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500 Word Essay On 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 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 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 organisation (Boselie, 2016). Reward system is considered as one of the policy areas that need to be interconnected and complement the different other policies that include the selection of employee, training as well as the appraisal of employees based on performance. Further, the Wood (2018) analyses that both the theories of strategic human resource management is formed with the motive to accomplish the high performance within the organisation. According to Wright, (2018), the matching models can classify these approaches because of their common aim that is to contest the HR strategy linking it with that of the business.

Best-fit or Best practice organisation needs related to the personnel and employees are required to be acknowledged. The approaches include staffing as well as hiring strategies and procedures, which are generally followed by the company. In the present market, companies found that competition is increasing and this is the reason every company is willing to hire and retain the best employees that are present in the market (Brewster, 2017). Thus, this is happening because of the need of the employees for the effective work within the organisation.

The approaches of best-fit, as well as best practice, agree with the fact that externally competitive reward packages are essential with the motive to attract and retain the skills as well as qualified employees. Thus, these approaches are applied by the company with the motive to provide attractive rewards to attract and retain the employees (Storey, Ulrich and Wright, 2019). For example, Deloitte, a well-known company who offers a good salary to employees but with it additional rewards that are offered include:

  • Holidays, starting at 25 days a year
  • Pension arrangement
  • Personal accident insurance
  • Life assurance of six times your core salary
  • Occupational sick pay
  • Reimbursement for expenses

The approach of best fit majorly emphasis on the importance of attracting as well as retaining the qualified employees. The approach of best fit majorly focuses on the reward system that company need to distribute rewards in an effective manner so that the personnel or employees within the organisation feel valuable and satisfied while comparing their rewards with the other individuals who are performing the similar jobs. Considering the view of Brewster, Chung and Sparrow, (2016), the good performers within the organisation tend to work with the organisation when their performance is effectively acknowledged as well as rewarding. Moreover, the best practice shows that the labour markets are far away from effortlessly efficient. There is the presence of the association between the organisation payment as well as the quality of workforce that contribute in attracting the employees.

Thus, in end, this can be said that in SHRM, the ideas of the best fit and best practice have some of the similar points which include the HR approaches agree with the fact the reward practice need to be consistent with other HR practice.

Although, this has been found that there is a presence of fundamental disagreement that is best-fit policies are contingent. The policies in the best fit are majorly developed with the motive to preserve a line of vision with the strategy in an effective manner. This simply means that the reward system of the organisation will be single and should possibly bring the change with the quite majorly adjustments that are linked to the strategy of the organisation. The HR strategy of the company is influenced by different contingent factors, which include a business strategy that is adopted by the company, size of the company, type of technology as well as the labour market. According to Collings, Wood and Szamosi, 2018, the contingency approach is defined as a process of decision making that is rarely applied in planning the effective HR strategies. Thus, this approach is majorly used by the company so that they can make a quick and beneficial HR decision that can help them in maintaining effective personnel within the organisation.  

The best-fit approach is a contrast to the best practice methods and it is considered as the universal approach. The bundle of policy does not change regardless of the fact associated with the organisation strategic thrust. This provides the suggested that similar sort of reward system will succeed within the organisation and at the workplace. This is witnessed that both best-fit and best practice differs in this concern. In this approach, the HR manager begins with identifying the best practice and then provides HR with a high profile to get the top-level promise, sell it, do it, as well as quantity it with the prize- winners (Armstrong, 2011). However, this method is very different from the approach of best fit. In the approach of best fit, the HR managers of the company determine the external fit that is related to the marketing, operational and many other strategies of the company.

According to the Brewster,  Mayrhofer and Farndale, (2018), another different that is found in the approaches of SHRM is related to the view related to the influence of the pay in the performance of people.

The system of the best fit in SHRM reflects the high margin of the confidence that is linked with the pay to employees that works as a motivator. This approach includes the implementation of the expectancy theory that majorly believes that the employees within the company will perform maximum improve if they have the faith that all their efforts will be rewarded. Thus, this has been found that the approach majorly emphasises on the aspects of financial terms, which are used as a driver majorly for the corporate human resource. Considering the view of Bakshi, Mathur, Bhagat and Kalyankar (2014), the best-fit proponents view to the rewards as the stick as well as the carrot. This has been evident by the author that pay varies a lot with the performance of the employees, as the excellent performance of the employees will enhance their large pay differential that works as a reward for their performance. Contrasting this, the employees who are not performing effectively with the company will not be able to attain high pay.  

