Strategic Human Resource Management: Fombrun and Beer Models Analysis

This report provides a critical evaluation of two prominent strategic human resource management (SHRM) models: the Fombrun model and the Beer model (also known as the Harvard model). The report begins by defining human resource management and its strategic importance, then delves into a detailed analysis of each model. The Fombrun model, with its focus on selection, development, appraisal, and rewards, is examined for its strengths and limitations, particularly its simplicity and potential oversight of crucial factors. The Beer model is then explored, highlighting its comprehensive approach encompassing situational factors, stakeholder interests, policy choices, and long-term consequences. The report acknowledges the Harvard model's broader perspective but also notes criticisms regarding the clarity of its causal chain. The core of the report involves a comparative analysis of the two models, with a justification for which model is more suitable and relevant in contemporary strategic human resource practices. The report considers the factors like employee motivation, retention, and overall organizational effectiveness. The report concludes by providing a reasoned argument for the preferred model based on its ability to address the complexities of modern business environments.

Running head: STRATEGIC HUMAN RESOURCE MANAGEMENT
STRATEGIC HUMAN RESOURCE MANAGEMENT
Name of the Student
Name of the University
Author Note

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Executive summary
This paper focuses on two strategic human resource management models and critically
evaluates the two models which are the Fombrun model and Beer’s model. This model
focuses on their importance and assesses the relevance of these models in recent years in the
organizations. This paper will evaluate and provide which model is more suitable in today’s
context and the role it plays in contributing to the success of the organization.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Fombrun’s model...................................................................................................................3
Beer’s model..........................................................................................................................5
Model that is more suitable and relevant in recent times.......................................................8
Conclusion................................................................................................................................10

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Introduction
Human resource is defined as the strategic approach taken by an organization or a
company to effectively manage the people or employees in a company in order to help the
organization gain a competitive advantage in the market (Porter & Kramer, 2019). It is
designed in way that helps in maximizing the performance of the employee and thus several
models have been created and are being used by organizations (Bailey et al, 2018). Human
resource has become an important aspect in an organization (Collings, Wood & Szamosi,
2018). This paper is going to discuss and critically analyze the two human resource
management models, Fombrun’s model and Beer’s model and will provide detailed
information about the models and make a conclusion which one is a more effective model
that organizations may use for better employee retention and enhancement of performance.
Discussion
Fombrun’s model
The Fombrun, Tichy and Devanna model popularly known as Fombrun’s model is a
strategic human resource management model. This model was formed in the year 1984
(Steiner, Sundström & Sammalisto, 2013). This model puts emphasis on only four functions
and how the functions are interrelated. The four functions of the model are selection,
development, appraisal and rewards. According to the model these four components are
necessary in human resource management and are likely to contribute to the effectiveness and
success of the organization (Kitchen et al, 2013). This model is considered to be incomplete
as it does not put emphasis on many other factors like the contingency and environmental
factors that are detrimental to an organization and ignores them (Casado & Peláez, 2013).
However, this model is simple compared to the other models and serves as one heuristic

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framework that explains the significance and nature of the activities carried out by the human
resource department.
Fig: The Fombrun, Tichy and Devanna model
According to scholars, the Fombrun model in a simplified manner shows the essential
activities that are carried out by the human resource department (Páscoa, Ferreira & Tribolet,
2013). In this model all the components are interrelated like when the employees in an
organization are selected then the appraisals and rewards help motivate the employees to
enhance their performance which results in the effectiveness of the organization. According
to scholars, this model is ideal as it focuses on the components that highly motivate
employees which are appraisal and rewards which is one of the key functions of the human
resource manager to extract fruitful performance (Frankenberger, Weiblen & Gassmann,
2013). Many scholars suggest using this model stating that money is a motivational factor for
employees and thus appraisal and rewards boost their confidence and motivate them to work
harder to gain recognition and feel a part of the organization (Weisberg & Dent, 2016).
Human
resource
development
Selectio Appraisal Organizational
effectiveness
Rewards

