Understanding Strategic Human Resource Management and its Best Fit and Best Practice Approaches

Strategic Human Resource Management
Critically analyses, compare and contrasts the best fit as well as the best approach in SHRM
3/27/2019

Strategic Human Resource Management 1
Strategic Human Resource Management
Strategic human resources management refers to the practice that is conducted by the company
with the motive to attract, develop, reward, as well as retain the employees within the
organisation. This will offer the benefit to both the employees as individual as well as the
organisation as whole. In Strategic human resources management, the company consider the best
fit as well as the best approach while performing the business operations. The best fit and best
approach that are present in SHRM has been analysed considering the views of the different
researcher. This research includes the agreement and disagreement views on the concept of best
fit and best approach. In addition, the comparison between the best fit and best approach of
SHRM has been done in the paper. This comparison helps in understanding the concept due to
which these are applied by the company while performing operations related to human resource
management.
According to Noe, Hollenbeck, Gerhart, and Wright, 2017 HR departments that practice in the
strategic human resource management do not work on the independent basis, as they need to
interact with the different departments that are present within the organisation. The motive to
apply the SHRM is to understand their goals as well as to form the strategies that get align with
the objectives of the organisation. The areas of the HR department show and assist the goals of
the remaining administration (Wright, 2018). The strategic HRM is considered as a partner when
it comes to the success of the company as to oppose to the necessity for legal compliance as well
as compensation. This has been witnessed that the goals of the human resource department show
and provide support to the objectives of the rest of the organisation. Contradicting this, Bailey,
Mankin, Kelliher and Garavan, 2018 says that the Strategic HRM is considered as the partner in

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organisation success as it is opposed to the need for legal return as well as compliance. The
strategic HRM make use of the talent as well as opportunities that are present at the department
of HR within the company as it helps in making the other departments much stronger as well as
effective.
The rapid and emerging change in the business world presently makes the most of the companies
realised that their employees are considered as an asset for the company that is essential for the
resources of the organisation. The organisations need to focus on their planning as well as on
implementing the ideal model as well as a strategy that is used for integration as well as on the
connection of the HR for the success and growth of the organisation (Cascio, 2015). In the
research, this has been found that the best fit and best practice approach are majorly used in the
system of strategic human resource management that is implemented in the specific area of the
reward system. Each of the approaches is attempted with the motive to explain the way through
which the HR policies in general as well as reward policies, in particular, can lead to an increase
in the effectiveness of the organisational.
Considering the view of the Collings, Wood and Szamosi, 2018, “Best-fit” perspective claims
that the reward system of company is required to align with the motive to provide the support to
the business strategy of the company with the motive to accomplish the competitive advantage.
In addition, Armstrong and Taylor, (2014) said that the idea of different HR strategies needs to
majorly emphasise on the allocated needs of the organisation as well as its employees. It is
essential for the management of the organisation to bring the major changes that fit best to the
working. It has been found that culture, structure, behaviour, the process of work, technology is
considered as the criteria in the analysis of the needs of the organisation. For instance; Best fit
HR planning tool is used by the real world organisation McDonald’s. The model involves the

Strategic Human Resource Management 3
new product line, developing the staff as well as recruiting the personnel with the motive to meet
the assigned objectives of the company (Boon, 2016). The model of best fit is appropriate for the
managers of the company as they can easily manage the long term as well as short term HR
planning by supporting the requirement, feasibility, as well as the availability. The criticism for
the model is that it limits the strategy that the subject of diverse multiple alternating
contingencies as well as this model limits the strategy as it becomes difficult for the HR system
of the company to handle the new challenges.
On the other hand, the “Best practice” states that there is the presence of buddle of policies
related to HR that majorly include the reward system as it contributes in improving the
motivation and commitment of the personnel who are considered as the important organisation's
competitive advantage (Malik, 2018). The organisation applies this practice with the motive to
increase the performance of the company that will help to enhance the better outcome. This has
been found in the literature that the basis of this model is founded on the knowledge of
advantage of the performance of the organisation as well as the Pfeffer’s model that is
considered as a good example of the set. The model majorly shows the seven different important
HR practices that majorly include employee recruitment, selection, hiring, self-managed teams,
as well as high compensation (Rao, 2016). The model, which is presented, is subject to the
different seven criticisms. It might result in the deterioration of the collaboration of the
employee. The implementation of the practice will lead to the initiating the mutual prohibitive
combination related to the team working as well as compensation that is based on the
performance which involved the possibility of the high risk.
The report of the two approaches in the SHRM specifies that there is the presence of one major
area of contract. HR policies should be consistent when comes to applicability within the