The Standard Causal Model of HRM

 Overview: This model focuses on the causal relationships between HR practices and
organizational outcomes. It explains how HRM practices affect employee attitudes,
behaviors, and, ultimately, organizational performance.
 Key Components:
o HR Practices: These are the activities and strategies implemented by HR, such as
recruitment, training, compensation, and performance management.
o Employee Outcomes: Employee attitudes, such as job satisfaction, motivation,
and commitment.
o Organizational Outcomes: Organizational results like productivity, profitability,
and customer satisfaction.
 Causal Flow: The model suggests that HR practices impact employee outcomes, which
in turn influence organizational outcomes.
 Example: If an organization invests in training programs (HR practice), employees will
become more skilled and motivated (employee outcome), leading to higher productivity
and profitability (organizational outcome).

2. The 8-Box Model by Paul Boselie

 Overview: Developed by Paul Boselie, this model represents HRM as a system with
interconnected components. The 8-Box model identifies eight elements essential for
effective HRM, categorized into two broad areas: HR practices and organizational
outcomes.
 Key Components:
1. HR Practices: Recruitment, selection, training, development, compensation,
performance management.
2. Employee Outcomes: Employee satisfaction, motivation, commitment, and
behavior.
3. HRM Strategy: Alignment of HR practices with organizational strategy and
goals.
4. Performance Outcomes: Individual and team performance leading to
organizational success.
5. Employee Skills: The abilities and knowledge employees gain from HR
practices.
6. Organizational Commitment: The emotional attachment employees feel
towards the organization.
7. External Context: The external environment influences such as laws, market
conditions, and competitors.
8. HRM System: The interrelationship between all HR practices and their alignment
with organizational needs.
 Objective: Ensure that all HR activities work in harmony, contributing to both employee
development and organizational success.
3. The HR Value Chain

 Overview: The HR Value Chain focuses on the sequence of HR activities that

ultimately add value to the organization. It maps how HR activities translate into positive
business outcomes.
 Key Components:
o HR Inputs: This includes recruitment, training, and employee development.
o HR Processes: How HR practices are delivered, such as performance
management and employee engagement programs.
o HR Outcomes: Results of HR activities, such as improved employee
performance and retention.
o Organizational Outcomes: The ultimate value HR adds to the business, like
profitability, competitive advantage, and organizational success.
 Value Creation: The model emphasizes creating a link between HR activities and
business value by focusing on outcomes that drive organizational performance.

4. The HR Value Chain Advanced

 Overview: This advanced version of the HR Value Chain goes deeper into the processes
and focuses more on the strategic integration of HRM with the organization's
objectives.
 Key Components:
o Strategic HR Alignment: Ensuring HR practices are designed in line with
organizational goals and objectives.
o HR Systems Integration: Combining recruitment, training, compensation, and
performance management systems to create a holistic approach to HRM.
o Business and HR Metrics: The model incorporates business-focused HR metrics
to assess the impact of HR practices on business outcomes.
o Outcome Evaluation: Continuous evaluation of the results of HR practices to
assess how well they are contributing to business success.
 Purpose: To create a direct connection between HR practices and organizational strategy,
ensuring HR contributes to competitive advantage.

5. The Harvard Model of HRM

 Overview: The Harvard Model is one of the most well-known models of HRM,
developed by Beer, Spector, Lawrence, Mills, and Walton. It focuses on stakeholder
interests and the long-term consequences of HR policies.
 Key Components:
 1. Stakeholder Interests: Balancing the interests of key stakeholders (employees,
managers, shareholders, and society).
2. Situational Factors: These are external and internal factors like organizational
culture, laws, and competition that affect HR policies.
3. HRM Policy Choices: Decisions made by HR in areas such as recruitment,
training, and compensation.
4. HR Outcomes: Employee commitment, quality of work life, and organizational
performance.
5. Long-Term Consequences: The ultimate outcomes of HR policies, such as
organizational effectiveness, social responsibility, and profitability.
 Objective: To show that HRM must align with stakeholder interests and long-term
organizational goals, rather than focusing only on immediate results.

6. The Fombrun, Tichy, and Devanna Model

 Overview: Developed by Fombrun, Tichy, and Devanna, this model is goal-oriented and
focuses on aligning HR practices with organizational strategy.
 Key Components:
1. Selection: Choosing the right people for the right jobs.
2. Performance: Managing employee performance through clear goals and
evaluation systems.
3. Compensation: Rewarding employees appropriately based on their performance
and contribution.
4. Development: Providing training and development opportunities to improve
employee skills.
 Objective: This model emphasizes the importance of aligning HR practices with
organizational goals to enhance overall performance.

