Human Resource Management

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Strategic Management of Human Resources

Section A: (Take around 15 minutes to answer each question, 1 or max 1.5 pages for each question)

1.What do we mean by the terms ‘Best fit’ and ‘Best practice’ to describe SHRM (Strategic Human Resource Management). Which is better? Use any short case examples to illustrate your discussion?

Answer:
By Definition
‘Strategic Human resource management is an approach that refers how the aims of the organization will be acquired through people by means of human resource strategies and combined human resource practices and policies. Strategic Human resource management is also based with viewing the people of the organization as a strategic element for the acquirement of competitive benefit’. (as defined by Huslid, 2003)

There are 2 approaches to SHRM
1)Best Fit
2)Best Practice

Discussing both the approaches here below

Best Fit Approach
The approach that takes into consideration the various circumstances that the organization is facing and thus keeps the focus creating a ‘best fit’ of HR strategies with these is called the BEST FIT APPROACH.These circumstances that the approach takes into account could be internal as well as external to the organization. The various HR strategies focuses on the many needs of the organization and the people working on the organization hence becomes the center to the approach. This approach is said to be vital and one of the best practices because it keeps into consideration the hard as well as the softer aspects that make up any organization. The focus is on learning what is a hit and what is not. It is then upto the company to decide of these learning what is important and applicable in the regular terms and what can be extracted and adopted in order to fit with the company’s requirements : strategic as well as operational. With a lot many positives attached to this particular approach a lot of HR practitioners have been found making this approach as the first choice. Having said this, there is also a major drawback to this approach, which is that there is a limitation of the search for contingency or a matching model of HRM. Additionally, there has always been difficulty in showing an interconnection between HRM and SHRM and understanding as to how a change in one variable shall impact the other.

Best Practice Approach
The other approach to SHRM is the BEST PRACTICE approach. It says that there are a set of HR practices that can be applied in almost any organizational context, this by keeping in mind the end business objectives and thus thereby ensuring an increase in performance and the delivered outcomes. The application of this approach will lead to better organizational performance. There is also a drawback of this model, that is it fails to create a connect with the current situation/ any specific challenges facing the organization. Saying this because these days, organizations have their own set of challenges – internal and external, and it is tough to create a specific solution for the organization.

2.How are Human Resource Departments responding to the challenges of SHRM?

Answer:
SHRM is said to be as one of the prime factors that help in achieving the objectives and there by boosting the performance of the business. However, achieving a proper SHRM has been one of the difficult tasks for the HR professionals in the organization. The HR faces a lot of challenges while becoming strategic actors and business partners. If an organization wants to develop and be successful it is important that the challenges of SHRM are identified and necessary steps are thus taken to address them.

One of the prime factors affecting SHRM is technological advancement. The chart below shows the issues of consideration of adopting a new technology.

Following set of actions are been taken by the HR departments to meet the...
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