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SHRM Approaches

The document discusses several common approaches to strategic human resource management: the best fit approach emphasizes ensuring HR strategies fit the organization's needs; the HR bundles approach focuses on combining internal and external fits and bundling complementary practices; the best practice approach assumes certain practices universally lead to better performance; the high-performance, high-commitment, and high-involvement approaches aim to improve performance through rigorous practices that enhance commitment and involvement; the resource capability approach views human resources as strategic assets that can provide competitive advantages.

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NIJTA JAIN 486
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83 views2 pages

SHRM Approaches

The document discusses several common approaches to strategic human resource management: the best fit approach emphasizes ensuring HR strategies fit the organization's needs; the HR bundles approach focuses on combining internal and external fits and bundling complementary practices; the best practice approach assumes certain practices universally lead to better performance; the high-performance, high-commitment, and high-involvement approaches aim to improve performance through rigorous practices that enhance commitment and involvement; the resource capability approach views human resources as strategic assets that can provide competitive advantages.

Uploaded by

NIJTA JAIN 486
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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SHRM Approaches

The most common approaches are:

The Best Fit Approach or Contingency:

The best fit approach emphasizes the importance of ensuring that HR strategies are appropriate to
the circumstances of the organization, including its culture, operational processes and external
environment. HR strategies have to take account of the particular needs of both the organization and
its people. Thus it is acceptable by most people that "Best Fit" is more appropriate than "Best
Practice".

The HR Bundles or Configuration Approach:

A strategy's success turns on combining "vertical" or external fit and "horizontal" or internal fit.' A
firm with bundles of HR practices should have a higher level of performance, providing it also
achieves high levels of fit with its competitive strategy. Emphasis is given to the importance of
'bundling'- the development and implementation of several HR practices together so that they are
interrelated and therefore complement and reinforce each other. This is the process of horizontal
integration.

The Best Practice Approach or Universalistic approach

This approach is based on the assumption that there is a set of best HRM practices and that adopting
them will inevitably lead to superior organizational performance.

High- Performance Management Approach:

High-performance management or high-performance working aims to make an impact on the


performance of the organization in such areas as productivity, quality, levels of customer service,
growth and profits. High- performance management practices includes rigorous recruitment and
selection procedures, extensive and relevant training and management development activities,
incentive pay systems and performance management processes.

High Commitment Management Approach:

One of the defining characteristics of HRM is its emphasis on the importance of enhancing mutual
commitment. It can be described as, "a form of management which is aimed at eliciting a
commitment so that behavior is primarily self regulated rather than controlled by sanctions and
pressures external to the individual, and relations within the organization are based, on high levels of
trust".

High Involvement Management Approach:

High-involvement work practices are a specific set of human resource practices that focus on
employee decision making, power, and access to information, training and incentives. It is
management system based on commitment and involvement, as opposed to the old bureaucratic
model based on control. The underlying hypothesis is that employees will increase their work
involvement if they are given the opportunity to control and understand their work.

Resource Capability Approach:

The resource capability approach regards the firm as a bundle of tangible and intangible resources
and capabilities required for product/market competition. Human resources are seen as a major
source of competitive advantage. Resource capability approach is concerned with the acquisition,
development and retention of human or intellectual capital. It will focus on how added value can be
obtained by treating people as strategic assets in the sense that they perform activities that create
advantage in particular markets

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