Comparing this that pay influences the performance of personnel in the organisation, this has been found that best practice does not really have faith in in the major impact of pay that best practice promoters want to show (Armstrong, 2011). This has been found that the organisations pay more as an influence that helps to avoid the disappointment and offers the acknowledgement in a symbolic manner that means that the employees are valued. In the best practice, this is evidence that the rewards for the best practice supporters can finish that trust as well as the relationship that is considered as the base of the administration committee. Thus, this indicate them to encourage the system of rewards that do not discriminate with the compressed pay groups with equivalent pay for all the team members with the shared encouragements.

In the research Cania, 2014 said that this has been determined that the best practice majorly includes the policies which are performed by the HR of the company. These policies include the reward system policies that can create an influence on the management of the personnel by the corporation. However, comparing it with the best fit, it is believed that the reward system of the company needs to be aligned with the strategy of the company. The organization works with the motive to provide the rewards to the company so that they remain associated and helps the company to achieve the desired objectives as well as gaols (Lin and Sanders, 2017) The reward system leads to the motivation among the employees to work in an effective manner and to retain within the organisation. This motivation and retention of the employees support the strategy that is formed by the company.

Moreover, the set of HR practices that are introduced by the company leads to high motivation as well as improved employee commitment. Thus, the best practice employee is majorly the companies who remain the employee-centric as they give the importance to the employees as they treat them like the assets of the company. For instance; the FedEx corporation is the company who work with the motive to track the record to achieve success. The company believed that its success majorly lies with the fact that how effectively employees are performing (Reynolds, 2018). The company value their customers and this is discovered that they practice the concept of the People-service-profit with the motive to provide the care and value to the employees. The implementation of the approach by the company helps them to maintain the employees and to keep motivating them to work effectively. Most of the employees retain within the organisation because the company is offering additional benefits to their employees.

On the other hand, the best-fit approach of SHRM strategy results in accomplishing the competitive advantage. In the competitive world, every company wants to establish a competitive advantage so that they can easily face the competitor present in the market. There are companies who form the strategies so that they can meet the strategies of the company. The accomplishment of the strategies will help to maintain the competitive advantage (Hashim, Ismail and Hassan, (2016). In the present world, companies with skilled personnel are improving their performance with the effective use of knowledge and skills of workers. Thus, the approach of the best fit is applied by numerous companies who are dealing in a tough market.

At the end of the paper, this has been found that the practice of strategic human resource management is common within the organisation. The organisation conducted the strategic human resource management with the motive to develop, attract and retaining the employees as these employees are considered as the assets of the company. Strategic human resources management within the company is the set of the managerial decisions actions that help the company in identifying the long run performance that is performed by the organisation. SHRM practice generally includes the two major approaches that are best-fit and best practice. The approach of best fit and best practice is deeply discussed which shows how they are linked with the common theme that is to attract and retain the employees within the organisation. The best-fit approach is majorly used with the motive to generate a competitive advantage for the company. However, comparing it with the best practice in SHRM, the company implement the best practice with the motive to generate the motivation and high level of commitment among the employees. The major similarity that is present in the approaches is that they include the reward system. Thus, both the approaches have a positive relationship of rewards that is implemented by the company. These approaches of best fit and best practice varies a lot due to which the differences between both the approaches are discussed. In addition, the concepts are supported with the example of the real-life companies who apply the approaches of the strategic human resources management.


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Armstrong, M. and Taylor, S. (2014) Armstrong’s handbook of human resource management practice. Kogan Page Publishers.

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Georgia Taylor

Hi, I am Georgia Taylor. I am a certified midwife nurse. Though I am a nurse by profession, I could never let my passion for reading and writing subside. Caring for ailing people gives me as much joy as does helping out students trying to earn their degrees. While working hard during my MSN days, I saw how my non-native batch mates struggled to work on English essays and assignments. As much as their dreams of getting into the medical field mattered to them, their struggle with English essay tasks was real and challenging. That's what ignited the desire to be a guide to such people. From helping my fellows to becoming a part-time English essay writer, the journey has been quite exciting. As my profession teaches us for being kind, that's my way of abiding by this responsibility. 

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