managing two fits of strategichuman resources management

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    Managing Two Fits of Strategic

    Human Resources Management

    Hazmin, Gulam & Handoko, Muhammad

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    External Fits & Internal Fits

    A concept of combination between

    The stages of developmental organization

    and

    The components of human resourcesmanagement

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    External Fits

    A circumstance where human resources management

    fits the developmental stages of organization.

    Four kinds of models used :

    + Life Cycle and Hierarchical model

    + Evolutionary model

    + Stage model

    + Metamorphosis model

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    Life Cycle and Hierarchical Model

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    Evolutionary Model

    Slow Pace = Need to increase the performance

    Fast Pace = Need to encourage the slower division performance

    Medium Pace = Need to balance the performance

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    Stage Model

    Goal

    Condition

    1stStage

    Goal

    Condition

    2ndStage

    Goal

    Condition

    3rd

    Stage

    Every action on transition should REQUIRE the permission of

    management, adjusting the environment, or meet the goal

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    Metamorphosis Model

    Goal

    Condition

    1stStage

    Goal

    Condition

    2ndStage

    Goal

    Condition

    3rd

    Stage

    Metamorphosis says :

    Transition and Change triggered by THREAT

    One thing that stages model could not answer is How.

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    Stages of Human Resources Management

    Stage I Initiation

    Stage 2 Functional Growth

    Stage 3 Controlled Growth

    Stage 4 Functional Integration

    Stage 5 Strategic Integration

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    Initiation

    Stage 1

    Set Up Starting

    Basic Administration

    Basic Recruiting

    Salary and Compensation

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    Functional Growth

    Stage 2

    Technical Specialization

    Dynamic Growth

    Expanded Product

    Expanded Market

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    Controlled Growth

    Stage 3

    Professional Management

    Scarce Resources

    New Acquisitions

    Diversified Market Lines

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    Functional Integration

    Stage 4

    Diversification

    Product Groups or Divisions

    Project Management

    Function Integration

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    Strategic Integration

    Stage 5 Team Action

    Full Integration of Functionalareas

    Strategic Management

    Ability to adjust environment

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    Internal Fits

    A circumstance where structure, technology, human

    resources and so on and so far are well-organized and

    supporting each other.

    If external fits requires human resource to fit the

    developmental stages, Internal fits requires the

    COMPONENT to fit and support the other component.

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    The Six Strategic Components of HRM

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    The Balance Condition (Matrix)

    A circumstance where external fits and internal fits

    collide

    Characterized by :

    + Maximum Profit

    + Maximum Performance+ Maximum Interaction

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    Implication

    How Human Resources should be managed ? Should be managed to FIT the business need

    How Human Resources responds to

    business/organizational needs ?

    Decide the stage where business/organization

    stands

    How should Human Resources function be organized

    ?

    Employee relations, training and development,

    integrative activities, compensation program.