Overview
This lecture explains the Harvard Framework for Human Resource Management (HRM), highlighting its focus on employee well-being, stakeholder interests, and the soft approach to managing people within organizations.
Introduction to the Harvard Framework
- The Harvard Framework is a foundational and influential model in HRM, created by Harvard Business School.
- It is considered a "soft" HRM model, prioritizing employee well-being and organizational commitment over rigid business strategies.
- Unlike "hard" models, it recognizes that people and motivation are complex and variable.
- Employees are seen as stakeholders with their own interests, requiring organizational accommodation.
Key Features of the Harvard Framework
- Emphasizes mutuality: both employees and the organization benefit when the business succeeds.
- HR is the responsibility of all managers, not just the HR department.
- Stresses the importance of employee motivation, engagement, and recognition.
Internal and External Influences
- Internal factors: workforce characteristics, management philosophy, business strategy, working conditions, union influence, and technology.
- External factors: market forces, economic climate, societal values, legal obligations, and stakeholder interests.
- Stakeholders include employees, management, shareholders, unions, government, suppliers, and the local community.
HR Policy Areas
- The four HR policy areas: human resource flow (recruitment, promotion, exit), reward systems (pay and benefits), employee influence (voice and participation), and work systems (job design and structure).
- Policies should align with organizational objectives, employee needs, and stakeholder interests.
- Effective HR policies are coherent, continuous, and not merely reactive.
Employee Influence and Motivation
- Employees play an active role in decision-making and organizational direction.
- Delegating responsibility and authority to employees is based on trust and can enhance engagement.
- Management should ensure employee influence supports organizational objectives.
HR Outcomes and the Four Cs
- The framework aims for four key HR outcomes: commitment (to the organization), congruence (fit between employees and management), competence (skills and abilities), and cost-effectiveness.
- HR policies should promote these outcomes for organizational success.
Long-Term Consequences
- Focuses on individual well-being, organizational competitiveness, and societal benefits.
- Long-term consequences influence stakeholder interests and situational factors, creating a feedback loop.
- Policies should prioritize sustainable positive outcomes for all parties.
Key Terms & Definitions
- Harvard Framework — A model of HRM focusing on employee well-being and stakeholder engagement.
- Soft HRM Model — An approach emphasizing people, motivation, and organizational commitment.
- Stakeholders — Individuals or groups with an interest in the organization's success.
- Human Resource Flow — The movement of employees in, through, and out of an organization.
- Reward Systems — The structure of pay, benefits, and recognition offered to employees.
- Employee Influence — The degree to which employees can participate in decision-making.
- Work Systems — How jobs are structured and communicated to ensure productivity and efficiency.
- Four Cs — Commitment, Congruence, Competence, and Cost-effectiveness in HR outcomes.
Action Items / Next Steps
- Supplement these notes with additional reading on the Harvard Framework.
- Review slides and exercise critical thinking about how internal and external factors affect HRM.
- Prepare examples relating HR policies to employee outcomes for future discussions.