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HRM Model

The Michigan model focuses on strategic human resource management that aligns HR practices with business needs. It views HR as a reactive function aimed at matching employees' skills to organizational requirements. The model depicts the organization at the center of a triangle surrounded by internal and external factors that influence business activities. HR practices like selection, performance management, rewards, and development are designed to enhance employee performance in support of business objectives. While it aims to control costs, the Michigan model may demotivate employees by not considering their development needs and stakeholder interests.

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888 views6 pages

HRM Model

The Michigan model focuses on strategic human resource management that aligns HR practices with business needs. It views HR as a reactive function aimed at matching employees' skills to organizational requirements. The model depicts the organization at the center of a triangle surrounded by internal and external factors that influence business activities. HR practices like selection, performance management, rewards, and development are designed to enhance employee performance in support of business objectives. While it aims to control costs, the Michigan model may demotivate employees by not considering their development needs and stakeholder interests.

Uploaded by

sakshi
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We take content rights seriously. If you suspect this is your content, claim it here.
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HRM MODEL

MICHIGAN MODEL
The Michigan model by Fombrun (1984) explains strategic HRM that focused on management, professional groups, and the new labor
force. It is also known as the “Michigan Model” or “ Best-Fit” approach to human resource management. It limits the role of HR to a reactive,
organizational function and under-emphasizes the importance of societal and other external factors

The Michigan model focuses on hard HRM:


1) Hard approach to HRM
2) Focuses on business strategy
3) Organization‘s resources and the external environment
4) The model is inhumane/ Important to Business success
5) “ Matching” employees to business needs
6) The Role of HR department
MICHIGAN MODEL

The Michigan Model is presented as a triangle, within the triangle the


organization or the firm is the canter. The organization is central to all
business activities, other factors are secondary.
The triangle represents internal and external factors that influence the
business. Each factor is interlinked and have an influence over business
activity.
 The management decide organization mission, strategy and
structure.
 HRM is then designed and integrated to meet the needs of the
business.
 All internal factors must effectively respond to the changing external
environment, political, economic and culture.
HRM is an important element in the model , it design and application is
dependent on the business.
THE MICHIGAN MODEL-THE HUMAN
RESOURCE CYCLE

The Michigan Model The model is based on the following key principles;
1. Selection: Recruiting people who are capable to do the job that has been
designed by the structure. Matching human resources to business needs/jobs.
2. Performance and appraisals: Performance is the central function of all HR
management. Appraisal is designed to link performance to business objectives.
3. Rewards: Employee motivation linked to performance and high level
rewards. A recognition of achievements.
4. Development: training and development opportunities to enhance current
performance and their competency. It is also feeding back if there is a big need
for development.
The key element in the human resource cycle is performance, all other activities
are focused on enhancing employee/organization performance. It’s trying to

ensure that the performance of the individuals meet the company requirements .
A D VA N T A G E S A N D D I S A D VA N T A G E S
MICHIGAN MODEL

ADVANTAGES:
 Cost Affective: There is no emphasis on employee development or training . There are minimal cost involved in management and
monitoring of employees.
 Faster decision making: One way communication, therefore decision making is senior management level. Employees are not given
authority to contribute to decision making.

DISADVANTAGES:
 Demotivating for employees: Employees are not valued, no consideration to their skills , capabilities or development.
 High staff absenteeism and turnover: employee dissatisfaction leads to high turnover.
 Ineffective recruitment practices: recruitment is based on employee capability to do the job.
 This model ignores the stakeholder interests, and situational factors. The model refers to context in terms of Political, Economic and
Cultural forces.
REFERENCES

• http://paulooliveiramartins1967.blogspot.com/2012/11/unit-1-michigan-model.html

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