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What is Warwick Model of HRM – Advantages, Disadvantages & More!

What is Warwick Model of HRM – Advantages, Disadvantages & More!
What is Warwick Model of HRM – Advantages, Disadvantages & More!
Definition of the Warwick Model is established on the belief that human resources can give any organisation a significant competitive advantage, so, therefore, the employees should be treated as assets rather than the costs.
What is Warwick Model of HRM – Advantages, Disadvantages & More!
What is Warwick Model of HRM – Advantages, Disadvantages & More!

Human resources are located at the intersection of sociology and business philosophy. You can find numerous theories and several science projects that go into developing models according to today's needs and improving ongoing HR models. The HR managers have used most of these methods, and some veterans have practiced for decades. On the other hand, others are more recent additions to the profession.

It's well worth your effort as an HR manager or stakeholder in the human resource field to familiarize yourself with at least the fundamental elements of these models and the thoughts behind them. You can experiment with applying the theories and models to your firm. In this way, you can discover the one that fits best with your attitude and employees. As a result, you can improve how well your company operates by studying them.

What is the Warwick Model of HRM?

The Warwick Model of HRM was created by two University of Warwick scholars, Hendry and Pettigrew (hence the name Warwick model).

The goal of HRM models is to assist businesses in managing their personnel effectively to meet their goals.

The Warwick Model of HRM places a strong emphasis on a data-driven approach to HRM. It also highlights the impact of people functions on the substance of the human resource strategy. The Warwick proposition, similar to other models, is built around five components:

  • -The outside context. All of the macro-environmental forces are included in it.
  • -The inner context. All of the firm-specific or micro environmental forces are included in it.
  • -The organization or business strategy content
  • -The HRM context, and
  • -The HRM content

This model considers both company strategy and HR practices, and it demonstrates how inner and outside contexts interact with organizational strategy.

As a result, the model is useful for recruiting and selection because internal and external circumstances should be considered while developing an organization's strategy. Most of the HRM practices, in turn, are affected and influenced by organizational strategy. You can consider systems, processes, procedures, techniques, and methods as an example of such practices. The Warwick model's key strength is that it recognizes and categorizes significant environmental impacts on HRM. It also depicts the links between the environment and corporate strategy. This model also considers how HRM should respond to variations in the macro-environment.

Warwick Model 

Warwick Model

The Warwick model comprises business strategy and HR practices, the external and internal context in which these activities occur. In addition, it also includes the process by which these changes occur. For example, the interactions between changes in both context and content.

The Warwick Model's main advantage is that it recognizes and categorizes significant environmental impacts on HRM. It examines how HRM responds to changes in the setting by mapping the relationship between external and environmental elements. Organizations that successfully find an alignment between the external and internal environments will inevitably achieve performance and development.

Warwick Model of HRM Advantages and Disadvantages 

Warwick Vs Harvard Model

Warwick Model of HRM Advantages

In general, the Warwick Model of HRM tries to balance inner and outward context impacts, especially when there is no agreement. The two contexts feed the overarching approach, which in turn feeds the context and content. HR implementation then feeds back into both inner and exterior environments, impacting both directly and indirectly through social forces.

Warwick Model of HRM Disadvantages

Warwick Model of HRM Disadvantages

​ The lack of a clear feedback loop between internal HR practices and external company outcomes is the model's fundamental flaw. Instead, feedback loops must filter through several contexts, causing them to become muddled and making it more difficult to discern which inputs cause which effects.

Warwick vs. Harvard Model  

Warwick Vs Harvard Model

The Harvard model of human resources is one of the most well-known and widely used. It was created by Michael Beer in 1984 and modified over time, with contributions by other specialists such as Paauwe and Richardson in 1997. Now you can say that it is the most complex, versatile, and comprehensive HR technique in use.

The Harvard model is often divided into five sections.

  • 1.Stakeholders are any group with a vested interest in the company's success. Shareholders and management are traditional stakeholders, but modern stakeholders might include employee organizations, unions, and even governmental interests. HR policies are developed based on the combined impact of stakeholders.
  • 2.Situational Factors are a set of circumstances that affect a person's life HR is influenced by situational factors such as the workforce, environment, industry, or society. Stakeholders' positions and influence are affected by these forces. Self-interest, social values, law, or an aggressive labor union, for example, may affect a company's c-suite.
  • 3.Human resource management policies: these are the policies, procedures, and processes that have been adopted within the company. Hiring, training, incentive and feedback systems, and other tasks are included. The creation of HRM policy is influenced by stakeholder interests and situational circumstances.
  • 4.You can define HR outcomes as the outcomes of the policies created by the aforementioned forces. Employee retention, dedication, competency, and cost-effectiveness are examples of business outcomes. They are the concrete, track-able key performance indicators for HR.
  • 5.Consequences are the last section in this model. It is a comprehensive examination of a firm and its people. It assesses the company's standing in its market and in society as a whole, as well as the general well-being of its employees.

The long-term consequences of HRM feedback into the three main pillars of the model are the key to this concept. Stakeholder interests, situational conditions, and particular HRM policies are all adjusted based on long-term repercussions (and the data collected about them). Long-term consequences provide feedback that helps enhance the original effects, which can then flow through the system and produce new, preferably better, long-term results.

Why should you use human resource models?

This approach links the human resource with the objectives of the organization in order to improve performance is known as strategic human resource management (HRM). Adopting an HR model that is concerned with the organization's larger mission and goals has numerous advantages and benefits for the company.

Aids in the evaluation of HR policies  

The HRM models are based on the idea that the company's employee rules and procedures should be aligned with the organization's overall strategic goals. Developing these ties between HR and strategy has the added benefit of assisting the firm in evaluating its present HR policies and replacing obsolete or ineffective rules with ones that promote a better working climate and employee interactions.

The organization may utilize the strategic plan's aims and objectives to analyze each HR process as it examines its HR policies. Those that do not align with the strategic vision might be modified or replaced with better ones.

Enhances the development of a team 

The HRM models also aid in the development of a sense of camaraderie and team spirit inside the firm. The strategic vision of a firm should ideally include input from a diverse group of stakeholders, including management, workers, consumers, and investors. Developing an HR strategy that supports this open communication may have a significant impact on stakeholders' perceptions of their opinions being appreciated and valuable to the company's owners and management.

Aids in Progress Monitoring  

The formulation and review of HR policies can be influenced by the company's strategic vision, but the opposite can also be true. Human resources may assist the business in tracking its progress toward meeting the strategic plan's stated goals and objectives. Employees and particular departments or activities inside the firm are likely to be crucial to the strategic plan's success.

Assists with the legal compliance of the organization  

A final benefit of the human resource management models is that it keeps the company in compliance with rules governing employees, salaries, and insurance, among other things. The rules and policies that govern a company are complicated and vary by jurisdiction, but HR is a major player in the organization's strategic plan.

Conclusion  

The HR model you select for your organization does not have to be complicated. Instead, it should just assist the HR Management team in establishing new HR roles and responsibilities since they are clearly visible and the human resources organization maintains internal and external logic.

Human resources are not managed using the HR model. HR model aids HR management in making consistent judgments on the effective implementation of HR processes and allowing workers to comprehend their own decision-making ability. When HR management keeps its attention on it, the HR model may be built rapidly, saving time and effort in the future when decisions concerning new processes and responsibilities must be made.

The HR model should be included in any major HR organization since it describes how the department is formed, and the HR Roles and Responsibilities are easy to understand for newcomers.

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Thursday, 02 December 2021

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