Essay on Human Resource Management ( Hrm )

1836 Words Aug 31st, 2015 8 Pages
Human resource management (HRM) has evolved significantly as organisations found the ability to gain competitive advantage through human capital. As a result, strategic HRM aligned with the organisations goals and objectives has become a core function in organisations (Boxall and Purcell, 2003). Effective management of human capital can be a main determinant of organisational performance. An organisation can be deemed as successful when financial, market and shareholder performance is improved (Stavrou, Brewster & Charalambous, 2010). Decades of research demonstrated that there has been strong debate on how HR practices should be implemented in order for organisational performance to flourish. This has been based on two approaches of HRM: Best-fit and Best practice (Kinnie et al., 2005). This essay will analyse the “Best- fit” approach of HRM and how it contributes to organisational performance. The concept of the Best- fit argues that HRM will be more effective when it is specific to the context of a particular organisation (Boxall and Purcell, 2003). In the analysis, both benefits and criticisms of this contingency approach will be discussed along with comparisons to the Best practice approach. The continuing debate about which approach is better and directions for future research will also be explored.

The Best- Fit approach, also known as the contingency approach, has developed into a favourable theory, as organisations are able to link it with their…

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