A critical analysis of the model shows that it is deeply rooted in the human relations tradition.
Employee influence is recognised through people motivation and the development of an organization culture based on mutual trust and team work.
The factors above must be factored into the HR strategy which is premised on employee influences, HR flows, reward system etc.
The outcomes from such a set up are soft in nature as they include high congruence, commitment, competencies etc.
The achievement of the crucial HR outcomes has got an impact on long term consequences, increased productivity, organizational effectiveness which will in turn influence shareholder interests and ...view middle of the document...
Precisely, the matching aspect of this model demonstrates that the model is inclined towards the harder side of HRM.
This is because the matching model emphaizes more on “tight fit” between the HR strategy and the buisness strategy.
NB It demands that available human resources must be matched with jobs in the organization.
The HR strategy must be highly calculative in terms of the quantity of the human resources required to achieve the objectives enshrined in the business strategy.
Business strategy takes the central stage in this model hence human resources are taken like any other resource which must be fully utilised together with the other resoruces to achieve organizational objectives.
(Evans and Lorange, 1989) argue that the Michigan model is based on the “product market logic” which demands that to gain high profits labour must be obtained cheaply, used sparingly, developed and exploited fully.
The Matching Model of HRM
The point of departure in the Michigan Model is the pre-eminence and pre-dominance of a business strategy, which must strictly be achieved by the available resources regardless of whether, they are able to do so or not.
In fact the business strategy must be achieved through minimum labour costs enhanced by structural re-organization, Performance Related Pay and staff reduction.
The Guest Model
The Guest model was propounded by David Guest in 1987.
This model is a fusion of aspects that resemble both a hard and a soft approach of HRM.
Guest proposes 4 crucial components that underpin organizational effectiveness.