Strategic Human Resource Management and Context - the SHRM context model; the strategic scan

14 important questions on Strategic Human Resource Management and Context - the SHRM context model; the strategic scan

What is the aim of the HR strategy scan and what are its six components and four allignments?

Its aim is to check the fit between HRM and the organizational context, using six components:

1. The external general market context
2. The external population market context
3. The external general institutional context
4. The external population institutional context
5. The internal organization environment (configuration)
6. The HR strategy and practices

Within the model there are four alligments:
1. Connection between market context (general and population) and HR strategy & practices
2. Connection between institutional market (general and population) and HR strategy & practices
3. Connection between the configuration and HR practices and strategy
4. Connection between HR practices

What is the difference between the external general market context and external population market context within the 6-component model?

The external general market context contains the macro economic trends that affect the company within a country. E.g. Labour market.

The external population market context contains the economic trends within a sector, e.g. Competitors, technology.

What is the difference between the external general institutional context and the external population institutional context within the 6-component model?

The external general institutional context contains the institutional mechanisms that influence all companies within a country.

The external population institutional context contains the institutional mechanisms that only influence the company. E.g. From trade unions or Green Peace if you're Shell.
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Harvard approach model

A collective labour agreement (CLA) or collective bargaining agreement (CBA)

What is the configuration context within the 6-component model?

This is the internal organizational environment and consists of technology, workforce, culture and strategy and history.

What are the HR practices within the HR strategy & Practice context in the 6 component model?

Selection and recruitment
Compensation
Appraisal and Performance Management
Training and development
Participation


The HR.-strategy scan (six-component model)

  1. The Human Resource Strategy and Practices:
  2. Configuration and organizational fit
  3. The external general market context and startegic fit
  4. The external population market context and strategic fit
  5. The external general institutional context and environmental or institutional fit
  6. The external population institutional context and environmental or institutional fit

What are the three underlying assumptions of the HR strategy scan?

- The four external components and configuration affect the HR strategy
- The external general market environment influences the external population market environment
- The external general institutional environment influences the external population institutional environment.

Exteral general market context and strategic fit

the market mechanisms that affect all the organizations in a specific country or region. --> Macro economic situation and labour market situation

Which four alignments can occur from the 6 component model?

1. Organizational fit; fit between configuration and HR strategy

2. Internal fit; fit between the five HR practices

3. Strategic fit; fit between external market context and HR strategy.

4. Institutional fit; fit between external institutional context and HR strategy.

What is the value of the six component model?

The six component model is an instrument to analyse the context and evaluate the fit of the current HR strategy. Besides, it determines the needs to develop a new strategy.

External general institutional context and environmental

The institutional mechanisms that influence the organisations in a country. We look at the legislation, the culture of a country and the norms and values.

What are the three additional fits?

1. Consistency fit - among employees vs single employee consistency
2. Temporal consistency fit - extent to which HR practices are stable over time
3. Adaptation fit; the extent in which the organization is capable to change its HR practices to change in the internal and external context.

External population institutional context and environmental

specific institutional mechnanisms linked to their population. This only affects your sector.
O The influence of unions and branch specific stakeholders. (example; Greenpeace)

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