Compare And Contrast The Best-Fit And Best Practice Approach To Strategic Human Resource Management

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Contemporary Human Resource Management Coursework 2015 1 Introduction Strategic Human Resource Management (SHRM) refers to the process that links the human resource policies with the strategic goals of a certain corporation. Bamberger and Meshoulam give the following definition of Strategic Human Resource Management: “the process by which organizations seek to link the human, social and intellectual capital of their members to the strategic needs of the firm” (Bratton and Gold, 2003). The main aim of SHRM is to ensure that the company has the correct set of skilled, dedicated and motivated employees that would help in achieving its future objectives. The need for strategic fit and the resourced based view are two of the main ideas that support SHRM. The strategic fit is a term that emphasizes the need to achieve consistency between the Human Resource (HR) strategies and the company’s business approach. According to Delery and Doty organizations that have a…show more content…
The strategic fit is a key feature of SHRM. It implies that in order to reach a success, a company’s HR practices have to be in congruence with its organizational objectives. The two most common key approaches to SHRM are best practice and best fit. Many businesses argue which one is the more efficient strategy in terms of improving the overall performance of an organization. According to Armstrong and Taylor, 2014 the best practice model refers to the belief of the existence of universal HR strategies that once adopted will lead to high quality level organizational performance. Such practices involve carefully selecting the right employees, providing training to ensure a well-educated and skilled workforce, setting certain policies that everyone should comply with, sharing information, team-working, high compensation consistent with the performance

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