The Michigan model

The presentation focuses on the Michigan Model in the HRM.

1. Fombrun, Tichy, and Devanna Model. Center for Education and Staff training ,University of Swat. Presented by: Aziz Ahmad, Sohail Ahmad and Amjad Ali. CENTER FOR EDUCATION AND STAFF TRAINING, UNIVERSITY OF SWAT . 2 /23

2. Learning outcomes: By the end of this presentation the participants will be able to: Describe The Michigan model of Human Resource Management. Identify the elements of the Michigan model of HRM. Explain the uses of Michigan model in organization. Center for Education and Staff training ,University of Swat. 3 /23

3. The Michigan Model The model was developed in 1984 by Michigan Business School, United State of America. Fomburn, Tichy and Devanna were the proponents of this model. It is also known as the “Michigan Model” or “ Best-Fit “ approach to human resource management. The Michigan model focuses on hard HRM. Center for Education and Staff training ,University of Swat. 4 /23

4. The Michigan Model Hard approach to HRM. Focuses on business strategy . Organization‘s resources and the external environment. The model is inhumane/ Important to Business success. “ Matching ” employees to business needs. The Role of HR department. Center for Education and Staff training ,University of Swat. 5 /23

5. The Michigan Model The model is based on the following key principles; Recruitment and selection. Performance monitoring. Rewards. Development and trainings. Center for Education and Staff training ,University of Swat. 6 /23

6. The Michigan Model ORGANIZATION Center for Education and Staff training ,University of Swat. 7 /23

7. The Michigan Model ORGANIZATION Center for Education and Staff training ,University of Swat. Mission and strategy 8 /23

8. The Michigan Model ORGANIZATION Mission and Strategy Organization Structure Center for Education and Staff training ,University of Swat. 9 /23

9. The Michigan Model ORGANIZATION Mission and strategy Organization Structure HRM Center for Education and Staff training ,University of Swat. 10 /23

10. ORGANIZATION Mission and strategy HRM Center for Education and Staff training ,University of Swat. Political forces Economic forces Cultural forces Organization Structure 11

11. The Michigan Model The model is presented as a triangle, within the triangle the organization or the firm is the centre. The organization is central to all business activities, other factors are secondary. The triangle represents internal and external factors that influence the business. Each factor is interlinked and have an influence over business activity. Center for Education and Staff training ,University of Swat. 12

12. The Michigan Model The management decide organization mission, strategy and structure. HRM is then designed and integrated to meet the needs of the business. All internal factors must effectively respond to the changing external environment, political, economic and culture. HRM is an important element in the model , it design and application is dependent on the business . Center for Education and Staff training ,University of Swat. 13 /23

13. The Michigan Model - The Human Resource Cycle The Michigan model emphasizes on another important element within the HRM, the human resource cycle. The human resource cycle consists of four functions and affects individual and organization performance. Each function within the HR cycle is based on strategic control and organizational performance. Center for Education and Staff training ,University of Swat. 14 /23

14. The Michigan Model - The Human Resource Cycle Center for Education and Staff training ,University of Swat. SELECTION 15 /23

15. The Michigan Model- The Human Resource Cycle Center for Education and Staff training ,University of Swat. SELECTION PERFORMANCE 16 /23

16. The Michigan Model- The Human Resource Cycle Center for Education and Staff training ,University of Swat. SELECTION PERFORMANCE APPRAISAL 17 /23

17. The Michigan Model- The Human Resource Cycle Center for Education and Staff training ,University of Swat. SELECTION PERFORMANCE APPRAISAL REWARDS DEVELOPMENT 18 /23

18. The Michigan Model- The Human Resource Cycle Center for Education and Staff training ,University of Swat. SELECTION PERFORMANCE APPRAISAL REWARDS DEVELOPMENT 19 /23

19. The Michigan Model Selection: recruiting people who are capable to do the job that has been designed by the structure. Matching human resources to business needs/jobs. Performance and appraisals: performance is the central function of all HR management. Appraisal is designed to link performance to business objectives. Center for Education and Staff training ,University of Swat. 20 /23

20. The Michigan Model 3: Rewards: Employee motivation linked to performance and high level rewards. A recognition of achievements. 4: Development: training and development opportunities to enhance current performance and their competency. It is also feeding back if there is a big need for development. The key element in the human resource cycle is performance , all other activities are focused on enhancing employee/organization performance. It’s trying to ensure that the performance of the individuals meet the company requirements. Center for Education and Staff training ,University of Swat. 21 /23

21. The Michigan Model- Advantages Cost Affective: there is no emphasis on employee development or training . There are minimal cost involved in management and monitoring of employees. Faster decision making: one way communication, therefore decision making is senior management level. Employees are not given authority to contribute to decision making. Center for Education and Staff training ,University of Swat. 22 /23

22. The Michigan Model- Disadvantages Demotivating for employees: employees are not valued, no consideration to their skills , capabilities or development. High staff absenteeism and turnover: employee dissatisfaction leads to high turnover. Ineffective recruitment practices: recruitment is based on employee capability to do the job. This model ignores the stakeholder interests, and situational factors. The model refers to context in terms of Political, Economic and Cultural forces. Center for Education and Staff training ,University of Swat. 23 /23