Models of Human Resource Management (HRM)

The matching model of HRM

One of the first explicit statements of the HRM concept was made by the Michigan School (Fombrun et al, 1984). They held that HR systems and the organization structure should be managed in a way that is congruent with organizational strategy (hence the name ‘matching model’). They further explained that there is a human resource cycle , which consists of four generic processes or functions that are performed in all organizations. These are:

1. selection – matching available human resources to jobs;
2. appraisal – performance management;
3. rewards – ‘the reward system is one of the most under-utilized and mishandled managerial tools for driving organizational performance’; it must reward short as well as long-term achievements, bearing in mind that ‘business must perform in the present to succeed in the future’;
4. development – developing high quality employees.