Introduction
Debates in relation to human resource management and its environment continue to gain momentum although the focus has changed with time. The debates first began by trying to find the differences between human resource and employee management (Guest, 1991, p.150). The discussions moved on to scrutinize the associations between human resource approaches and the incorporation of HRM into business policies and practices. In addition, the degree to which human resource management can be utilized to accomplish competitive advantage in business was also analysed (Guest, 1991, p.152). Much of the progress has occurred over the past decades and has hastened changes in the way human resource operates. Currently, the contribution of HRM to enhance an organizations performance is being emphasized (Schuler and Jackson, 2005, p.17).
Fit as strategic integration
Fit as strategic integration recommends that strategies should be in tandem with business approaches. These strategies ought to match with the level of the business and even when the organization is experiencing changes. The expectations of the employees should also be in alignment with where the company is heading to through communication of organizations values and vision, transforming approaches into routine management and creating a consistent business culture, one that recognizes the needs of both the employees and the entire business. Organizations can therefore come up with strategies that fit the size of the organizations. Smaller business for instance cannot adopt comprehensive and demanding approaches such as having an excessive number of employees. Strategic integration guarantees that human resource administration is completely unified into strategic development, rules are comprehensible and line managers utilize human resource practices as a portion of their daily operations. According to Guest, if an integrated set of human resource practices is utilized in a comprehensible manner with an aim of achieving dedication, quality and suppleness, personal achievement will surely be realized. Under commitment the employees might feel connected with the organization hence behave in a way that fosters high achievement. Organizational employees that are flexible may adapt quickly to the business structure and also exhibit several skills at the same time. The employees may also provide high quality products and services.
Fit as contingency
The fit as contingency ensures that internal practices of an organization change the setting of the business and its policies. The “best fit” method is founded on the notion that there is no one particular way for strategy. Appropriate tactics must therefore be carefully chosen to fit particular requirements through the analysis of the organization’s setting internally for instance opportunities, limitations and threats, and externally for instance process, culture and technology. This model concentrates on the fit between organizational processes and the features of the circumstance. This approach does not allow the use of worldwide management strategies in all circumstances. This model does not con concur with the one best model as stated in past theories hence provides supple theories for business project and structure. This approach also shows the association between the external environment of the business, size, objectives and structure of the organization. According to this model, managers must therefore understand the environment and setting to the business before coming up with the right structure.
Fit as an ideal set of practices
Fit as an ideal set of practice proposes that internal organizational practices should mirror “best practice”. This approach is founded on the belief that adopting particular widely human resource management practices will enhance business performance. Various best practices such as employment security, self-governing teams, and reward associated with performance and continuous development have been created (Armstong, 2003, p. 25). A company may for instance may consider training options and analyze the kind of believes that can improve or bring down the organization. Organizations can therefore motivate their employees by compensating those who exhibit better performance for instance through promotions.
Fit as bundles
Fit as bundles propose that unique bundles of human resources practices can be created and executed. These practices may include appropriate management and competences which can be utilized in various settings to develop coherence across several functions guaranteeing that they balance and reinforce each other. For instance, if the general human resource approach is to enhance performance the sourcing tactics for competence founded staffing can be combined with progress strategies for capability- training alongside incentive policies to offer proficiency based pay. Employees may also have their own believes for instance and these are chief motivators in the way individuals behave. Recruiting competent individuals through personality tools and group interviews can be a good strategy but understanding and appreciating their beliefs can be another way of identifying other strategies.
Relevance and application of approaches to "Strategic Fit" between HR strategy and Business strategy to UK organizations
There are many different interpretations regarding the function of human resource. The more common interpretations of HR functions include; “people and performance”, “mooring strategy through individuals and work” and “developing a great work place” (Sears, 2011, p.34). However some human resource professionals have a different sense of function and purpose. One of the subsequent generation crew from the United Kingdom known as Sophie Ireland utilizes Guest’s strategies and explains how human resource functions in organizations. This point is illustrated through a pyramid beginning with core people processes at the bottom, followed by culture and people, delivering strategy and shaping the future being the last level on the pyramid. Most human resource inheritance can be found at the bottom layers of the pyramid. The bottom two levels appear to enhance performance through people. Moving up the pyramid, human resource begins to place much emphasis on the fitness for function of the organization presently and in future. The emphasis here is driving the business to do what is required in order to achieve success that lasts. If lasting success is to be achieved, the organization needs to assist itself (Sears, 2011, p.35). The human resource functions begin with comprehending the organization and the exceptional setting for instance the culture with which it operates just as Guest’s fit as contingency model suggests in instead of beginning with a methodical concept of the individual procedures and levers that must be dragged first. At this juncture, human resource has been perceived as its key function in the UK. It awakens an organization that is asleep and thus forms coalitions with anyone essential to back that program.
