Standard Causal Model Of HRM: The model presents and demonstrates how HR activities aligned with the organization’s strategy can lead to better business outcomes. Accordingly, HR is only effective if its strategy is  in line with the corporate strategy according to the best-fit theory.The HR strategy is therefore a derivative of the organization’s overall strategy to achieve maximum financial results.

Also See: ASTD Model of HRM: Complete Reference

Standard Causal Model Of HRM: Definition, Features, Process

What Is Standard Casual Model Of Hrm?

The standard HRM causal model differs from other well-known HRM models. This model was derived from a series of comparison models that became popular in the 1990s and mid-2000s. The model shows a chain of cause and effect, beginning with the negotiation and closing process, through HR, with better budget utilization.

Features Of Standard Causal Model Of Hrm

  1. HR practices are aligned with HR strategy. Examples include recruitment, training, evaluation and compensation. These HR practices produce concrete results. Examples are commitment, quality of results and commitment.
  2. These HRM results, in turn, lead to better internal results. Examples are productivity, innovation and quality. These results are translated into financial results (e.g. profits, financial turnover, improved margins and return on investments).
  3. Two interesting relationships are the indirect effects of human resource management, showing that some human resource practices can lead directly to improved internal performance. For example, good training can lead directly to better performance without necessarily affecting HR performance.
  4. The reverse causality in the model shows that sometimes better financial performance translates into more investment in HR practices and better HR performance. When productivity is high, employees are often more committed (HR score).

Also See: Fombrun Model of HRM: Process, Diagram And Advantages

Working Of Standard Causal Model Of Hrm

The model represents the underlying chain, starting with the business plan and ending with the budget results. According to this approach, a human resource only makes sense if its method fits the company’s strategy, i.e. the side with the most suitable hypothesis. In addition, HR habits are aligned with social resource plans. This includes education, compensation, appraisals, hiring and training. Such practices produce specific outcomes such as effort, commitment, and quality outcomes.

Also See: Warwick Model of HRM: Meaning, Elements and Advantages

The indirect impact on HR shows that some HR practices can lead directly  to improved  internal  performance. Furthermore, the reverse causality in this approach shows that sometimes better financial performance translates into higher HR investments, habits and better HR performance (DeCenzo et al., 2016). Good performance leads to more engaged employees. Therefore dependencies with this approach are often not one-sided. In general, this HR model shows how the HR plan is developed and the impact HR has on the internal process as well as the financial performance of the organization.

Also See: Contextual And European Model Of HRM

Benefits Of Standard Causal Model Of Hrm

  1. This is the most well-known approach to human resource management. The model represents the basic chain, starting with the business plan and ending with the tax results.
  2. According to this approach, HR only makes sense when its method is consistent with the business strategy, which is the party with the most appropriate assumption. In addition, HR habits are aligned with social resource plans. This includes education, compensation, appraisals, hiring and training.
  3. Such practices produce specific outcomes such as commitment, engagement, and quality of outcomes.
  4. The HR Indirect Effect shows that some HR habits can lead directly to improved internal performance.

Also See: Dave Ulrich HR Model: Purpose, Strengths, Weakness Explained (2023)

Conclusion

The model shows the causal chain starting with corporate strategy and ending with (improved) financial results via HR processes. The model then shows how HR activities aligned with the organization’s strategy lead to business outcomes. The HR template helps you to properly configure HR processes, HR responsibilities, HR roles and HR job profiles. The HR template itself does not help to improve the work of the HR department, it is a good tool for making changes and changing the organizational structure of HR.

Also See: Strategic Hr Model: Meaning, Importance and Working

Also See: 5p Model Of Hrm: Meaning, Purpose With Diagram

https://101hrm.com/wp-content/uploads/2023/04/Standard-Causal-Model-Of-HRM.jpghttps://101hrm.com/wp-content/uploads/2023/04/Standard-Causal-Model-Of-HRM-150x150.jpgSumit ThakurHRMStandard Causal Model Of HRM: The model presents and demonstrates how HR activities aligned with the organization's strategy can lead to better business outcomes. Accordingly, HR is only effective if its strategy is  in line with the corporate strategy according to the best-fit theory.The HR strategy is therefore a...HRM