L4 Flashcards
Three different perspectives of HR strategy
Universalistic perspective
The contingency perspective
The configurational perspective
The Universalistic perspective
Best practise: There is a set of best HRM practices which are universal in the sense that they are best in any situation.
HYPOTHESIS: If we implement a certain practice then we can expect higher profitability and less employee turnover. This requires: Competence, Commitment, Motivation and effective job design!!
Best practise for whom, shareholder or stakeholder?
Pfeffer’s High-commitment HR Practices
The Contingency Perspective
Best fit: Emphasizes that HR strategies should be congruent with the context and circumstances of the organization.
Best fit involves vertical integration or alignment between the organizationʼs business and HR strategies.
Two models for best fit is:
- competitive strategy (innovation and differenciation, quality and cost-leadership)
- organizational life-cycle (5 steps: start-up, growth, maturity, crisis and decline/ renewal )
Porter’s generic strategies (Belongs to the contingency/best fit perspective)
3 different strategies
1) Cost leadership: The business produces at low cost as their competitive advantage.
2) Differentiation / Innovation: The business tries to be unique and offers something that other competitors cannot (eg. High quality).
3) Focus / Quality: Gains their competitive advantage by focusing on a narrow industry/market.
Organizational life cycle connected with the three overall HR-strategies
Birth / Start-up = Hig committment management
Growth = High involvment management
Maturity = High performance management
When crisis occurs the organization goas against renewal or decline, when going towards renewal the cycle starts over again and the high commitment management is in order.
The configurational perspective
Bundling: A more holistic view with bundles of strategies. It is concerned with the organization as a total system and addresses what needs to be done across the organization as a whole.
Critisism: no evidence that one bundle of strategies are better than another. It’s more difficult to focus on several strategies than just one at a time.
Inside-out vs Outside-in approach on HR-strategy
Inside-out: Configurational, the strategy is formed internally and not effected by external factors.
Outside-in: Contingency, the HR-strategy dervies directly from external challenges such as customers and competitors.
