Strategic Fit Framework

Types of Strategic Fit

Fit as strategic interaction (Best Fit
approach) :Comparing & Linking HR
practices with business strategy
Fit as Contingency : Ensuring the internal
alignment need to respond to particular
external factors.
Fit as an ideal set of practices : best
practices that firms can adopt.
Fit as Gestalt : It focuses on finding the
combination of practices.
Fit as Bundles : Framing different practices
as configuration.
Approaches for Development HR
Strategy
Linking business strategy and HR strategy
HR bundles approaches
Best practices approach
Linking business strategy and HR strategy

It is focuses on the strategies need to be

adopted to the firms conditions and
environment refering with business
strategies.
Comparing with main Objectives, mission ,
vision statement of the organisation.
Its known as vertical fit or Horizontal Fit,
which deals with alignment with features of
business strategy.
HR classification
Understanding business strategy
 Product or Business Life cycle
Type of products

Note: comparing with HRM models, Business

strategy models.
HR Bundle Approach
Its an configuration of HR practices or
practicing different HR practices to
reinforce the Business & HR Practices.
Richardson & Thompson Believe that
strategy success turns to combining
vertical fit or internal fit.
Here organisation considered different
practices followed by the external
environment or their competitors .
HR Best practices Approaches

This approach is preferred as Universal

approach , implement best practices and
measure the performance to get best
output.
Considering all HRM model and Business
Strategy can create new innovative best
HR practices. From Employment generation
to welfare system of employees.
Ex: Wal-Mart and Google HR practices.