BEST FIT HRM

STRATEGI
 BEST PRACTICES
 BEST FIT
 RBV – RESOURCE-BASED VIEW
Meaning of Strategy
 Derived from board intentions of
decision makers
 Encompass the enterprise as a whole
 Co-ordinate resources in a meaningful
way
 Identify future actions
 Determine the scope of the organization
 Typology of strategy
Processes
Deliberate
CLASSICAL SYSTEMIC

Outcomes
Profit maximising Pluralistic

EVOLUTIONARY PROCESSUAL
Emergent
Whittington and Strategy

 Classical

 Evolutionary

 Processual

 Systemic
Best fit: Lifecycle models
 Start-up: flexible working pattern, less formal, no HR specalist, cost

effective HR

 Growth: retain expertise, ensure earlier commitment, SOP introduced,

need of specialist become apparent

 Maturity: formalised procedures, control of labour cost,

 Decline: rationalisation and redundancy

Sisson and Storey (2000)

Best fit: Competitive advantage models

 Cost reduction

 Quality enhancement

 Innovation
Delery and Doty
Strategy SDM

Defender Internal

Prospector Market-type
Best fit: Strategic configurations 1
Defenders-internal employment systems
 Internal labour markets
 Developmental appraisals
 Strong culture
 Employment security
Best fit: Strategic configurations 2
Prospectors-market employment systems
 External recruitment
 Results-oriented appraisal
 Short-term training
 Voice is unimportant
Limitations of best fit models
 Based on classical versions of
strategy
 Deterministic and one-way
 Managers are omniscient and
omnipotent
 Static
 Little empirical support
Blockages and barriers
 Supervisors do not identify with
management
 Work overload
 Lack of training
 Supervisors want flexibility
 Management by omission