STRATEGIC HUMAN RESOURCE MANAGEMENT IS LARGELY ABOUT

INTEGRATION OR STRATEGIC FIT BETWEEN HR STRATEGY AND

BUSINESS STRATEGY.DO YOU AGREE? DIFFERENTIATE BETWEEN
EXTERNAL FIT AND INTERNAL FIT. GIVE EXAMPLES OF
ORGANIZATIONS YOU KNOW OF THAT HAVE ACHIEVED A FIT
BETWEEN BUSINESS STRATEGY AND HR STRATEGY.DESCRIBE AND
EVALUATE THE TYPE OF FIT THAT EXISTS INEACH OF THESE
ORGANIZATION.

NIRAJ KUMAR
06-Sep-19
The strategy fit between a firm's business and HRM strategy has a positive and direct
impact on HRM effectiveness and labor productivity after analyzing by hierarchical
multiple regression. HRM effectiveness could directly increase labor productivity
while strategy fit strengthened the relationship between HRM effectiveness and
labor

productivity. the alignment between the business and HRM strategy was the key
factor of success for organizations. When the HRM strategy and business strategy
were aligned, the effectiveness of HR practices and organizational performance were
better than “that of not aligned” by contingency perspective. the practical
significance through calculating the impact of HRM effectiveness and strategy fit on
labor productivity by each standard deviation increase, respectively.
Originality/value confirmed that a firm's competitive advantage can be enhanced by
HRM practices and strategy fit. Strategy fit could also moderate the relationship
between HRM effectiveness and labor productivity. External fit is the alignment

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between the organization and its environment. When the strategies of the
organization are aligned to the HR systems of the organization to be in sync the
external environment it is called external fit. When the performance of the
organization is positively affected by the alignment between the organizational
contingencies and the environmental contingencies it is said that fit exists. Fit can
be of two types internal fit and external fit.

External fit is essential to improve the performance of the firm. It has been found
that firms which have better external fit between strategy and HR systems have better
performance than firms which have a less external fit. Thus, HR systems facilitating
the execution of the strategy of the firm results in higher performance. So, having
external fit is a competitive advantage for the firm.

Internal fit is when the organizational systems, structure and technology are aligned
with the Human Resource systems of the organization. In internal fit all the internal
elements of the organization complement and reinforce each other. When the
performance of the organization is positively affected by the alignment between the
organizational contingencies and the environmental contingencies it is said that fit
exists. The performance of the organization increases with better balance between
the organizational and human resource systems. The five main internal
organizational components between which there should be a fit are task, structure,
decision making and information processes, rewards and recognition system and
people. A misfit between these components results in wastage of money, time and
energy.

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For example, if an advanced system is developed by an organization to improve the
efficiency of its operations but if there are no people who are skilled enough to use
the advanced system then the system remains unimplemented resulting in the loss of
money. Hence an internal fit result in competitive advantage for an organization.

Google has been synonymous with culture for years, and sets the tone for many of
the perks and benefits startups are now known for. Free meals, employee trips and
parties, financial bonuses, open presentations by high-level executives, gyms, a dog-
friendly environment and so on. Googlers are known to be driven, talented and
among the best of the best.

As Google has grown and the organization has expanded and spread out, keeping a
uniform culture has proven difficult between headquarters and satellite offices, as
well as among the different departments within the company. The larger a company
becomes, the more that culture has to reinvent itself to accommodate more
employees and the need for management.

While Google still gets stellar reviews for pay, perks and advancement, there are
also some employees who note growing pains that you’d expect from such a huge
company, including the stress associated with a competitive environment. Hiring
and expecting the best from employees can easily become a stressor if your culture
doesn’t allow for good work-life balance.

Takeaway: Even the best culture needs to revisit itself to meet a growing company’s
team. The most successful company culture leads to successful business, and that
requires an evolving culture that can grow with it.

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Conclusion

Many of the companies offer similar perks and benefits, but those do not determine
the culture completely. The approach taken with how employees are treated and
what level of ownership and trust they are given is also a key part of company
culture.

One word of caution: focusing on company culture to the exclusion of other

workforce considerations (safety, laws, regulations) can lead to abuses or create
situations where employees aren’t comfortable. Even the best examples of culture
on this list have detractors.

Remember that the best culture makes all employees feel safe and welcome, never
excluded or uncomfortable. Focusing on “culture fit” alone makes it difficult to hire
and welcome employees who are different than the prevailing culture, even if they’d
be an asset and great counterbalance at your company. Your company culture needs
adjustment if it causes you to end up with a homogenized team who think and act
the same.

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REFERENCES

1. https://www.entrepreneur.com/article/249174
2. https://www.mbaskool.com › Concepts › Human Resources (HR)
3. https://www.researchgate.net
4. www.emeraldinsight.com
5. www.google.com