“Critically Assess the View That Human Resource Management Practices Should Be Designed to Fit the Business Strategies and Objectives” 

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Question: “Critically assess the view that human resource management practices should be designed to fit the business strategies and objectives” 

Dynamism is increasingly becoming a feature of the business environment, so what can businesses do to attain and sustain a competitive advantage? They need to set out clear goals and objectives and then ensure that all internal processes and activities are designed in a manner to attain these goals and objectives. Furthermore, some of these practices should be linked directly to their strategies. One such is Human resource management. Results that aid in the enrichment of the organisation’s value to customers, investors and employees are derived from human resource management (HRM). David Ulrich advocates the definition of human resource management in this manner rather than by what it does. Nurse however defines it as the achievement of organisational objectives by fostering an environment of reciprocal commitment which encourages people to accomplish their tasks. Organisations are able to make human resource management a strategic asset when it is linked to the business strategies and objectives. These assets are “the set of difficult to trade, imitate, scarce, appropriable and specialised resources and capabilities that bestow the firm’s competitive advantage” according to Amit and Shoemaker (1993) cited by Becker and Gerhart (1996). Linking human resource management with organisational goals and objectives can allow the firm to maximise competitive levels, attain efficiency and effectiveness and ultimately allows them to achieve their goals and objectives. Theorists like Devanna, Wright and Guest among others have developed models to support this. The political, economic and cultural forces from an organisation’s external business environment impacts their mission and strategy according to the matching model accredited to Devanna et al (1984). The mission and strategy is supported by the organisational structure...
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