Human Resource Management in a Business Context Essay - 2

Human Resource Management in a Business Context - Essay Example claim strategic HRM as organizational systems that use people as a means to achieve sustainable competitive advantage (Snell et al., 1996). Nevertheless, almost all theorists agree on the fact that strategic HRM involves the achievement of a strategic fit between business strategy and HR strategy. For instance, rather than waiting for the employee to design and find his/her replacement, managers now proactively get involved in strategic planning to determine the staffing needs of organizations and conduct recruitment and selection accordingly. This has given way to the matching model whereby HR strategy flows out of the business strategy. The â€Å"fit† perspective has been widely acknowledged in HRM literature with the claim that the HR function needs to be aligned with other functions in the organization. Holistically, HR domains such as the recruitment, selection, training and development of employees are contingent on organizational goals. For instance, companies wishing to enhance their customer management would require corresponding HR practices that empower employees to ensure their satisfaction so that they may keep their customers satisfied. Furthermore, it is important to note that this â€Å"fit† may be internal or external. An external fit would require HR practices to be aligned with external environment (such as recession, outsourcing, downsizing, increased female participation), whereas, an internal fit would require the HR working in sync with other departments in the organization such as finance, IT, marketing etc. In the contemporary world, however, an â€Å"internal† fit is alm ost always assumed with HR of most organizations. It is the â€Å"external† fit that is gaining momentum owing to globalization and the volatile environment. Strategic HRM has evolved as a means of securing sustainable competitive advantage. This is in line with the theory of â€Å"rational choice† which claims that giving strategic