Talent shortage is key issue in all the companies this era. Human Resource Model (HRM) plays a major role in talent development strategies.There are few HRM models in business environment, even though, there are two models commonly use as HRM models in businesses today aside from other models that has been theorized and formulated by some academics.
Soft version of HRM which is treating employees as valued assets. This is called Harvard model, stresses the human element in the human resources formulation and is considered as the a soft variant in HRM. It is offered by Michael Beer.
Hard version of the HRM which is the Michigan model, holding that employees are resources in the same way as any other business resource. The Michigan model is also known as the a matching model or a best-fit approach to human resource management. It is introduced by Fombrun, Tichy and Devanna, 1984
Michigan HRM model (Hard HRM)
Hard HRM perspectives human resources are a factor of production, an expense of doing business to achieve and meet business goals. Human resources are views as passive.
This model is combination of internal human resource policies with external business strategy. It will consider mostly market performance, organizational growth, and cost minimization for employees were regarded as any other resources to be obtained cheaply. This module focuses on mainly business not on human resources.
Harvard Model (Soft HRM)
This model mainly focuses on treating employees as valued assets. Human resources are considered as skill development, collaboration etc.
Employee influence will delegate levels of authority, responsibility, and power
Human resource flows into the organization are used for recruitment, selection; through the organization, placement, promotion, out of the organization as termination.
Selection based on competence to get best employee fit for the jobs. Employee influence will make employee's job satisfaction. Reward target to attract and motivate the employees and to keep talented employees for a long period.
Based on the definitions and explanation of each model, it can be concluded that the soft model is more advisable to be practiced by industries within the service sector while the manufacturing sector would be better to use the Michigan Model of HRM for increased production.