The Fombrun Model of HRM (Michigan Model)

Introducing the Fombrun (Michigan) Model

In 1984, Tichy, Fombrun, and Devanna proposed a new model of HRM that broke with the traditional administrative role of personnel management. Known as the Michigan Model, it placed HRM firmly within the strategic core of the organization.

The model argued that people management must be tightly aligned with business strategy—and that every HR decision should serve organizational performance.

The Four Key HR Functions

The Michigan Model defines four key HR practices as part of a tightly integrated system:

1. Selection – Choose individuals who fit the business strategy
2. Appraisal – Measure performance against strategic goals
3. Development – Build capabilities that support business objectives
4. Rewards – Link compensation to performance and contribution

These are seen as interdependent and cyclical. For example, performance appraisals feed into development plans and reward decisions.

Underlying Philosophy: Hard HRM

The Michigan Model is often cited as the origin of hard HRM—a view of employees as resources to be managed efficiently. It draws heavily from economics, systems theory, and strategic management literature.

Its focus includes:

• Quantifiable outcomes
• Performance metrics
• Managerial control
• Organizational effectiveness

While this made HR more “business-relevant,” it also reduced attention to human needs, motivation, or well-being.

Strategic Alignment Above All

One of the key contributions of the Michigan Model is its insistence on vertical integration: HR systems must align with business strategy. That sounds obvious today, but in the 1980s it was revolutionary.

It also introduced the idea of fit—the belief that HR practices must be consistent with one another and with the broader business context.

Criticism and Limitations

Despite its influence, the model has several important limitations:

• Overemphasis on control – Employees are seen more as tools than stakeholders
• Lack of flexibility – Strategy-first thinking may not fit dynamic or creative environments
• Ignores employee voice and ethics – No role for engagement, well-being, or social responsibility

Practical Applications

The Fombrun Model remains useful in:

• Manufacturing and process-driven industries
• Turnaround or crisis contexts
• Organizations with strong top-down leadership

But in today’s knowledge economy, most firms adapt its logic rather than apply it wholesale.

Real-World Example

Conclusion: Strategic but Not Sufficient

The Michigan Model was a milestone in treating HRM as a business function—not just administration. Its emphasis on alignment and performance remains valuable. But on its own, it can produce a cold, transactional HR culture that fails to energize or retain people.

Smart HR leaders take its core message—make HR strategic—but balance it with models that consider human dynamics.