Week 2
Lecture Contextual SHRM framework
Outside in/inside out thinking: external context and internal context organization influence each other.
'Best practices (universalistic: one size fits all)’<==> ‘Best fit (contingent: if … then)’
Universalistic approach (Pfeffer) best practices: selective recruitment and selection, extensive
training, performance related pay (PRP), teamwork, communication, reduction of status
differences, job security
Contingent approach: context is important. We distinguish:
Internal context (configuration): history, administrative heritage, culture
External context: market mechanisms, institutional mechanisms
How to reconcile:
- Best practices principles <==> underpinning layer (universalistic). It will always pay off to select
carefully in order to get the best people.
- Best fit practices principles <==> surface layer (HRM influenced by context). However, the
specific way you do this might differ per function, per job category/organization/country.
Contextually based human resource theory
4 types of HR Fit:
- Strategic fit (vertical) - HR strategies and business strategy
- Internal fit (horizontal) - HR practices (deadly combinations)
- Environmental fit – HR strategies and environment, eg legislation, norms/values, work councils
- Organizational fit – HR systems and other systems and the configuration
, Contextual strategic HRM model
High performance/high involvement work systems
- Challenging targets/costumer-oriented units
- Decentralization/delegation of decision making
- Work by semi-autonomous task groups/teamwork
- Performance management linked to financial performance indicators
- Business process reengineering -> costumer focus
- Benchmarking performance -> shareholder value
- Creating and stimulating learning and development at all organizational levels
- Information and communication: from top down to flowing in all directions
High performance organizations
- Create a value proposition that defines the workplace
- Hire people who fit the values, core competences and strategic goals
- Continuously train employees to do their jobs and offer them opportunities to grow and develop
- Design work that is meaningful and provides feedback, responsibility and autonomy
- Have a mission, strategy, goals, values that employees understand, support and believe in
- Hire and develop leaders who create commitment, trust and a motivating work environment
Lecture Contextual SHRM framework
Outside in/inside out thinking: external context and internal context organization influence each other.
'Best practices (universalistic: one size fits all)’<==> ‘Best fit (contingent: if … then)’
Universalistic approach (Pfeffer) best practices: selective recruitment and selection, extensive
training, performance related pay (PRP), teamwork, communication, reduction of status
differences, job security
Contingent approach: context is important. We distinguish:
Internal context (configuration): history, administrative heritage, culture
External context: market mechanisms, institutional mechanisms
How to reconcile:
- Best practices principles <==> underpinning layer (universalistic). It will always pay off to select
carefully in order to get the best people.
- Best fit practices principles <==> surface layer (HRM influenced by context). However, the
specific way you do this might differ per function, per job category/organization/country.
Contextually based human resource theory
4 types of HR Fit:
- Strategic fit (vertical) - HR strategies and business strategy
- Internal fit (horizontal) - HR practices (deadly combinations)
- Environmental fit – HR strategies and environment, eg legislation, norms/values, work councils
- Organizational fit – HR systems and other systems and the configuration
, Contextual strategic HRM model
High performance/high involvement work systems
- Challenging targets/costumer-oriented units
- Decentralization/delegation of decision making
- Work by semi-autonomous task groups/teamwork
- Performance management linked to financial performance indicators
- Business process reengineering -> costumer focus
- Benchmarking performance -> shareholder value
- Creating and stimulating learning and development at all organizational levels
- Information and communication: from top down to flowing in all directions
High performance organizations
- Create a value proposition that defines the workplace
- Hire people who fit the values, core competences and strategic goals
- Continuously train employees to do their jobs and offer them opportunities to grow and develop
- Design work that is meaningful and provides feedback, responsibility and autonomy
- Have a mission, strategy, goals, values that employees understand, support and believe in
- Hire and develop leaders who create commitment, trust and a motivating work environment
