Critically compare and contrast the ‘Best Fit’, ‘Best Practice’ and ‘Resource-Based View’, models of HRM strategy and explain how each approach is argued to contribute to improved organisational performance.

Business strategies touch every entity of the business including HR which is where many of the business necessities begin. The HR function needs to be involved in the strategic management process as “each component of the process involves people related business issues” (Noe et al., 2002, 59) which is the primary function of HR. “Once the strategy has been determined, HRM has a profound impact on the implementation of the plan by developing and aligning HRM practices that ensure that the company has motivated employees with the necessary skills” (Noe et al., 2002, 83).

Critically compare and contrast the ‘best fit’, BP and RBV models of HRM strategy – explain how EACH approach is argued to contribute to improve organizational performance.

Alignment between HRM practices and organizational strategy establishes a coherent system for organizations. There has to be a "fit" between the human resource planning and organizational strategy, Internal fit aligns HR practices with strategic organizational objectives while external fit aligns HR practices with the external environment. The external fit exhibits a more precise fit between quality policy and assertive performance HRM practices (Youndt,

In order to develop a human resource strategy; there must be a linkage of the entire human resource function with the firm’s business strategy in order to improve business strategy execution. The first recommendation

In simple term, strategic human resource management is concern with the ways in people is crucial to company effectiveness. According to Miller (1987) strategic

‘HR strategy, a ‘people plan’, that will help you ensure you have the right people in your business, at the right time with the right skills to ensure you achieve your business goals’.

The importance of HRM’s role is not debated and some key characteristics of its influence have been identified. The degree of ‘fit’ between HRM policies and the wider organisational strategy for knowledge sharing, integration and creation must be analysed. Placing emphasis on individual experience or on collective knowledge bases has dramatic implications for the kinds of selection, career development and reward policies that will be effective for the organisation. There are also longer-term effects from HRM policy which have an impact on the quality of trust and relationships through which knowledge is shared. Newell et al (2002) note that there is something that emerges in an organisation ‘bottom-up’ out of informal interaction, which

Wright and McMahan (1994) define strategic HRM as “the pattern of planned Human Resource deployments and activities intended to enable the organisation to achieve its goals.” A HR function should impact the success of an organisation; a policy must remain current and suitable to both the internal and external environment. Ulrich and Lake (1990) affirm, ‘HRM systems can be the source of organisational capabilities that allow organisations to learn and capitalise on new opportunities.’

Good human resource strategies are difficult to achieve, hard to sustain, and expensive. The objective of a human resource strategy is to manage labor and design jobs so people are effectively and efficiently utilized.

The practise of Human Resources is moving from the traditional forms of managing people to a more strategic form whereby the Human Resources function is closely linked with organisational performance and success. This strategic form of human resources has increased the need for the Human Resource professional to understand the linkages between Corporate Strategy, Human Resource Strategy and Employee Integration.

The term Human Resource Strategy is well defined as - “Human Resource management (HRM) is a strategic approach to managing employment relations which emphasises that leverage people 's capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices.” [ Bratton and Gold,4e,p3]

The "best-fit" approach questions the universality assumption of the best-practice perspective. It emphasizes contingency fit between HR activities and the organization's stage of development, an organization's internal structures and its external environment like clients, suppliers, competition and labour markets (Redman and Wilkinson 2009). HR policy should be minted by the appropriate context of individual employees and therefore support the overall competitive strategy. Aligning HRM practices to strategies can enable companies to create potential competitive advantages (Schuler and Jackson 1987 in Redman and Wilkinson 2009).

More firms’ business strategy can be better realized using the integrative model of HRM. Both employees and firms’ aspirations can be met if the right strategy is used. . HR professionals must be well trained to implement this strategy.

The strategic human resources management of the means every person from within organization from the top of management level to the bottom of ground staffs are doing things that make the organization successful. According to Schuler, R. S. (1992) strategic human resources management is defined about integration and adaption within organization .Its concern to ensure HR management is fully integrated with the strategy and these HR policies are adjusted and used by the employees and their line managers as part of their everyday work.

Within this essay an in depth analysis will be conducted on the difference between Human Resource Management and Strategic Human Resource Management using contemporary perspectives. Human Resource Management (HRM) is the process of managing human resources in a systematic way. It is a practice devised to maximise the performance of employees and is concerned with the application of management principles to manage organisational personnel while paying attention to the policies and systems of the entity (Delaney & Huselid, 1996). Strategic Human Resource Management (SHRM) is a function of management which entails development of policies, programmes and practices related to human resources, which are aligned with business strategy so as to achieve the strategic objectives of the organisation (Patrick M. Wright, 1992). Its primary purpose is to improve the performance of the business and maintain a culture that encourages innovation and works continuously to gain competitive advantage. In this essay the Resource-Based View, High Performance Management and High Commitment Management perspectives of Strategic Human Resource Management and Traditional and Collaborative