Similarly, human resource may decide to remove that energy from an organization, if this action appropriately attends to the interest of upcoming stakeholders. In the current times, human resource does not begin with any formulae. Guest and other human resource professionals seem to perceive human resource as a practical business course specializing on people. These leaders are trying to find answers to two queries all at once. They are trying to determine how a particular business is fit for the current times and for the future. Human resource leaders are simply not slaves to history, customer prospects and practices that they come across. In order to establish a sense of function that extents the entire pyramid necessitates a broader understanding of human resource purposes with a strong comprehension of business, circumstantial and administrative aspects. This has been defined in form of three “savvies” namely; contextual, organizational and business. Contextual savvy concerns itself with being attentive to the external aspects and major trends that impact the organization presently and in the future. External aspects according to Guest may entail culture, process and technology. Organizational savvy on the other hand entails the complicated comprehension of people and social aspects of an organization and how to operate smoothly with the exceptional individuals in the specific context. Lastly, business savvy entails a clear compression of how money is made and that which is most significant when analyzing the commercial wellbeing of the present business. A unique business focused program is developed which balances between present and future needs.
Guest therefore syndicates the three viewpoints provided by the three savvies. This human resource professional clearly reveals what is greatly needed in order to propel both short-term and lasting performance. The insightful method in turn allows a deeper situational attitude to human resource. An approach that provides exceptional value since it reveals what is required to really unravel present and future accomplishment. Uniting with human resource leaders to perceive and embrace the insightful mounting of human resource has been very fundamental over the past few years particularly in UK organizations. For instance, an organization which needs to reinvent its strategies requires totally different aspects for human resource, that which is comfortable tactically but requires cultural transition to fully succeed with the strategy. Currently, the significance of “consumer intimacy” is being debated upon as the most essential cultural turn required for propelling competitive gain in UK businesses customarily prejudiced to products and know-how. The duty of human resource in this case is to actually assist in closing the gap amongst defining the culture and living it at a particular measure.
This is totally dissimilar from the expectations of Guest’s approaches in BAE systems which emphasize on propelling the strategic recreation of the organization (Sears, 2011, p.36). “BAE systems” is a British international company dealing with security, defense and aerospace. The company’s headquarters are situated in London. The chief leaders with their partners in this case will employ Guest’s “Fit as strategic integration” where the company’s strategies will be aligned in tandem with business approaches. These strategies ought to match with the level of the business and even when the company undergoes some changes. In addition, the expectations of the employees will also be in aligned in accordance to the direction of the company through communication of organizations values and vision, transforming approaches into routine management and creating a consistent business culture. The backing and advancement that leaders will require in this case, is acquiring knowledge on how to manage organizational recreation. What has been demonstrated is the conveyance of a more supple and adoptable method to human resource. This method is molded by diverse requirements of organizations at various phases of their existence though the examples are inadequate. Over the past years, the belief that human resource tail is all most frequently wiggling the dog has been reinforced. Human resource beliefs seem to have occurred in a sneaky way and this is what is referred to as “best practice”.
Most human resource practices are operating in ways that seem almost similar. A senior professional confessed once that it did not matter which organization he worked for, but human resource appeared just the same. Capacity, leadership advancement, remuneration, engagement all seemed to be delivered just in the same manner. That which is referred to as “bets practice” began to appear disastrously the same. Research conducted in Asia revealed that those areas that had high demand and growing human resource, some professionals were not emphasizing on the beliefs that are relied upon in the Western nations. These individuals are utilizing a much more innovative and aligned influence that does not part and parcel of classical human resource actions. Shui On, a construction and building material company located in Hong kong is a good example (Sears, 2011, p.35).
The company realized that the market in Hong Kong could not provide them with any kind of advancement or simply existence. The company needed some kind of diversification into property improvement and progress into the first rising Chinese marketplace. In order to succeed in the Chinese market, there was need to obtain local knowledge and deep acquaintances. Guest’s “best fit” strategy played a vital role in identifying opportunities to employ experienced x-workers who had occupied top management stations in property and other connected businesses, resided in significant locations of China that the business wished to enlarge into and were about to retire or had already stopped working. These individuals were the best pilots of the unique setting and were enlisted to create new businesses in particular parts of the nation. The human resource professional behind the initiative demonstrated the three savvies extensively. The elderly population turn out to be the next wave of inventors and just in a few years, they delivered a major revolution that offered the mainland company dynamic lasting outcomes (Sears, 2011, p.36).
Conclusion
In simple terms, the purpose of human resource is to support long term performance. This entails obtaining a clear view regarding the fitness for purpose and function of the business, and subsequently being ready to manage a very clear and thought-provoking task in parts that may be way outside the core of the people as Guest suggests. In the modern world, human resource is only being adapted to that work that matters most. The human resource entity has moved above its service origins and present process and practices. Rather, human resource entails walking into business and determining what might be happening and what ought to be enhanced. It is not surprising that in Asia exhibited to outstanding practice where inventiveness had to be utilized in order to tackle extraordinary challenges. Human resource is simply dedicated to constructing something that stays for long (Sears, 2011, p.37).
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