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Critically discuss the Best Fit approach to strategic human resource management (HRM)

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Introduction

Business Administration "Critically discuss the Best Fit approach to strategic human resource management (HRM)" Essay question: Critically discuss the Best Fit approach to strategic human resource management (HRM) This essay strives to critically discuss the Best Fit approach to strategic human resource management (SHRM). To begin the essay key terms such as 'best fit' and 'strategic human resource management' will be defined. This will follow with provided examples of 'best fit' in SHRM. Pros and cons of the model will be identified in the essay in order to make effective analysis of all the aspects of the subject that will follow with critical evaluation. For successful essay key points will be presented in the main body and backed up with empirical evidence or real life examples that will aid in providing constructive criticism. In order to examine the approach on a broader scale the essay will also mention another dominant normative model in HRM, 'Best Practice' approach. It is important to look in to similarities and differences between the two to highlight the areas of possible improvement of the approach. The essay will also look in depth at best fit models diversity at different stages of organisation's development. Starts up organisations are more likely to have informal and more flexible style of HRM and through stages of firm's development and maturity it changes mutually. Organisation adapts more formal and professional attitude and increase volume and variety of employees simultaneously. The difficulty that organisations face while diversifying will be analysed later in the essay. As well as the complexity and tension that large firms have to overcome when try to diversify rapidly when being inflexible. The paper will conclude with assessment of how this research into strategic human resource management (SHRM) ...read more.

Middle

Eventually M&S understanding of environmental factors has lead to failure. Therefore M&S's best fit approach was unsuccessful. Than competitive strategy is in its developmental stage best 'fit' is defined for the organisation (Boxall and Purcell, 2003). This is done through adapting innovation that involves recruiting people with best skills for the job, quality enhancement through equity in rewarding people according to their performances and training them in order to achieve quality targets. Along with cost leadership that is effective tool in reducing the cost through productivity planning, finding and developing skilled people (Armstrong, 1999 ). This is supported by J and J (2003) that has also highlighted that in matching (best fit) "HR strategy with overall business strategy; organisation can gain competitive advantage from innovation, quality and cost reduction." Organisations need to develop human capital resources in order to sustain competitive advantage and only by aligning HR to corporate strategy it is difficult to achieve (Pilbeam and Corbridge, 2002). However competitive strategy is relative to the market organisation operates in. For example for IT skill in highly competitive market it was observed that competitive strategy is unsuccessful. Criticism states that competitive strategy fails to recognise importance of employee's role in the organisation. And some employee's have some strong bargaining power as a result of important skills that they possess (Boxall 1998; Coff 1997). Another weakness of the model is its oversimplification of competitive strategy explanation. Good competitive strategy is likely to be multidimensional and reflective of fluctuations in the industry. It is ineffective to have competitive strategy which is false in a specific environment (Boxall, 1998). The environment is constantly changing therefore it would be useful to implement competitive strategy that compliments flexibility in constantly changing and competitive environment that could serve well in the future. ...read more.

Conclusion

Academy of Management Journal, 39, pp. 802-835. Gerry, J. & Scholes, K. (2002) "Exploring Corporate Strategy", London: Prentice Hall. Jackson, S. (1987) "Linking competitive strategies and human resource management practices" Academy c!fMniingment Extrutiiv, 1: 3, 207-29. Kinnie, N., Hutchinson, S, Purcell, J., Rayton, B., Swart, J. (2005) Satisfaction with HR practices and commitment to the organisation: why one size does not fit all. Human Resource Management Journal, Volume 15, Issue 4, Page 9-29, Mac Duffie, J.P. (1995) "Human Resource Bundle and manufacturing performance, industrial relations review", vol. 48, No. 2, pp.199-221. Marlow S. (2006) "Human resource management in smaller firms: A contradiction in terms". Human Resource Management Review Volume 16, Issue 4, Pages 467-477 Exploring the Intersection of HRM and Entrepreneurship Maund, L (2001) 'Adantages and disadvantages of Porter's competitive strategies' McGregor D. (1964) "Leadership and Motivation". - New York Mullins L, (2002), "Management & Organisational Behaviour", Pearson Education Ltd, Harlow 6th Edition Pfeffer, J. (1996) `When it comes to � best practices�, why do smart organizations occasionally do dumb things?'. Organizational Dynamics, Summer, 33-44. Pillbeam, S. & Corbridge, M. (2002) "People Resourcing - HRM in Practice" 2nd edition, England: Pearson Education Limited. Purcell, J. (1999) "Best practice and best fit: Chimera or cul-de-sac?" Human resource Management Journal Schuler, R. S. Jackson, S. E. (2004): Human resource management in context. In: R. Blanpain/C. Engels (eds.): Comparative labour law and industrial relations in industrialised market economies. The Hague: Kluwer Law International. Sels, L., et al (2003) "HOW HRM AFFECTS CORPORATE FINANCIAL PERFORMANCE" : EVIDENCE FROM BELGIAN SMEs. Working Paper Steunpunt OOI Snell S., Shadur, M. & Wright, P., (2001) "Human Resource Strategy: The Era of our Ways", in: The Blackwell Handbook of Strategic Management, Chapter 23 p. 627 - 648. Torrington, D., Hall, L., Taylor, S., (2008) 7th ed., Human Resource Management, Harlow: Prentice Hall/Financial Times ?? ?? ?? ?? [Type text] ...read more.

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