The Design and Implementation of Strategic Human Resource Practices

The concept of fit is very subjective, it is not measurable, yet it is treated as if it can be targeted or observed.

SHRM is gaining widespread popularity due to the inducement it provides of supporting the organizational strategy and help it to gain competitive advantage.

Link between Human Resource Management and Organizational Strategy

One of the most famous works on linking strategy with human resource management is by Miles and Snow (1984). They have classified three types of organizational strategies and described the HR strategy that will be suitable in each case (Ogbonna & Whipp, 2006). In case of ‘defender strategy’ where organizations aim for steady growth in market share, the human resource management should be in-house, have selective recruitment, adequate training and should have a policy of promotion-within. In case of firms aiming for speedy growth or having ‘prospector strategy’, they should have a flexible workforce which can multi-task and perform assignment having a wide range of technical resources. Third is the ‘analyser strategy’ in which the firm emphasis on an exclusive product and promotes throughout its lifecycle, the human resources required for it are people who can have a long-lasting relationship with the firm, are open to learning, training and can contribute their maximum to the firm.

This importance of this topic can be judged by the large number of researches that were conducted on it subsequently. Some of the prominent works include Bird and Beecher’s work on links between business strategies in 1995; Porter’s observation of how effectual HRM can help in bringing down cost and improve efficiency; Lado and Wilson’s work of how HRM can help businesses gain competitive advantage. In all these e...

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...tion, that are these actions also best practices?

The HR department needs to ensure if there is strategic or vertical fit as well as horizontal fit to achieve organizational success.

Source: (Boselie, Dietz, & Boon, 2005)

The graph above shows the relationship between human resource management and performance of a firm. This can occur through timely and appropriate training, removing obstacles in performance etc.

In an organization the strategic planning should involve HR department, then secondary objectives should be derived accordingly. The modifications in structure, systems, and HR policies should align the firm with the strategy.

HR department should ensure that people who are hired have appropriate competencies, should be trained and motivated enough and compensated for aligning their efforts towards fulfilling organizational goals (Hardy, 1996)