TOPIC 4: THE EVOLUTION OF SHRM

VERTICAL FIT

• aligning HR practices based on the strategies that the company made.

HORIZONTAL FIT

• aligning HR practices with each other so they would work together.

STRATEGIC FIT

• associated with the issue of what should be done about formulating HR strategies where the basic choice is between the principles of ‘best fit’ or ‘best practice’

STRATEGIC FLEXIBILITY

• ability to adapt HR strategies to changing conditions

RESOURCE BASED VIEW

• principle of adopting a strategic approach to managing people

BUNDLING

• It means that in a “bundle,” practices work together toward the same goals, and combining more of these complementary practices boosts performance because they reinforce each other.

THE UNIVERSALISTIC PERSPECTIVE

• some HR practices are better than others and all organizations should adopt these best practices. There is a universal relationship between individual ‘best’ practices and firm performance

THE CONTINGENCY PERSPECTIVE

• in order to be effective, an organization’s HR policies must be consistent with other aspects of the organization. The primary contingency factor is the organization’s strategy.

THE CONFIGURATIONAL PERSPECTIVE

• In order to be effective, an organization must develop an HR system that achieves both horizontal and vertical fit. ideal configuration would be one with the highest degree of horizontal fit.’

THE BEST FIT APPROACH

• emphasizes that HR or people strategies should be related to the context of the organization, its circumstances and its type. there is a choice of models

STRATEGIC CONFIGURATION

• organizations will be more effective if they match one of the ideal types defined by theories

PROSPECTORS

• which operate in an environment characterized by rapid and unpredictable changes.

DEFENDERS

• which operate in a more stable and predictable environment than prospectors and engage in more long

ANALYSERS

• which are a combination of the prospector and defender types.

MULTI-STAKEHOLDER APPROACH

• implied that the ultimate goal of HRM was to serve shareholders, with little emphasis on other stakeholder groups like employees, customers, or the community.

STAKEHOLDER THEORY

• Organizations must consider the interests of all stakeholders (shareholders, employees, customers, government, society), not just financial returns.

THE BEHAVIORAL PERSPECTIVE

• this suggests that HRM practices affect firm performance by encouraging needed role behaviours that are aligned to the organization’s strategy.

THE AMO MODEL

• this states that performance depends on the individual’s ability, motivation and opportunity.

ECONOMIC CONDITIONS

• labor market trends, inflation, unemployment

TECHNOLOGICAL ADVANCEMENTS

• Automation, AI, digital tools

POLITICAL & LEGAL ENVIRONMENT

• employment laws, labor rights

SOCIO-CULTURAL TRENDS

• diversity, generational shifts

GLOBALIZATION

• international competition, remote work

BUSINESS STRATEGY

• HR must support strategic goals (growth, innovation, etc.)

ORGANIZATIONAL CULTURE

• shared values and behaviors

STRUCTURE AND SIZE

• centralized vs decentralized HR

LEADERSHIP STYLE

• influences HR priorities and engagement

ENVIRONMENTAL SCANNING

• looking for changes in the environment

STRATEGIC PLANNING

• planning of the strategies that need for the changes

ORGANIZATIONAL AGILITY

• to respond quickly to the changes