7. The Guest Model

 Overview: The Guest Model, developed by David Guest, emphasizes high commitment
management and the alignment of HR practices with the organization’s strategy to
improve both employee and organizational outcomes.
 Key Components:
1. HRM Practices: High-quality recruitment, training, performance management,
and reward systems.
2. Employee Commitment: HR practices are designed to foster high levels of
employee commitment, motivation, and trust.
3. Outcomes: Improved organizational performance, job satisfaction, and reduced
turnover.
  Focus: The model advocates for employee commitment and suggests that when
employees feel valued, it leads to better performance, lower turnover, and higher
organizational success.

8. The Warwick Model

 Overview: The Warwick Model, developed by researchers from the University of

Warwick, focuses on organizational culture and the contextual factors that influence
HRM.
 Key Components:
1. Internal Context: Organizational culture, structure, and HR practices.
2. External Context: Factors such as market conditions, competition, and
government regulations that affect HRM.
3. HRM Outcomes: Employee behaviors, performance, and satisfaction.
4. Strategic Fit: Ensuring HR practices are aligned with the strategic goals of the
organization.
 Objective: To understand that HRM is influenced not only by organizational strategy but
also by both internal and external factors, which shape HR practices and policies.

9. The Ulrich Model

 Overview: Proposed by Dave Ulrich, this model suggests that HR should evolve to
become a more strategic partner in organizations. It emphasizes HR's role in delivering
value through four key roles.
 Key Components:
1. Strategic Partner: Aligning HR practices with business strategy to drive
organizational success.
2. Change Agent: Managing organizational change and fostering a flexible
workforce.
3. Employee Champion: Focusing on employee needs, engagement, and
development.
4. Administrative Expert: Streamlining HR processes to improve efficiency.
 Objective: To position HR as a key driver of organizational success, emphasizing its role
in strategic alignment, change management, and improving organizational performance.

Conclusion

Each HRM model presents a unique perspective on how HR practices contribute to

organizational effectiveness. They vary in focus, from strategic alignment with business goals
(Ulrich Model, Fombrun Model) to employee commitment and development (Guest Model), and
the balance between stakeholder interests and long-term consequences (Harvard Model).
Depending on the organizational context and goals, these m

The Standard Causal Model of HRM

 Example: Google
o Google uses data-driven HR practices to link employee satisfaction to
performance outcomes.
o Investments in training and development lead to better employee performance and
innovation.
o The model shows how HR practices impact employee behavior, which in turn
affects organizational success.

2. The 8-Box Model by Paul Boselie

 Example: Unilever
o Unilever integrates HR practices like recruitment, training, and performance
management to create a unified HR system.
o Employee motivation and commitment are key focus areas to ensure HR
strategies align with organizational goals.
o The model ensures HR practices support both employee well-being and business
objectives.

3. The HR Value Chain

 Example: Toyota
o Toyota’s HR activities, like continuous training and employee involvement,
directly contribute to high performance and efficiency.
o The value chain connects HR practices to business outcomes, such as operational
excellence and quality production.
o Focus on employee development translates into long-term organizational success.

4. The HR Value Chain Advanced

 Example: IBM
o IBM integrates HR systems with its strategic goals of innovation and growth,
linking employee performance to business outcomes.
o Advanced HR metrics evaluate how HR practices contribute to the company's
competitive advantage.
 o Continuous evaluation ensures HR practices remain aligned with organizational
objectives.

5. The Harvard Model of HRM

 Example: Coca-Cola
o Coca-Cola balances the interests of stakeholders, ensuring HR practices align
with organizational goals and social responsibility.
o Focuses on long-term outcomes such as employee commitment and job
satisfaction, leading to improved organizational performance.
o Stakeholder interests drive the strategic alignment of HR policies.

6. The Fombrun, Tichy, and Devanna Model

 Example: General Electric (GE)

o GE aligns HR practices (recruitment, performance management, development)
with its business strategy.
o High employee performance and leadership development contribute to
organizational success.
o The model emphasizes the link between HR practices and business outcomes.

7. The Guest Model

 Example: Southwest Airlines

o Southwest emphasizes employee commitment through recruitment, training, and
engagement.
o A strong organizational culture enhances employee satisfaction, leading to
superior customer service and performance.
o The model highlights the connection between employee well-being and
organizational success.

8. The Warwick Model

 Example: Shell
o Shell aligns HR strategies with both internal factors (organizational culture) and
external factors (market trends).
o HR practices are tailored to meet the company’s strategic goals and the evolving
energy sector.
 o Ensures that HR contributes to sustainability and innovation within the
organization.

9. The Ulrich Model

 Example: Microsoft
o Microsoft HR supports business strategy by aligning talent acquisition and
development with innovation goals.
o HR plays a key role in managing organizational change, especially during major
transitions.
o The model emphasizes HR’s role as a strategic partner, change agent, employee
champion, and administrative expert.