With reference to UK and global perspectives, critically evaluate what it means for organisations to be strategic in their approach to Human Resource Management.

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With reference to UK and global perspectives, critically evaluate what it means for organisations to be strategic in their approach to Human Resource Management.

The versatility of today’s world has forced many businesses to be strategic in their practices and policies, with the Human resource now constituting an important part of the business much importance has been given to the development of a strategic approach in the HR department as well. This essay aims to firstly evaluate the strategic aspect of human resource management, exploring the three approaches in detail. It will then critically look at the HR practices and the strategic approaches adopted while specifically looking at the reward system.

There are various theoretical approaches taken to strategic human resource management. One of them is the Universalist approach, which looks at one ideal way of doing things. The approach is related to high organisational performances in all contexts irrespective of the competitive strategy (Derek Torrington, 2008). The Universalist approach is also known as the best practice view supports the idea that superior management practices are easily transferable and used in other organisations. In order for an organisation to perform well it should identify itself with another organisation known for its superior practices in certain functions, analyse these practices and then adapt them to their own organisation. (Agarwala, 2007). An example of this could be the adaptation of the formula one pit stop practices by the budget airline industry. Similar to the way formula one, pit stops operate certain practices have been adapted by the budget airlines to get their aircrafts ready to take off as soon as they land. The airlines make no money when on the ground. This approach not only looks at altering the business strategy but the human resource management strategy as well. As the best practice perspective suggests that organisations can improve their performances simply by implementing best practices or benchmarks as adopted by other organisations (Agarwala, 2007). The drawbacks of this approach as pointed out by Ogbonna and Whipp (1999) are that the best practice perspective believes that there is only one best way and that is it. The approach does not consider any other factors that might be used in order to achieve competitive advantage. Such one dimensional approaches cannot be completely taken over on their own as it puts the organisation at risk of neglecting other business needs and opportunities.

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The other approach to strategic human resource management is the contingency approach which is based on two critical forms of fit; the external fit also known as vertical integration in which the Human resource strategy aligns itself with the business strategy. The internal fit or better known as the horizontal integration is all about trying to get the Human resource activities and policies to be in sync with each other so to make a coherent whole to be applied consistently (Derek Torrington, 2008).  The notion in this approach is to for a human resource strategy to be developed in terms ...

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