INTRODUCTION
Strategic HRM is an approach that defines how the organization’s goals will be achieved through people by means of HR strategies and integrated HR policies and practices (Armstrong, 2009).Business objectives are accomplished when human resource practices, procedures and systems are developed and implemented based on organizational needs, that is, when a strategic perspective to human resource management is adopted.(Baird and Meshoulam, 1988).Strategic HRM is largely about integration and adaptation. Its concern is to ensure that: (1) human resources (HR) management is fully integrated with the strategy and strategic needs of the firm (vertical fit); (2) HR policies cohere both across policy areas and across hierarchies (horizontal fit); and (3) HR practices are adjusted, accepted and used by line managers and employees as part of their everyday work (Schuler (1992: 18).
Resource-based strategic HRM can produce what Boxall and Purcell (2003) referred to as human resource advantage. The aim is to develop strategic capability. This means strategic fit between resources and opportunities, obtaining added value from the effective deployment of
ReplyDeleteresources, and developing people who can think and plan strategically in the sense that they understand the key strategic issues and ensure that what they do supports the achievement of the business’s strategic goals. In line with human capital theory, the resource-based view
emphasizes that investment in people increases their value to the fi rm
The resource-based view emphasizes the importance of creating firms that are ‘more intelligent and flexible than their competitors’ (Boxall, 1996) by hiring and developing more talented staff and by extending the skills base
ReplyDeleteArmstrong (2010) indicates that the “best practices” can be adopted by organizations in the mode of bench-marking. Therefore, still the ‘best fit’ is more important than ‘best practice’. It means, the innovation needs to be met with the business requirements, which are susceptible for varying from “best practice’ organizations. It needs to be able to demonstrate that the innovation is beneficial, practical and appropriate for the circumstances, and should be able to implement without much difficulties.
ReplyDeleteThe Best-practice model claims that certain bundles of HR activities exist which universally support companies in reaching a competitive advantage regardless of the organizational setting or industry (Redman and Wilkinson 2009). Which means that it contemplate those bundles of HR practice that can be applied in most of the organizational context to increase performance that helps produce better outcome. It implies a strong connection between HR practices and organizational performance that requires high commitment management (Paauwe & Boselie 2003).
ReplyDeleteThe best-fit model emphasizes that HR strategies and organizational strategies must be aligned. In other words, it is important to make sure the HR strategies are suitable in different circumstances along with the culture and operational process as well. Thus, according to Armstrong (2006, p.138), it is an idea that different HR strategies have to focus on a given needs of both the organization and its employees.
To put everything under consideration, both models offer organizations powerful tools for shaping human resource management processes. There will not be any absolute judgments on which approach works best, but best-fit models works better in overall, as it has a huge appeal to the HR practitioners due to the fact that it positions them as the first-level strategic partners in the process of management decision making.