Strategic Human Resource Management and Context - best practice versus best fit

8 important questions on Strategic Human Resource Management and Context - best practice versus best fit

What is the difference between the two approaches n the alignment or fit between organizational strategy and HR strategy?

Best fit school; HRM is most effectively when it fits with the internal and external context.

Best practices school; HRM is most effectively when they make use of the best practices when managing people.

Why is a best-fit approach best instead of a best practices approach?

Because a best-practices argue that all firms will perform better if they identify and adopt the bundle of HR practices in the way they manage people. However, this might be helpful for your organization, but not for others. The best-fit approach argues that there needs to be an alignment between the internal and external context and HRM strategy.

What are the 5 needs of an individual and what is the key assumption?

1. Need for autonomy
2. Need for competence
3. Need for relatedness or beloningingness
4. Need for structure
5. Need for psychological safety

Key assumption is that HR policies and practices/leadership can influence individuals' basic psychological need satisfaction and performance.

Selective recruitment and selection

the focus is on the selective part, where you are trying to recruit and select the best person for the job and the organization. (By using
intelligence tests, structured interviews etc.)

Performance-related pay (PRP)

Reward that is linked to the profits of an organization.
Bonuses for when you perform well as an individual or a team.

Information sharing and communication

through the Intranet and other media. The top management support and involvement in communication is crucial for the

Reduction of status differences

no status symbols, for example no executive parking spaces.

Best-practice proposition (Pfeffer):

states that specific HR practices are universally applicable and successful when used.
  • Strength: simplicity and clarity
  • Criticism: lack of attention to contextual factors like national differences.

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart