4-2 A tale of two cities: HRM and Strategy

Question 1

Main people management strategies

Answer 1

1. Best Practice Approach
2. Best Fit Approach
3. Resource Based Approach

Question 2

1. Best Practice Approach is the

Answer 2

universalist strategy to people management. This approach is also known as a prescriptive approach to HR strategy as it claims that all successful and effective people management policies and practices are universal and can be applied to any given context irrespective of differences.

Question 3

The Best Practice Approach and HPWS

Answer 3

The idea of HPWS in itself is universalist perspective i.e. there is one single bundle which is effective for all organisations irrespective of sectoral or contextual differences.
Examples include,

1. Competency-based selection and promotion
2. Focused skill development
3. Reward and performance management to attract, retain and motivate high-performance employees
4. Participation and empowerment

Question 4

Best Fit Approach is based

Answer 4

on the contingency framework; one size does not fit all.

HR practices depend upon:

1. the generic strategy of the organisation, for example, cost, quality or innovation
2. the stage of life cycle ‑whether an organisation is start-up, growth, mature or in decline

Question 5

The best fit approach advocates:

Answer 5

that the people management policies and practices need to identify required employee behaviours and supportive HR practices which align vertically with business strategy and horizontally with other HR practices.

A classic example of the best fit approach is the Google’s Oxygen Project that we looked at in Session 1.

Question 6

Resource Based Approach is explains

Answer 6

that competitive advantage is underpinned by the resources and activities (core competencies) of an organisation that are:

1. Valuable and scarce
2. Inimitable - hard to copy
3. Non-substitutable
4. Appropriable - can generate high performance and superior return for shareholders.