The document presents the Michigan Model of human resource management. It was developed in 1984 by the University of Michigan Business School. The model focuses on aligning HR practices with business strategy and external factors. It emphasizes recruitment, performance monitoring, rewards, and training to match employees' skills with organizational needs. The model depicts HR as central to the organization's mission, structure, and response to external environment influences.

2. 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
.
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3. 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

4. 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

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

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

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

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

11. ORGANIZATION
Mission
and
strategy
HRM
Center for Education and Staff training ,University of Swat.
Political
forces
Economic
forces
Cultural
forces
Organization
Structure
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12. The Michigan Model
1) The model is presented as a triangle, within the triangle the
organization or the firm is the centre.
2) The organization is central to all business activities, other factors are
secondary.
3) The triangle represents internal and external factors that influence
the business.
4) Each factor is interlinked and have an influence over business
activity.
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13. The Michigan Model
1. The management decide organization mission, strategy and
structure.
2. HRM is then designed and integrated to meet the needs of the
business.
3. All internal factors must effectively respond to the changing
external environment, political, economic and culture.
4. 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

14. The Michigan Model - The Human Resource Cycle
1. The Michigan model emphasizes on another important
element within the HRM, the human resource cycle.
2. The human resource cycle consists of four functions and
affects individual and organization performance.
3. 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

15. The Michigan Model - The Human Resource Cycle
Center for Education and Staff training ,University of Swat.
SELECTION
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16. The Michigan Model- The Human Resource Cycle
Center for Education and Staff training ,University of Swat.
SELECTION PERFORMANCE
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17. The Michigan Model- The Human Resource Cycle
Center for Education and Staff training ,University of Swat.
SELECTION PERFORMANCE APPRAISAL
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18. The Michigan Model- The Human Resource Cycle
Center for Education and Staff training ,University of Swat.
SELECTION PERFORMANCE APPRAISAL
REWARDS
DEVELOPMENT
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19. The Michigan Model- The Human Resource Cycle
Center for Education and Staff training ,University of Swat.
SELECTION PERFORMANCE APPRAISAL
REWARDS
DEVELOPMENT
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20. The Michigan Model
1. Selection: recruiting people who are capable to do the job
that has been designed by the structure. Matching human
resources to business needs/jobs.
2. 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

21. 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

22. The Michigan Model- Advantages
1. Cost Affective: there is no emphasis on employee
development or training . There are minimal cost involved
in management and monitoring of employees.
2. 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

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