In turn at the societal level as a result of fully

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In turn, at the societal level, as a result of fully utilizing people at work, some of society's goals (for example, employment and growth) are attained. 6. A feedback loop through which the outputs flow directly into the organization and to the stakeholders: The sixth component of the Harvard model is the feedback loop. As we have discussed, the situational factors influence HRM policy and choices. Conversely, however, long-term outputs can influence the situational factors, stakeholder interests and HRM policies. The feedback loop reflects this two-way relationship. Strength of the Harvard model is the classification of inputs and outcomes at both organizational and societal level, creating the basis for a critique of comparative HRM. A weakness of the model is the absence of a coherent theoretical basis for measuring the relationship between HRM inputs, outcomes, and performance. 2.3.2. The Matching model of HRM Fombrun et al (1984) proposed the ‘matching model’, which indicated that HR systems and the organization structure should be managed in a way that is congruent with organizational strategy. This point was made in their classic statement that: ‘The critical management task is to align the formal structure and human resource systems so that they drive the strategic objectives of the organization’. Thus they took the first steps towards the concept of strategic HRM. The underlying premise of this influential model is that high-wage countries in the western hemisphere can only gain competitive advantage through adopting Michael Porter's (1980, 1985, 1990) generic 'low-cost' or 'differentiation' strategy. The practice of strategic HRM is concerned Stakeholder Interests HR Strategy i) Employee influence ii) Human Resources flows iii) Reward system iv) Work systems HR Outcomes i) Commitment ii) Congruence iii) Competence iv) Costs Long-term consequences i) Organizational effectiveness ii) Individual well-being iii) Societal well-being Situational Interests i) Workforce type ii) Business strategy iii) Management philosophy iv) Labour market v) Task technology vi) Societal values
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with the challenge of matching the philosophy, policies, programs, practices and process, the 'five Ps’, in a way which will stimulate and reinforce different employee role behaviors appropriate for each competitive strategy. Any inconsistency in internal HRM practices will likely lead to role conflict and ambiguity that can interfere with individual performance and organizational effectiveness. In the matching model, the relationship between business strategy and HRM strategy is said to be 'reactive' in the sense that HRM strategy is subservient to 'product market logic' and the corporate strategy. The matching aspect of this model demonstrates that the model is inclined towards the harder side of HRM.
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