuses too much on the smaller details, due to which the time to show results greatly increases. It is the main reason many companies opt to not using this strategy at all.
• Losing sight is quite easier considering the broad perspective of this model.

There is no shortage of HRM models, but very few can effectively perform the job. These five HR models have proved their effectiveness and succeeded in serving tons of companies. Human resource is a very exclusive department that needs to work very convincingly for the welfare of an organization.

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Also See: Sustainable HRM Model: Meaning, Strategies and Benefits