Relevance of Fit Between Hr Strategy and Business Strategy
INTRODUCTION
The aim of this paper is to discuss the relevance of fit between HR strategy and Business strategy.
Concept of ‘fit’ in strategic HRM
Nadler and Tushman (1980) defined congruence or fit as "the degree to which the needs demands, goals, objectives and/or structure of one component are consistent with the needs, demands, goals, objectives, and/or structure of another component” (as cited in Boon, 2008).
Fit between HR Strategy and business strategy
According to U.S. Office of Personnel Management (1999), fit between HR strategy and business strategy means to integrate decisions about people with decisions about the results an organization is trying to obtain.
To be able to achieve fit between HR strategy and business strategy, the HR Managers have to identify the real goals of the business, the business way, how to reach the goals and the real needs of the business from Human Resources (Luke, 2010). Some management tend to put the needs of their employees first, but this is not what the business usually asks for.
Fit operates vertically and horizontally (Scribner et al, 2008). Vertical fit refers to the alignment of HR practices with the specific organizational context, and horizontal fit refers to the alignment of HR practices into a coherent system of practices that support one another (Delery, 1998).
Relevance of fit between business strategy and SHRM
The central debate about fit between HR strategy and business strategy is one of the most important to emerge in recent years (Helen Newell and Harry Scarbrough, 2002). It hinges on two broad approaches: the ‘universalistic’ and ‘contingency’ (Natalie Turner, n.d).
The universalistic perspective “best practice” argues that some HR practices are universally effective; regardless in which context they are implemented (Boom, 2008). These practices include items such as (Newell & Scarbrough, 2002), employment security, selective hiring, self-managed teams or team working, high pay contingent on
The aim of this paper is to discuss the relevance of fit between HR strategy and Business strategy.
Concept of ‘fit’ in strategic HRM
Nadler and Tushman (1980) defined congruence or fit as "the degree to which the needs demands, goals, objectives and/or structure of one component are consistent with the needs, demands, goals, objectives, and/or structure of another component” (as cited in Boon, 2008).
Fit between HR Strategy and business strategy
According to U.S. Office of Personnel Management (1999), fit between HR strategy and business strategy means to integrate decisions about people with decisions about the results an organization is trying to obtain.
To be able to achieve fit between HR strategy and business strategy, the HR Managers have to identify the real goals of the business, the business way, how to reach the goals and the real needs of the business from Human Resources (Luke, 2010). Some management tend to put the needs of their employees first, but this is not what the business usually asks for.
Fit operates vertically and horizontally (Scribner et al, 2008). Vertical fit refers to the alignment of HR practices with the specific organizational context, and horizontal fit refers to the alignment of HR practices into a coherent system of practices that support one another (Delery, 1998).
Relevance of fit between business strategy and SHRM
The central debate about fit between HR strategy and business strategy is one of the most important to emerge in recent years (Helen Newell and Harry Scarbrough, 2002). It hinges on two broad approaches: the ‘universalistic’ and ‘contingency’ (Natalie Turner, n.d).
The universalistic perspective “best practice” argues that some HR practices are universally effective; regardless in which context they are implemented (Boom, 2008). These practices include items such as (Newell & Scarbrough, 2002), employment security, selective hiring, self-managed teams or team working, high pay contingent on