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However, there have been scholars who have argued that appraisal and rewards are not the
only ways that motivate employees and there are other factors like inclusion in the workplace
which is necessary for an employee to work on a daily basis (Ilies et al, 2018). There have
been scholars who have not approved of this model stating that this ignores all the necessary
factors that are important in human resource management (Jackson, Schuler & Jiang, 2014).
Appraisal and rewards are components and factors that are essential but they are usually
provided to the employees on an annual basis and there are factors that the human resource
management need to look after and maintain on a daily basis that help motivate employees
like providing a better atmosphere with adequate and key resources which is essential to carry
out the daily works or tasks of an employee like planning and labor relations and many more.
Anitha, (2014), states that a healthy working environment is one of the key factors that
motivate employees to work towards the goals of the organizations and help achieve the
desired goals that are set by the organization. This model is suitable and does help in bringing
positive outcomes however this ignores many important factors that are essential.
Beer’s model
Beer model also known as The Harvard model is a strategic human resource model
that was designed and proposed in the year 1984 (Al-Haddad & Kotnour, 2015). This is
considered to be one of the most considered and influential human resource models. This
model is however viewed as a model that is different fundamentally from other resources
which cannot be managed and maintained in the same way. This model puts emphasis on
people or the employees as human resources. The Harvard model is said to be comprehensive
and comprises of six components that are critical to human resource management (Kaufman,
2015). The components or dimensions that are included in the Harvard model are situational
factors, stakeholder’s interest, the policy choices by human resource management and the
long –term consequences and outcomes of human resources (Rok & Mulej, 2014).

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Stakeholder
Interest
Shareholders
Management
Government

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Fig: The Harvard Model
This model recognizes the interest of the stakeholders and the importance and
necessity of trade-offs between the interest of the employees and their owners. There are
many other interest groups where the existence of trade-offs is witnessed however, it
becomes a huge challenge of the Human Resource Manager to balance the interests of all the
stakeholders.
This model also focuses on the situational factors that influence the choice of the
strategies by the Human Resources. The factors that are included here are labour market,
social values, laws, technology, task, characteristics of the work force and management
philosophy.
The policy choices of the Human Resource Management put emphasis on the decision
of the management and the actions can be appreciated fully when it is recognized that the
choices are the result from the interaction between choice and constraints. According to
scholars, the Harvard model is important and useful as it puts emphasis and recognizes the
interests of the various stakeholders that are present in a business. Agoi, (2017), opines that
the Harvard model widens the context of human resource management by including
employee influence in the framework. According to Paauwe & Boon, (2018) the Harvard
model highly believes that the problems of the management can be solved only when the
managers of an organization create a viewpoint as to how they want or wish to see the
employees developed by an organization and which practices and policies will help to
achieve the desired goals. Wallo, Kock & Nilsson, (2016) states that the Harvard model
provides the necessary link between the business environment, performance of the
organization and the strategic human resource management decisions. This model provides
an open system of how the strategic human resource management policies influence the other
Human
Resource
Management
Employee
influence
Rewards systems
Work systems
Human
Resource
Outcomes
Commitment
Competence
Congruence
Cost
effectivenessSituational Factors
Workforce characters
Business strategy and
Conditions
Unions
Labour market
Laws & Societal values
Long-Term
Consequences
Individual well- being
Organizational- Societal
well-being

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functions in an organization and how it is constrained by the situational and stakeholders
factors. However, (Chatterjee & Guha, (2019) states that the Harvard model does
acknowledge stakeholder and environmental influences but the causal chain that is presented
in the model is vague and unclear. According to Kosheleva & Bordunos, (2018) the Harvard
model does not clearly explain how the four policies mentioned in the model are influenced
by the stakeholders and environment and how it has a long-term effect on the strategic human
resource management.
Model that is more suitable and relevant in recent times
Strategic human resource management has all the components of the basic human
resources like discipline, payroll, hiring and involves working and collaborating with the
employees of the organization in order to boost retention, improve the quality of the work in
the organization and maximize the benefits of the employer and the employees which help
both of them. There are several models of human resource management that have been
created and designed by many scholars that helps organizations to implement those models
and carry out the functions effectively.
The Fombrun model has been designed keeping the interest of the employees in mind
who is one of the key resources of an organization and they are a vital part of an organization
that helps in contributing to the success of the organization. This model includes only four
components which is selection, appraisal, development and rewards and shows how they are
interrelated. This model shows the basic function of the HR which is to hire employees and
the then the important aspect which is appraisal and rewards which is one of the motivational
factors for the employees in an organization. According to Tidd & Bessant, (2018) appraisal
has a huge role to play to motivate employees and enhancing their performance that helps in
benefiting both the employees as well as the organizations. Rewards are also other form of
motivating employee and contribute to employee retention in a firm (Ajmal et al, 2017).

