THE CONCEPTS OF FIT AND FLEXIBILITY IN THE STRATEGIC HUMAN RESOURCE MANAGEMENT IN ORDER TO ATTAIN SUSTAINABLE COMPETITIVE ADVANTAGE

Tosheva, Elizabeta (2013) THE CONCEPTS OF FIT AND FLEXIBILITY IN THE STRATEGIC HUMAN RESOURCE MANAGEMENT IN ORDER TO ATTAIN SUSTAINABLE COMPETITIVE ADVANTAGE. UNIVERSITY OF BELGRADE, TECHNICAL FACULTY IN BOR, Belgrade, Serbia. ISBN 978-86-6305-006-8

Full text not available from this repository.
Official URL: http://www.menadzment.tf.bor.ac.rs/downloads/mksm2...

Abstract

The purpose of this paper is to point out of the ways in which the strategic human resource management (SHRM) can create a sustainable competitive advantage if it achieves two essential goals: organizational flexibility (both resource and coordination flexibility) and fit (both external and internal). In order to do so, we present a framework that provides a theoretical foundation for understanding the strategic role of human resources in organizations through both: fitting important aspects of the HR system to the strategic needs of the firm and building these components to enable flexible response to a variety of strategic requirements. First, the paper will examine the concepts of fit and flexibility and their relationship with one another. An important aspect of the strategic HRM is the concept of fit or integration. Strategic HRM is an asset for linking HRM with strategic business content. HR strategy should be linked to the business strategy (vertical integration), mainly because of their mutual replenishment and support in the definition, in order to serve as a basis in the business planning process. Horizontal integration (linking various HR strategies in a unit) aims to achieve a coherent approach in managing people, where different practices are mutually supportive. Researchers in the area of strategic HRM emphasize that in the current complex and dynamic environment, organizations require flexibility to adapt to the diverse and changing requirements. At a first sight, it may seem that the desire for strategic fit and the need for organizational flexibility are in the conflict. Indeed, although the relationship between fit and flexibility in the context of the strategic HRM is not well understood, there is little understanding as to the definition and value of each of them. Based on this work, we propose a model of strategic HRM, which includes both fit and flexibility components. These assumptions about the model suggest difficulty for its achievement, which actually represents the only way in which firms can achieve competitive advantage. Considering that sustainable competitive advantage results from resources and capabilities that are considered valuable, rare, irreplaceable and difficult to imitate, thus achieving fit is difficult due changes in environment. Especially for firms that operating in unstable competitive environments, developing ability for flexibly achieving fit with constantly changing strategic needs represents a huge strategic asset. Strategic HRM should simultaneously promote fit and flexibility and should represent a constant demand of the ways in which the unique firm's resources should be used at the right time to respond to the changing environment. The achievement of these goals at the same time allows the origination of a dynamic fit, able to create a firm that renews itself, and at the same time, it gives to firm fast response ability to environmental requests. Keywords: strategic HRM, organizational flexibility, external fit, internal fit, sustainable competitive advantage

Item Type: Book
Subjects: Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions: Faculty of Law
Depositing User: Mr Mladen Kradzoski
Date Deposited: 26 Mar 2019 17:49
Last Modified: 26 Mar 2019 17:49
URI: http://eprints.uklo.edu.mk/id/eprint/1552

Actions (login required)

View Item View Item