Decline in traditional industries with high
demands for manual labour, while service
and information processing industries
Emerging ‘knowledge' workers likely to
have confidence, knowledge and labour
market power to pursue their interests
Companies tailor individual incentives to
respond to this trend.
Associated with W. Edwards Demming.
Employee involvement in all quality
processes rather than quality inspection.
Requires a radically different approach to
Personnel specialists had suffered from a low
status relative to accountants and marketers,
because of its historic welfare and
Promoting the strategic significance of HRM
has given HR Managers the opportunity to
raise their status through developing HR
strategies which link with corporate
There are two broad approaches to linking HRM
One approach advocates ‘best practice' or
‘universalism' and argues that firms will be
better off if they adopt best practices in the way
they y organise work and manage people,
irrespective of the specific business strategy
used by the firm.
The other approach is variously known as the
‘best fit', ‘contingency', or ‘matching' school.
This approach argues that firms must adapt their
HR strategies to other elements of the firm's
business strategy and to its wider environment.
Best Practice/Universal Models
Walton (1985); Pfeffer (1998)
Best fit/Contingency/Matching Models (Closed)
Those which argue a key link to stages of an
organisation's development: Fombrun et al (1984);
Baird and Meshoulam (1988); Kochan and Barocci
Those which argue a key prescribed link to specific
organisational strategies: Schuler and Jackson (1987);
Miles and Snow (1984).
Best fit/Contingency/Matching Models (open)