HRM is a significant factor in the success of organization, it focuses on the effective overall management of an organizations' workforce. "Human resources are considered by many to be the most important asset of an organization, yet very few employers are able to harness the full potential from their employees (Radcliffe 2005)". The primary discussion in this essay would be how and why people are of value to organization, why valuing and managing its employee could contribute to company success by analyzing the HR models. .
In classic HRM model that emerged and developed in the USA in the early 1980s, The Harvard Model recognized employees as company's resources. Employees are important stakeholders in the organization. They have their own needs and concerns along with other groups such as company shareholders as pluralist assumptions. The relationship between company and its employee could significantly affect the management decisions and strategies. HR outcome could be commitment, congruence and cost effectives. The long-term outcomes assume benefits of HRM for individuals, the organization and society in general. Edgar and Geare (2005) also stated that Harvard model assumes employee needs are met as a goal of organization, this leads to commitment and loyalty of staffs to the organization. .
Strategy HRM model uses an organization's HRM system to achieve strategic goals. Generally, SHRM is linking people with the organization systematically. So it is about the integration of HRM strategies into corporate strategies. Schuler (1992) mentioned that HR strategies are fundamental plans that solve essential strategic issues related to HRM in the organization. It is commonly believed that successful integration between HRM and business strategy could effectively contributes to management of human resource, improvement in organization performance and success in a particular business goal (Schuler and Jackson, 2005).