Theme 2 The contingency perspective Flashcards
What is the best practice approach?
This approach suggests that certain HR policies and practices are always effective.
-> If you implement an HR practice there will always be a desired result
What is the contingency approach/best fit approach?
HRM practices and policies should be aligned with various aspects of the organization and the context in which they are implemented.
- internal and external environment shape the design of HRM strategy and policies
- organizational performance is achieved through the alignment or fit between the internal and external organizational factors and the implemented HRM policies and practices
What are the four forms of SHRM fit?
Internal fit, strategic fit, organizational fit, and environmental fit
What is the internal fit according to contingency theory?
The alignment between individual HR practices with the aim of producing a coherent and consistent HRM system.
e.g., when there is a high internal fit (powerful connections between individual HR practices), these practices strengthen each other, leading to enhanced performance.
What is the strategic fit according to contingency theory?
The alignment between a set of HR practices and the firm’s business strategy (the organizational goals).
e.g., a cost reduction strategy calls for HR practices such as minimal levels of training/development, while an innovation strategy calls for HR practices such as providing training
What is the organizational fit according to contingency theory?
The alignment between HR practices and other organizational characteristics, such as the organizational structure, culture, technological systems and work processes.
e.g., a HPWS may have a stronger effect on performance in manufacturing than in service organizations because of the greater complexity of manufacturing jobs.
What is the environmental fit according to contingency theory?
Relates to the integration of HR practices within the external environment of the organization. Ensuring that HR policies and practices are aligned with relevant legislation and regulations and cultural norms/traditions.