BEST FIT HRM.

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Presentation transcript:

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