MBA - HRM Blog 9

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Michigan Model of HRM Concept for an Organization

Introduction

Michigan model or matching model describes hard HRM aspects as this model stresses employee treatments in order to reach organizational goals and objectives. Human resources is considered as a resource for achieving organizational objectives (Tiwari, et al., 2019). This model is introduced by Devanna et al., (1984), Michigan school of business in U.S., and the model projected that HR actions and organizational actions should congruent (Truss & Gratton, 1994).

Figure 1- Michigan Model of HRM (Source: Truss & Gratton, 1994)

According to this model, organization is grounded on its mission and strategies, human resources and structure of the organization. Similarly, political, cultural and economic forces impact for organization (Tiwari, et al., 2019).

 

Michigan model focuses on,
        I.     Hard HRM aspect
       II.    Organizational strategies 
      III.    Organizational resources and external setting/environment 
      IV.    Matching human resources for achieving organizational needs                               etc. (Wysocka & Kesy, 2011)


 

 

Michigan model and Organizational HRM

 

Michigan model by Fombrun (1984) involves with the HR cycle including four components.

        I.      Recruitment and selection

       II.      Performance evaluation

      III.      Reward management

      IV.      Training and development (Cakar & Bititci, 2002).

Figure 2 – The Michigan Model – Human Resource Cycle (Source: Chetty, 2019)

Organizations recruit capable individuals and constantly evaluate their performance and based on the appraisal they provide rewards and development opportunities for employees to achieve high performance to reach organizational objectives. Michigan model is highly applicable for achieving organizational strategic objectives by utilizing employees (Truss, et al., 1997).

 

Limitations

Michigan model treats employee as a resource and employees become demotivated to perform and increase their dissatisfaction and turnover rates. This model does not focus on soft aspect of HRM such as employee motivation, wellbeing, satisfaction etc. (Tiwari, et al., 2019). The, organizations need to incur excessive cost for employee trainings, replacements etc. This mode less focuses on employee motivation and mostly suitable for performance-oriented organizations (Prowse & Prowse, 2010).

 

Conclusion

Michigan model in HRM is largely contributed for organizations to achieve its strategic objectives by effectively integrating organizational strategies and HRM strategies (Wysocka & Kesy, 2011). However, this model less focuses on employee aspect and it may largely impact for organizations in long term such as performance reduction, less efficiency, lose skilled employees, increasing organizational costs etc. (Truss, et al., 1997) Organizations should not merely depend on the HRM aspect of HRM and should concern the soft HRM aspects as well.

 

  

References

Cakar, F. & Bititci, U. S., 2002. Modelling in the HRM business process. International Journal of Human Resources Development and Management, 2(3), pp. 223-248.

Chetty, P., 2019. Project guru. [Online]
Available at: https://www.projectguru.in/models-human-resources-management-hrm-practices/[Accessed 11 November 2021].

Prowse, P. & Prowse, J., 2010. Whatever happened to human resource management performance?. International Journal of productivity and performance management, pp. 1-10.

Tiwari, V., Srivastava, S. & Kumar, D., 2019. Adoption of HRM practices: A practical model-case study of a hotel. IOSR Journal of Business and Management, 21(4), pp. 59-63.

Truss , C. & Gratton, L., 1994. Strategic human resource management: A conceptual approach. International Journal of Human Resource Management, 5(3), pp. 663-686.

Truss, C., Gratton, L., Hope-Hailey, V. & McGovern, P., 1997. Soft and hard models of human resource management: a reappraisal. Journal of management studies, 34(1), pp. 53-73.

Wysocka, I. & Kesy, M., 2011. Michigan Model and the Human Resource Management Strategy. Organization, 8(3), p. 125.

 

 







Comments

  1. Vishwa GunarathnaDecember 3, 2021 at 10:26 PM

    Dear Thushara thank you for sharing the flow chart along with information about the michigan model. Many HR aspirants come across theory on such terms but fail to understand in greater detail. The way you have presented the facts in this blog makes it very easy and understanding.

    ReplyDelete
  2. Chenaka HettiarachchiDecember 3, 2021 at 11:28 PM

    Obviously, this Michigan model concentrates on hard HRM. The advantage of the model lies in its dedication to market performance and organizational growth. Excellent explanation, and well done for sharing.

    ReplyDelete
  3. Nuwansiri RathnayakeDecember 6, 2021 at 3:02 AM

    An very useful article. Michigan model is useful and good concept to practice in an organization. how ever the In hard HRM, managers focus on the profits and treat employees as sources of business, no different from machine and tools. While in soft HRM, employees are considered as valuable assets and sources of competitive advantage for the organization (Collings & Wood, 2009).

    ReplyDelete
  4. Sanjaya BandaranayakeDecember 6, 2021 at 4:32 AM

    Good article. Michigan model focuses on hard HRM. I have a doubt how well michigan model will work with today's competitive job market. I think Harvard model or soft HRM model is the best approach for today's business world.

    ReplyDelete
  5. KAMAL C. DIVITOTAWELADecember 8, 2021 at 6:52 AM

    One of the key benefits of a rigorous HRM approach to employers is that you gain maximum control over your business. And, depending on your industry, that means you can be more rigorous in your approach. And that means you can adopt more profitable policies, with faster decisions between managers. That's the name, after all - it's a "harder" approach to business.

    ReplyDelete
  6. Sandya December 8, 2021 at 8:34 AM

    Good article lot to learn.the 4 component you have mentioned in your article is important in any organization.

    ReplyDelete
  7. Asitha DDecember 13, 2021 at 5:28 AM

    Michigan model described the job stress of employees. As for the Michigan model, it is important to manage the job stresses of employees in order to enhance the performances of employees.

    ReplyDelete
  8. Eranda KumaraDecember 15, 2021 at 11:02 PM

    In clear, the Michigan model (Fombrun, Tichy and Devanna, 1984) focuses on hard HRM. The advantage of the model laid on its attachment to market performance and organizational growth (Thierry, 2018)

    ReplyDelete
  9. Shanaka herathDecember 17, 2021 at 8:37 AM

    According to J. Grodzicki, human capital is represented by the whole of human values that are the effect of its process of environmental adaptation and own traits, and the process of education in the educational system, as well as human capital as the values resulting from the sum of expenditure on educating individuals, which together make up the educational potential of society. Michigan model clearly describe HRM concept. Thanks for share worth article.

    ReplyDelete
  10. Anuruddha MBA HR BlogDecember 18, 2021 at 11:34 PM

    Good article and thank you for sharing Michigan Model of HRM Concept for an Organization.

    ReplyDelete

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