Soft model of HRM

The Harvard model or soft model of HRM:

The Habib Bank Limited sees employees as resources. However they are treated
differently from other resources of the organization.

According to Habib Bank Limited employees are significant stakeholders and they have
their own needs and concerns along with other groups such as customers.

Situational factors:

Stakeholder interest:

HRM Polices:
The Harvard model has four strategic polices areas which are: Human resource flows,
Employee influence, Reward system, Work system.

HR Flows

Human resource flows means managing the flow and performance of the employees.
This can only be done through the employee recruitment and selection process. In HBL the
recruiting and selection process of employees is formal so they can manage the movement and
performance of employees very effectively and also show the right mix and no of employees at
the organization.

Employee influence

This strategy means to give authority or to empower the employees for the decision
making in the organization. Employees have freedom to share the information, freely
communicate to each other, work environment is very friendly. In HBL this strategy is not
practiced much. They provide participation to their employees in many of the organizations
decision but not give them authority to make their own. Final Decisions are always made by the
top management.

Work system

The work system of the HBL defines the position of the employees, give clear lines
of command and authority, and design the jobs for the workers.

Reward system

Reward system is used to keep, attract, motivate and retain the efficient workforce.
The system they use for payment and benefits in the organization to reward the workers. HBL
gives rewards to their employees to some criteria.

HR Outcomes
In the result of effective HR polices there are four outcomes of human resource which are:
Commitment, Coherence, Competence and Cost effectiveness

Commitment
 Human Resource Policies which apply in Coca Cola is enhance the commitment to their
work and their employees. More commitment in employees leads to more loyalty and better
performance. The HBL employees are committed so its benefits to individuals also for their own
targets or goals, self-worth and dignity. If the human resource polices are effectively
implemented and managed in the organization then these will leads to the employees
commitment. Committed employees can provide the competitive edge to the company.
Commitment can only be get if the needs and wants of the employees will be fulfilled by the
management so they will effectively fulfill the main goals and objective of the organization.
HBL link the individual goals of the employees to the organizational goals and provide effective
ways and devotion to fulfill them this will make their employees committed and feels themselves
as in a strong relationship between them or in HBL

Competence

HBL hire the most skilled and knowledge able people because early stages of job
person use in every organization and then they will go in special organization. There is a very
well established method and system of training at HBL which is always making the way to
develop the competent skills and expertise in the organizational employees. Training leads to the
development. They train their employees to develop the appropriate mixture of abilities and
knowledge in the employees which make their employees more productive and efficient.

Coherence:
Coherence means that give value to employee with different aspects. In HBL they
give values to their employees by their work and organization is divided in separate department.

Cost effectiveness:
Human Resource management policies cab be evaluate in term of wages, benefits,
turnover, absenteeism etc. HBL is Cost effectiveness because they give values to employees so
the employees is more loyal to organization.