Critically analyze the three approaches to strategic HRM
Solved by verified expertResource-Based View (RBV) Approach:
The RBV approach is based on the idea that human resources are a valuable and strategic resource that can give an organization a competitive advantage. This approach emphasizes the importance of developing and deploying human resources effectively to create value for the organization. The strengths of this approach include its focus on the strategic importance of human resources, its emphasis on developing human resources as a source of competitive advantage, and its recognition of the importance of aligning HR practices with the overall business strategy. However, the RBV approach may be criticized for its narrow focus on the internal resources of the organization, which may overlook important external fa
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Contingency Approach:
The Contingency approach suggests that HR strategies and practices should be contingent on specific organizational and external factors such as the size of the organization, industry, and competitive environment. This approach emphasizes the importance of flexibility and customization of HR practices to suit the specific needs of an organization. The strengths of this approach include its recognition of the need for flexibility and customization, and its emphasis on aligning HR practices with specific organizational and environmental factors. However, the contingency approach may be criticized for its complexity and the difficulty of determining which factors are relevant to specific HR practices.
Best Practice Approach:
The Best Practice approach suggests that there are certain HR practices that are universally effective and can be applied to any organization to improve its performance. This approach emphasizes the importance of adopting standardized HR practices that have been proven to be effective in other organizations. The strengths of this approach include its focus on identifying and applying effective HR practices, its potential to improve HR practices quickly and efficiently, and its ease of implementation. However, the best practice approach may be criticized for its lack of customization and flexibility, which may result in the adoption of HR practices that do not fit the specific needs of an organization.
In conclusion, each approach to SHRM has its strengths and weaknesses, and the choice of approach depends on the specific needs and characteristics of the organization. The Resource-Based View approach emphasizes the strategic importance of human resources and their potential to create a competitive advantage. The Contingency approach recognizes the need for flexibility and customization of HR practices to suit the specific needs of an organization. The Best Practice approach emphasizes the importance of adopting standardized HR practices that have been proven to be effective in other organizations.
