Strategic Human Resource Management

Strategic Human Resource Management

There are a multitude of definitions to describe the term strategic human resource management, the vast majority of which revolve around the conception that the term refers to a specific application of personnel to further the proficiency and productivity of a particular enterprise. There are two primary theories associated with strategic human resource management which conflict in ideology on one fairly important point: mutability. The first such theory, the best practice approach, virtually excludes mutability in its process and conceptualization of what produces effective human resource management. The other theory, the best-fit approach, hinges upon flexibility and change to further its notion of how strategic human resource management can maximize the output of a particular enterprise.

The best-practice approach sacrifices individuality and autonomy in its methodology for the sake of universality. This theory is based upon the fact that there exists a set, finite group of procedures for best organizing human resources that can produce optimum results in nearly all situations and organizations, regardless of industry, personnel features, company culture, and other autonomous variables which inherently differentiae businesses. Common best-practice policies include the implementation of protocol such as selective hiring, job security, ongoing training and sharing information to best accommodate employees in the workplace. Although all of these policies are certainly prudent, the best-practice theory does not account for individualized features or company components which separate the resources of one enterprise from another's, and which may be used as the basis for a competitive edge.

The best-fit approach, by contrast, utilizes the particularities of an enterprise's resources, the most important of which is its personnel, to maximize its productivity and distinguish it from its competitors. These practices vary on account of factors which are specific to individual businesses such as circumstances, type of organization, as well as context. The three primary models of the best-fit approach are identified as competitive strategy, life cycle, and strategic configuration. Competitive strategy revolves around the concept of company distinction in one or more areas such as innovation, cost leadership, and quality; the organization of human resources is based upon those areas which provide the means for a company to distinguish itself from competitors. The life cycle model enables the management of human resources to grow and change with an organization through traditional stages of development known as start-up, growth, maturity and decline. Strategic configuration is the process of an enterprise aligning its human resources strategy with one of several differentiated, pre-existing models.