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Executive Summary

Strategic human resource management may be used in order to establish the most acceptable implementer of human resource. The main aim of Harvard model of HRM is to resolve problem related to personal management with the use of HRM policies so that employee’s involvement and skills can be improved and devolved according to the organization practices. The Guest model is the best suited model according to today strategic human resource practice because it is supported by new thinking that incorporates a strategic aspect where HRM managers have adopted compliance, and commitment based model as opposed to the traditional control based model. In this report Harvard model of HRM was discussed and it was found that according to today scenario, organization should use the Guest Model for their better working environment and growth.

Table of Contents


Harvard Model of HRM

Selection of SHRM Model and its Justification




This report aims to analyze the Harvard model of HRM. Strategic management is arguably one of the core duties that HR manager is expected to deliver under the SHRM model. There are four models of HRM namely; Fombrun, Harvard, Guest and the Warwick Model. The essence of strategic management is based on five components. These are organizational mission and objectives, industry environmental analysis, SWOT analysis, strategy implementation, performance evaluation and a component for feedback. These five components are essential for designing the types of strategies that HR manager needs to develop for the organization (Stewart & Brown, 2019). Some of the types of strategies undertaken by HR manager include retrenchment, stability, growth and international strategies among others. However, the report will mainly focus on Harvard model of HRM and it will also identify the best suited model according to today strategic human resource practice.

Harvard Model of HRM

Harvard Model takes holistic approach towards the human resource and it include different levels of outcomes. It is a theoretical framework which is commonly used by organization for the practices and application of HRM. The Harvard model of HRM was developed in 1992 by Boxall and Beer. The main aim of this model is to resolve problem related to personal management with the use of HRM policies so that employee’s involvement and skills can be improved and devolved according to the organization practices (Khan, 2016). This model is considered as one of the significant model among the HR models. According to Harvard model, all organizations should record the performance of each and every employee in order to carry out efficient human resource management. For example, rewarding employee is done for their good performance. It consists of six components namely; stakeholder interest, situational factors, HRM policies, HRM outcomes and long term consequences.

HRM has got two features according to this model which includes; first is that it aligns the competitive strategies of an organization with the HR policies which helps the line manager to respond more efficiently. Secondly, HR policy mission helps in reinforcing recognition and reward process by shaping human resource activities (Morgeson, Brannick & Levine, 2019). The Harvard model helps to conceptualize the relationship between organization policy and employees in an effective manner. The following is a representation of the Harvard model that illustrates the necessary interventions needed by the HR in order to align employee’s objectives with the organization’s goals which can be used as an ideal framework of employee management.

Flow chart of The Harvard Model of HRM

Figure 1: The Harvard Model of HRM

The six components of the Harvard model are discussed below.

The Stakeholders interest: The model also explains how the stakeholder interest changes according to the situation of the organization’s business. It recognizes the interest of stakeholder as well as that of employees. It is the role of HR manager to balance the interest between them. The HR manager manages the problems related to lesser accountability of employees towards the organization, lack of autonomy at workplace, inappropriate working conditions, reduction of the wages, and increasing workload of employees (Kaufman, 2019). The interest of stakeholder is developed through effective communication between various groups which include unions, communities, government, management, employee groups, and shareholders.

The Situational factors: HR strategies of management are influenced by these factors. These factors include aspects such as values which are being created in society, the rules and regulations which are being set by the labor market, philosophy of management, workforce characteristic, and union based approaches (Garavan, McCarthy & Morley, 2016). In addition, connection between product market and socio cultural aspects is also demonstrated into this factor. These factors are analyzed by the HR manager so that the gaps that restricts the organization growth can be bridged. It helps in marinating and building a healthy working environment for employee in order to increase the productivity and efficiency of performance. By combining long term consequences, HR outcomes and policies, the HR manager can apply pluralist approach to management (Anandarajan & Simmers, 2018).

HRM policies: The policies are made according to the management requirement in order to carry out systematic work according to the terms of HRM. The policies and practices are based on improving the performance of the employees as well as to motivate them through recognition and reward process. The employees can be rewarded extrinsically as well as intrinsically. The HR policies involves creating bettering working environment and it contributes to motivation factors. Providing role or responsibility to employee in which he/she has full knowledge and required skills is also a process of motivating employee. Moreover, the employees can be trained and guided in order to improve their skills. The best way to maintain the employee satisfaction is to reward them for their exception performance and include them is decision making. It further helps the organization to improve its decision making process (Rees & Smith, 2017). Most of the researches has demonstrated that engaging employee in decision making improves production and efficiency. These policies also help the management to use the capabilities and skills of employee to the fullest as most of the organization lacks to use the employees having multiple skills. The policies also contribute to environmental parameters and organizational analysis.

