Critically compare and contrast the 'Best Fit', 'Best Practice' and 'Resource-Based View', models of HRM strategy and explain how each approach is argued to contribute to improved organisational performance.
Strategy is the skill and planning that are involved in governing resources. In a business sense this relates to "a set of ideas, policies and practices which management adopt in order to achieve a people management objective" in studying Human Resource Management it is important to differentiate between the 'operational' and the 'strategic' methods of managing a workforce. A Strategic focus will require operating HR initiatives with an eye to long term corporate strategies and objectives. To focus on strategy would mean tackle and solve business problems through efficient people management policies and strategies. An operational focus is one that has an eye to the everyday management of a firm's workforce to comply with legal regulations regarding employment. To compare these three HR practices it is important to first outline and evaluate each approach to human resource management.
The four HRM strategies are the;
Classical Approach- a comprehensive examination of the internal resources and external environment. Stressing the importance of "long term, formal and analytical planning" (Wilton, N., 2011). Flawed on the basis of over simplifying strategic decision making, separating "operational practices for higher level strategy information" (Wilton, N 2011). As a result the classical approach can lead to the over simplification of processes and inflexibility.
Evolutionary Approach- advocates the use of analysing the competitive environment to look for competitive opportunities and warning signs, also stating that thought out plans can only lead to short run advantage. Lots of information is considered in the evolutionary approach (more so than the classical) and its strengths come through flexibility to the changing business environment both internally and externally, as...