Guests Model of HRM

Prior to investigating Guests model of HRM; we must know about Hard and Soft HRM.
The Hard approach is concerned with aligning human resources strategy with business strategy. A
manager employing the Hard HRM approach is strict and assumes only reason employees work is to
acquire financial benefits.
On the other hand, the Soft approach encourages commitment to the organization by focusing on
workers concerns. A manager employing the Soft HRM approach is more compassionate, trust the
employees more, and gather opinion and take it on board with the belief that workers come to work
with the intention to impress and progress.
Guest acknowledges the difference between these two approaches and incorporates both of them in an
ideal model.
Guests Model seeks commitment to organizational goals through strategic management of an
organization.
Guests Model focuses on the individual needs rather than the combined workforce which enables
organizations to develop power and flexibility.


Difference between HRM & Personnel Practices
According to Storeys Definition of HRM human capability and commitment is what differentiates
organizations.
Moreover, HRM needs to be implemented into the organizational strategy and needs to be integrated
into the management functions because these will assist organization to achieve its goals properly.
Storeys Definition of HRM identifies the following points of difference between
Personnel, IR Practices & HRM Practices:
Personnel aim at careful delineation of written contracts whereas HRM try to go beyond the
contract.
Personnel prioritizes devising clear rules whereas HRM pursues a can do outlook.
Personnel guide to management action is based on procedures whereas HRM focuses on
business need.
Corporate plan goes side by side with Personnel whereas HRM is integrated with strategy.
Pace of decision is a bit slow with Personnel compared to HRM.
The key concern of Personnel is just labor management while HRM focuses on customer.
With Personnel managements role is transactional whereas HRM focuses on transformational
leadership.
Personnel maintain indirect communication whereas HRM follows direct communication
approach.
Selection is a separate task for Personnel whereas this is an integrated process for HRM.
Personnel believe in fixed grade pay while HRM believes in performance related pay.
Job design is based on division of labor with Personnel while HRM aims to promote teamwork.
Implications for Line Managers in Developing a Strategic Approach to HRM
A number of benefits exist in using line managers as developers of people.-
Line managers specialize in day-to-day people management.-
They can manage operational costs effectively.-
They can apply technical expertise where necessary.-
Line managers organize work allocation and Rota.-
They monitor and evaluate work processes.-
They measure operational performance and check quality.-
Line managers deal with customers and clients directly.

Implications for Employees in Developing a Strategic Approach to HRMEmployees play the most
important role in HRM since they are the key asset and we also mustremember that high-performing
and innovative employees are the foundation of productivity.
Some major implications are as followed:-

Effective leaders can set direction and execute a corporate strategy that buildscommitment.-
Employees help develop performance metrics for continuous improvement.-
Support for employee innovation can dramatically increase productivity.-
Employee collaboration and best-practice sharing improves efficiency.-
Effective reward system for employees drive toward better performance. Non monetaryfactors
like better status can motivate employees in addition.-
Effective communication and feedback from employees can reduce errors andfrustration at
work.