HRM outcomes: Human Resource Management practices contribute to the success of companies. It has grown overtime and presently acts as a backbone of most organizations ranging from small and medium sized enterprises, SME, to large corporations. It serves as a guarantee warrantying competitive advantage for most organizations. Major progress is being addressed in terms of planning and implementing functional Human Resource Management systems to accomplish business success (Bailey, Mankin, Kelliher & Garavan, 2018). Reward schemes are activities or practices which enables an organization to understand the motivational factors of its employees and design plan based on these understandings. Detailed job description and performance standards are outlined to assist in the analysis of work and rewarding of employees for growth performance. Factors such as identifying key performance areas and establishing annual objectives, identifying major attributes for effective performance, regular or periodic review of performance, discussing with the employee and identifying the training and development needs helps in better growth of the organization. Effective HRM also results in planning, designing and implementation of effective recruitment and selection plans. This is because such structures positively link to a company’s overall performance (Boon, Eckardt, Lepak & Boselie, 2018).

Long term consequences: It includes individual welfare, organizational effectiveness, and societal wellbeing. Managers use influence tactics to inspire their employees to deliver optimally. Influencing the employees’ performance involves several management practices, which may include learning and development. The process leads to the effective management of individuals and teams, which translates into improved performance for the organization. Individual employees or teams have to be responsible for the continuous development of their service delivery, behavior, and skills. Therefore, influence is a long-term strategic process, which aims at developing an appropriate culture that connects individuals with long-term goals. Effective employee management creates a collaborative approach that influences the individual performance, development, and goals of an organization (Bratton and Gold, 2017).

It pushes human recourses managers to come up with ways of managing the working relationships in the organization as well as improving their performance and that of the employees. Human resource managers can use various methods to influence their employees. Logical persuasion involves laying out an argument based on the available data. In inspirational appealing, the manager links the desired results to specified values, which are honored by the team. In consultation, managers know what to do, but they consult with staff members on how to do it. Managers can also employ collaboration as a way of influencing their staff members. In this case, they offer assistance and work with the employees to achieve the desired goals (Longoni, Luzzini & Guerci, 2018).

Selection of SHRM Model and its Justification

Strategic human resource management is not a simple process as it keeps on evolving over time. The concept does not have an absolute definition since opinions about it vary between various scholars and analysts. However, one thing that remains clear is that the concept is essential for improved business performance. It can be regarded as a strategic approach to human resource management links human resource to the future plans and directions of an organization (Ruan & Liu, 2016). Basically this implies that the strategic HRM seeks to ensure that resources are matched with organizational future needs by concerning itself with long term issues relating to employees, organizational culture, values, and commitments. As discussed before there are four models of SHRM namely; Fombrun, Harvard, Guest and the Warwick Model. As per the current scenario, the best among the above four is the Guest Model of SHRM.

Flow chart of The Guest Model of HRM

Figure 2: The Guest Model of HRM

The Guest Model of SHRM is the best suited model according to today strategic human resource practice. It is because it consist of all the factors that a SHRM should consider. It includes financial outcomes, HR strategies, HRM outcomes, Performance outcomes, Behavior outcomes and HRM practices (Dhand & Dhameja, 2020). The Guest model possess various advantages over other HRM models, which makes it more effective and feasible. It is an employee base model as well as it follows a process which results in better outcomes for the management of the organization. The importance of this strategic human resource management is that it serves to lay emphasis on the vital aspects that ought to be looked at in the process of setting up comparisons that may be evident between the strategic goals of the organization as well as the policies that have been formulated that govern the principles of human resource. The main aspects that the Guest model of strategic human resource management seeks to address include integration as well as coordination of the activities that are encompassed in various practical areas that exist in the structured framework of any given business. This is done to achieve the long-term organizational goals of the organization (Sanders & Yang, 2016).

It involves designing as well as implementation of inner policies that are regarded consistent and the practices that make certain that the capital in form of humans that an organization forms the core of the success of the organization. In the present situation where all of the institutions in the field of business are seeking to make profits within the challenging economical situations against the large organizations as the competition, all of the organizations are seeking to keep their heads above the water. They can attain the ultimate goal in business effectively and efficiently through the Guest model of HRM (Kamala & Chandra, 2020).