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Employees are one of the important and vital resources of organizations or companies
however there are many other factors that are essential in human resource management and
this model is somewhat incomplete.
On the other hand, Beer’s mode popularly known as the Harvard Model focuses on
the critical components of the human resource management. This model puts emphasis and
focuses on the overall areas that are important in human resource management. The model
puts emphasis on the situational factors as well as focuses on the stakeholders of the
organization which is an important aspect. The model does not only focus on stakeholders
and situational factors but on other factors and focuses on the four policy areas like the
influence of employees which are responsibility, power and levels of authority. The model
also talks about the Human Resource flows like selection, promotion, recruitment,
termination, appraisal and many more. The model also focuses on reward systems that are
provided to the employees for their performance in the organization and certain rewards and a
certain payroll is given to them as a token of appreciation. Another important factor is work
system like alignment of the people in the organization and the design of work. These
policies of the human resource management lead to the 4Cs of the HR policy outcomes that
have and need to be achieved. According to scholars, this model is useful and necessary as it
recognizes the various interests of the stakeholders which are not seen in other models.
Bratton & Gold, (2017), states that the Harvard Model acknowledges a wide range of
contextual influences on the choice of the strategy made by the organization. This model puts
emphasis on the fact that how the strategic choices in the human resource management are
driven by environmental determinism or situational factors that has a long-term effect on
strategic human resource management.
From the above two models it can be seen that both are extremely useful and
beneficial and these models are widely used in organizations by the department of human

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resource management. Both the models focus on the important factors of human resource
management that helps in maintaining the employees and ensures effective operations by the
employees and also the motivational factors that help organizations to retain their employees
and motivate them in order to provide enhanced performance to contribute to the success of
the organization. However both the models are different from each other as the Fombrun’s
model focuses on only four main components and talks about how they are interrelated. The
main focus is one the employees and the efforts made by the employee which help in
motivating employees and providing them with a sense of satisfaction which helps in
motivating them as well which eventually contributes to the effectiveness of the organization.
Apart from these factors there are several other aspects that human resource management
need to cover, look after and maintain in order to facilitate smooth and effective operations of
an organization which the Fombrun model does not mention at all making it an incomplete
model.
On the contrary the Harvard Model focuses on most of the aspects that is necessary
from the stakeholders to the human resource flows like hiring developing and also focuses on
the factors that are mentioned in the Fombrun model which is appraisal, rewards and
recognition. This model is used by several companies; one of the noted companies which
follow this model is AirAsia, a Malaysian online company that uses this model where they
concentrate on all the aspects and not only on the appraisal and rewards but also other
important factors like stakeholders and situational factors.
This model is more helpful in comparison to the Fombrun model as it provides all the
details and focuses on the other important factors that are detrimental and essential in human
resource management like the environmental and situational factors. It focuses on the daily
jobs that are necessary to facilitate the performance of the employees rather than just
mentioning about the appraisal and rewards. This puts emphasis on all the necessary factors

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and in recent years most businesses and big corporate uses this model which help them in
retaining employees, satisfying the interest of the stakeholders and shareholders and also help
the organization gain profits.
Conclusion
The Harvard Model is one of the most important models that has been designed and
created for human resource management and this model is highly considered by big
organizations in the business as it focuses on most of the aspects that is necessary in an
organization and focuses on all the key resources of the organization rather than just the
employees making it an overall efficient model in comparison to the Fombrun model which is
incomplete however does focus on the important aspect of appraisal and rewards. However,
the Harvard Model is more suitable and the use of this model will help achieve organizations
their desired goals.

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