Introduction
The 'best practice' approach asserts that specific 'best' human resource practices will improve organizational performance, as evidenced by improved employee attitudes, fewer absenteeism and turnover, greater levels of skills for increased productivity, and improved quality and efficiency.
As a result, the "best practice" paradigm is also known as the "high commitment" model. Two well-known human resource management concepts are 'best fit' and 'best practice.'
When HR strategy is linked to the business environment, it becomes better and more efficient, according to the 'best fit' approach. It investigates the close link between strategic management and human resource management by determining how vertically integrated an organization's business strategy and HRM policies and practices are.
Strategic Fit
The strategic fit idea is based on the integrated approach taken by the pioneers of strategic management, Kndler (1962) and Esnof (1965), and is based on the degree of correlation or coherence between conflicting agendas, the distribution system, and infrastructure performance.
This concept reflects an open systems approach in which the organization is viewed as a collection of interacting components, one of which is larger than the organization's interaction with the environment.
Its theoretical framework is based on the belief that the fit between strategy and the proportion of organizational and environmental compatibility improves business performance.
The essential premise of a constant in all definitions and conceptualizations of (fitness) or peers is that when organizations achieve compliance, they will run effectively and efficiently (in comparison to when they do not) (Farahi, 2006). Companies might even earn financially by aligning their strategies and investing in human resource policies and practices. (2004, human resources)
Importance of Strategic Integration
As a result, strategic integration is required to ensure that strategy and human resource strategy are in sync. Because these two approaches are mutually beneficial. (Arabi and izadi, 2002)
The need to build a thorough link between these two strategies has led to a critical component in the selection of human resources strategies, the organization's overall strategy (Mirsepasi, 2001).
If only such a proportion could be set to a formal guidelines procedure (Friday and Friday, 2002) to guide all the programmes (at various levels) that have been achieved.
Historical Context and Evolution
Although not much time has elapsed since the idea, the applicability of the firms has always been obvious.
In the 1980s, Japanese corporations achieved great success, for example, through an employee management system based on a favourable business climate.
However, as a result of the intense worldwide rivalry in the 1990s, they changed their human resource management processes and circuit performance.
The amount of external (foreign) on how to build consistency (relevance) between human resources management procedures and the organization's overall strategy is associated more closely to a vertical connection.
Vertical and Horizontal Connections
The proportion of internal coordination between the components and activities of human resource management is equivalent to the horizontal connections, indicating that.
Way and Johnson (2005) are two authors that have written about this topic. Low levels of fitness, it is undeniable, have a negative impact on organizational effectiveness.
Although there will be differences in the link between strategic human resource management and firm performance based on our attitude toward collaboration, particularly between the universal school of attitude and the School's coordination (Chang and Huang, 2005).
But how much of this will be put into research to find out why and how the proportions and external consistency are as they are?
External Consistency in Strategic Fit
External consistency refers to the alignment of human resources strategies with business plans, as well as the organizational dynamics and features of the linked development stage corporation.
The link between human resource strategies and coordination strategies is described; it can be "vertical seamless integration" clergy, but establishing this sort of coordination poses obstacles that may be analysed from four perspectives:
1. Compatibility with Corporate Strategies
Human resource strategies must be aligned with corporate objectives.
To achieve this, the field of human resource management techniques, as well as decision-making activities and analysing the market position of the product match, must be integrated.
Coordination and agreement between corporate strategies can refer to balancing strategies, human resources, and the target organization's strategic orientation.
2. Compliant with the Wheel of Life
Adapting development stage company involves balancing strategies, corporate strategy, and human resources company, so it is suitable that the organization's strategy, at every stage of the firm's life cycle, maturity, decline, or dissolution, is likely to deform.
There are distinctions in this regard among the activities that are beginning to materialise now that the situation is changing.
3. Organizational Transformation Dynamics
Organizational transformation dynamics will have a significant impact on human resource strategy.
Managing the transition from the existing to the future state, which entails the creation of change plans and, in some cases, a new strategic approach to the employment relationship.
4. Alternate Technique for Assessing HR Strategy
An alternate technique of assessing the demands of human resource strategies and tying them to an overview of the organization is to use an organizational profile.
In this case, the optimal kind of classification is as follows:
- Defenders – a group that aims to maintain the organization's stability and is thought to be accurate.
- Opportunists – seeking new chances, professional advancement, and continuous education rely on and trust in flexibility.
- Analysts – who aim to benefit from "opportunists" and "The Defenders" (Arabi and izadi, 2002).
Issues with Achieving Strategic Fit
Although strategic coordination between human resource strategy and overall company strategy is ideal for all firms, it is difficult to achieve for the following reasons:
- Strategic planning strategies vary – They come in a range of procedures, levels, and styles, making it difficult to develop a clear vision for HR strategies consistent with company aims.
- Complexity of strategic planning – It is heavily influenced by environmental and historical circumstances, making consistent HR strategy models difficult to implement.
- Nature of strategy development – Human resource strategies must be updated regularly; otherwise, lack of flexibility leads to chaos.
- Inadequate or unclear strategies – Lack of clearly defined strategies adds confusion and inconsistency.
- Qualitative dimension of HR concerns – HR strategies involve both quantitative (e.g., resource allocation) and qualitative (e.g., motivation, awareness) elements.
- Integration challenges – HR strategies may be under pressure when trying to align with overall company strategies (Arabi and Izadi, 2002).
Approaches to Resolving Strategic Fit Issues
It will be tough for the custodian of human resource strategy to solve these difficulties. However, efforts in this direction are required, and we employed the following strategies to accomplish this:
1. Understand How Business Strategies Are Formed
The person in charge of human resources strategy must work closely with higher levels of management in the development of business strategies in order to be able to participate in the development of business strategies and obtain the necessary information.
2. Invite Stakeholders to Participate
Including senior managers, line managers, employees, and other stakeholders, and to examine their perspectives on human resources strategies in comparison to other techniques to achieve harmony and alignment with the goals.
This cooperation creates a positive cycle through aligning human resource strategy. Participation of stakeholders in integration and alignment strategies aids in strategy alignment and commitment to establish their results.
3. Understanding Significant Business Concerns
Developing awareness of business knowledge and organizational challenges is one of the most critical needs for human resource strategies.
Examples include:
- Rapidly moving into new markets
- Engineering quality
- Increasing cash flow
- Diversification
- Product development and marketing
- Cost reduction
- Building a performance-oriented culture
- Reducing production time
- Organizing around customer needs
4. Using Mechanisms for Establishing Harmony
Developing a relationship between strategic alignment and the creation of mechanisms based on organizational capabilities can be utilized strategies.
If human resource managers analyze the organization's business and extract the required capabilities, HR processes can then be developed to build and implement strategies that enhance those capabilities (Shirazi, 2012).
Key Questions to Consider
- What are the most pressing concerns in our industry?
- What are the organizational capabilities required to meet business objectives?
- What human resource techniques should be employed to develop, maintain, and enhance these capabilities?
Before assessing the business environment, we need to know the answers to these questions.
While existing strategies may be re-examined, they may contain flaws due to changing business conditions.
Conclusion
A good awareness of the company's internal and external environment, consumers and stakeholders, investors, and other items is a sensible beginning point.
As a result, the organization's challenges, problems, and most critical objectives are derived. Continue with the analysis capabilities required to assess issues and strategies, human resources extracted, and human resources the ability to reaffirm the plan according to various procedures.