This model of SHRM lays emphasis on the cooperation of all of the activities encompassed in the aims of the strategic targets, which are the focus of the organization. Strategic human resource management may be used in order to establish the most acceptable implementer of human resource. Moreover, it is important to carry out performance appraisal concerned with determining how well employees are doing their job, communicating that information to employees, agreeing on new objectives, and establishing a plan for performance improvement. The Guest model carry out the performance outcome according to the norms, as well as culture of the organization in a bid to ensure that the workers embrace the values of the firm. The most important ability of this model is that, the human resource management team formulating a plan will stick to it, when it come to the process of recruiting and selecting candidates for their organizations (Milliman & Clair, 2017).

Another positive outcome of this model is that during crisis when scrutinized from the HR’s perspective is that the concerned department can reduce its spending on areas, which hardly matters to the organizational good. Economic hiccups and other characterizing crisis render most organizations into corrective measures. Economic crisis and its provisions are rampant phenomenon globally. There are lucrative strategies set to ensure that HR departments in various organizations handle the situation with due positivity. From this context, there has been a massive need to ensure that the concerned organizations develop appropriate structures that enhances their business growth. The Guest Model of HRM will ensure all the needs related to employees and organization and it is the best suited model according to today strategic human resource practice (Brewster & Hegewisch, 2017).


Human resources are the most important resources of an organization. HRM and its development helps organizations achieve efficiency in task performance as well as objectives as laid down in their mission and vision. It can be concluded that the report has discussed the Harvard Model of HRM. The Harvard model of HRM was developed in 1992 by Boxall and Beer. The main aim of this model is to resolve problem related to personal management with the use of HRM policies so that employee’s involvement and skills can be improved and devolved according to the organization practices. The report has also identifying the best suited model according to today strategic human resource practice. The model identified was Guest model of HRM. The Guest model is supported by new thinking that incorporates a strategic aspect where HRM managers have adopted compliance, and commitment based model as opposed to the traditional control based model. Though the method is still in use in a number of organizations, the concept of Guest model of HRM has been adopted by many organizations in the 21st century. Strategic human resource management is crucial when it comes to ensuring the rapid enhancement of the organization as well as the success of the careers of the employees.


Anandarajan, M. & Simmers, C. (2018). A Global Perspective. The Internet of People, Things and Services: Workplace Transformations.

Bailey, C. Mankin, D. Kelliher, C. & Garavan, T. (2018). Strategic human resource management. Oxford University Press.

Boon, C. Eckardt, R. Lepak, D.P. & Boselie, P. (2018). Integrating strategic human capital and strategic human resource management. The International Journal of Human Resource Management, 29(1), pp.34-67.

Bratton, J. & Gold, J. (2017). Human resource management: theory and practice. London: Routledge.

Brewster, C. & Hegewisch, A. eds. (2017). Policy and practice in european human resource management: The Price Waterhouse Cranfield survey. Taylor & Francis.

Dhand, S. & Dhameja, S.K. (2020). Impact of HR practices on organization performance: Review of literature. TEST Engineering & Management, 82, pp.13670-13675.

Garavan, T.N. McCarthy, A.M. & Morley, M.J. eds. (2016). Global human resource development: Regional and country perspectives. London: Routledge.

Kamala, N. & Chandra, M. (2020). A Study on The Factors Influencing Hrm Practices In Manufacturing Industries In Tirunelveli City. Our Heritage, 68(1), pp.5412-5417.

Kaufman, B.E. (2019). Managing the human factor: The early years of human resource management in American industry. United States: Cornell University Press.

Khan, M., (2016). Harvard Model of human resource management: In need of the stakeholder theory? Available at: http://eprints.lincoln.ac.uk/id/eprint/23122/\

Longoni, A. Luzzini, D. & Guerci, M. (2018). Deploying environmental management across functions: the relationship between green human resource management and green supply chain management. Journal of Business Ethics, 151(4), pp.1081-1095.

Milliman, J. & Clair, J. (2017). Best environmental HRM practices in the US. In Greening People (pp. 49-73). London: Routledge.

Morgeson, F.P. Brannick, M.T. & Levine, E.L. (2019). Job and work analysis: Methods, research, and applications for human resource management. Sage Publications.

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Ruan, X. & Liu, S. (2016). Application of Accounting in Human Resource Management. In 6th International Conference on Electronic, Mechanical, Information and Management Society. United States: Atlantis Press.

Sanders, K. & Yang, H. (2016). The HRM process approach: The influence of employees’ attribution to explain the HRM‐performance relationship. Human Resource Management, 55(2), pp.201-217.

Stewart, G.L. & Brown, K.G. (2019). Human resource management. John Wiley & Sons.

ZENG, Q.X. & Liu, H.U. (2017). A Study on Strategic Human Resource Management and Sports Organization Performance. DEStech Transactions on Economics, Business and Management, (icem).

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