Strategic Human Resource Management and Context - illustrations on pfeiffer's seven best practices in practice

17 important questions on Strategic Human Resource Management and Context - illustrations on pfeiffer's seven best practices in practice

What are Pfeffer's zeven best practices in practice?

1. Selective recruitment and selection - trying to recruit the best person for the job and organization.
2. Extensive training
3. Performance-related pay - linked to individual and team performance and yearly bonus.
4. Teamworking with autonomy and self-responsibility.
5. Information sharing and communication - including the importance of CEO's involvement with and commitment to major organizational changes.
6. Reduction of status differences
7. Employment security - in terms of employment benefits.

What are the strengths and weaknesses of the best-practice proposition of Pfeffer?

The strengths is in its clarity and simplicity. The weakness is in its lack of attention to contextual factors, including national differences, size of a firm, employee groups and nature of the business.

What is the best-fit proposition?

HRM's success depends on the organizational context and can only be successful with an appropriate fit.
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What is concidered as context? And what are the two types of external context?

A context represents the set of facts or circumstances that surrounds the organization, including internal and external context.

- Internal context represents the organization's unique history, the administrative heritage and organization culture.
- External context represent reflects the outside organisms that affect the organization or even interact with it, containing market mechanisms and institutional mechanisms.

What are institutional mechanisms and what are the three kinds?

Institutional mechanisms represent several pressures that set from legislation, protocols and procedures, routines, habits, norms and values and social-cultural issues. 3 kinds:
- coercive; coming from laws and procedures.
- Normative; coming from norms and values. E.g. Lawyers job, what should and should not be done.
- Mimetic; result of uncertainties and trends

What do hyper volaturism and hyper determinism mean in terms of institutional context?

Hyper volaturism means you have a lot of leeway in strategic making decisions in HRM. Hyper determinism means the opposite: you have no leeway.

How did Paauwe defined market meganism instead of the general market mechanism definition?

Market meganism includes the degree of competition between organizations in terms of products, services, technology and people.

Paauwe identified the PMT dimension; products, market and technology.

How does Paauwe call the institutional mechanisms?

  Paauwe calls it the SCL-dimension --> social, cultural and legal dimension.

Sectors of the external environment

  • The general environment: represents the bored external context of an organization
  • The business environment: represents the external context of an organization that is directly linked to the population or organizational field, for example the economy, customers, competitors, suppliers

In a Organisational field:

A community of organisations that partakes of a common meaning system and whose participants interact more frequently and fatefully with one another than with actors outside the field. (might be fluid, industry changes can influence each other)

A business strategy exists of 4 Darts

Competitive strategy: which market should we enter or what kind of new products should we make? So which market do you enter and how can you compete in these markets
Financial strategy: how can we fund this strategy?
Operational strategy: which supplies do we want to use?
HR strategy: how can we recruit people?

There are 4 kinds of fit in the field of SHRM

  • Strategic or vertical fit
  • Internal or horizontal fit
  • organization fit
  • environmental/institutional fit

There are 4 kinds of fit in the field of SHRM

  • Strategic or vertical fit
  • Internal or horizontal fit
  • organization fit
  • environmental/institutional fit




The fout linkages Golden and Ramanujam

  • An administrative linkage: represents the lowest level of integration. There is (almost) no link between HR strategy and the business strategy.
  • A one-way linkage: the HR strategy is derived from the overall business strategy, but the relationship is only one way. So, the business strategy only influences the HR strategy.
  • A two-way linkage: the HR strategy influences the overall business strategy and vice versa.
  • An integrative linkage: full alignment of HRM and strategy

Envorinmental --> Dimaggio & Powell, organizations are confronted with:

  • Market mechanisms: reflect the elements of competition between organizations operating in the same market.
  • Institutional mechanisms: mechanisms that stem from legislation, professional norms and limitation as a result of uncertainty or trends.

Envorinmental --> Dimaggio & Powell, organizations are confronted with:

  • Market mechanisms: reflect the elements of competition between organizations operating in the same market.
  • Institutional mechanisms: mechanisms that stem from legislation, professional norms and limitation as a result of uncertainty or trends.

Institutional mechanisms --> 3 types

1) Coercive mechanisms: implementation as a result of legislation/ institutional forces.
2) Normative mechanisms: depending on the professionalization of an employee and its norms and values.
3) Mimetic mechanisms: imitation as a result of uncertainty or fashion trends.

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