Lecture 23-11-2018
There are certain reasons why you differentiate between employees.
The best practice approach is related to universalistic approach and one-
way, while the best-fit approach is related to contingency perspective and
dependency.
If you do differentiate it benefits you as a company since you focus on
employees that are most valuable to you as a company.
• types of labour contract (permanent or temporary)
• investment in training and development
• compensation system
When would you differentiate?
1. Fluctuations in economic cycles
2. It may be beneficial (more effective) to invest more in ‘important’ (a
small proportion) employees that really make the difference than
others. Also from Schmidt et al. article!
HR architecture model
This model differentiates
employees based on
1. the uniqueness of the
employee (human capital)
(specificity of the
employee’s KSA)
2. the added value of human
capital (enacting strategies
of the organization)
This leads to four different
types of employment modes:
1. Internal development
2. Acquisition
3. Contracting
4. Alliance
Lepak and Snell 1999.
1: high on uniqueness and added value. They are very important! And
should therefore be kept. —> core knowledge employees.. You develop
them yourself as an organization.
HR configuration: commitment: extensive training, career
development and participation (HPWS)
2. Those don’t have that unique human capital. They are still internal in
the organization and do matter for the strategy —> compulsory
knowledge employees. Their human capital is not really unique. You can
easily buy them on the market. You do not to create or develop them
yourself, but hire them externally yourself (also called market-based). But
you want them in your company because they are important for the
strategy of your organization. e.g. IT support. HR configuration: market
based: staffing (Recruitment, selection, on-barding).
There are certain reasons why you differentiate between employees.
The best practice approach is related to universalistic approach and one-
way, while the best-fit approach is related to contingency perspective and
dependency.
If you do differentiate it benefits you as a company since you focus on
employees that are most valuable to you as a company.
• types of labour contract (permanent or temporary)
• investment in training and development
• compensation system
When would you differentiate?
1. Fluctuations in economic cycles
2. It may be beneficial (more effective) to invest more in ‘important’ (a
small proportion) employees that really make the difference than
others. Also from Schmidt et al. article!
HR architecture model
This model differentiates
employees based on
1. the uniqueness of the
employee (human capital)
(specificity of the
employee’s KSA)
2. the added value of human
capital (enacting strategies
of the organization)
This leads to four different
types of employment modes:
1. Internal development
2. Acquisition
3. Contracting
4. Alliance
Lepak and Snell 1999.
1: high on uniqueness and added value. They are very important! And
should therefore be kept. —> core knowledge employees.. You develop
them yourself as an organization.
HR configuration: commitment: extensive training, career
development and participation (HPWS)
2. Those don’t have that unique human capital. They are still internal in
the organization and do matter for the strategy —> compulsory
knowledge employees. Their human capital is not really unique. You can
easily buy them on the market. You do not to create or develop them
yourself, but hire them externally yourself (also called market-based). But
you want them in your company because they are important for the
strategy of your organization. e.g. IT support. HR configuration: market
based: staffing (Recruitment, selection, on-barding).
