Human resource management practice I also available by michael armstrong

Part 

1

  The Practice of Human Resource Management

22

Critical evaluation of the resource-

based view

The  resource-based  view  has  had  considerable  

influence on thinking about human resource man-

agement.  It  provides  a  justification  for  attaching  

importance to resourcing activities, especially those 

concerned with talent management. It can also be 

used to enhance the value of the HR contribution  

in achieving competitive advantage. But it has the  

following limitations:

 

●

it may be difficult to find resources that 

satisfy all the criteria;

 

●

external factors such as product market 

pressures are ignored;

 

●

it provides only generalized guidance on 

what resources are suitable;

 

●

different resource configurations can provide 

the same value for firms;

 

●

as Priem and Butler (2001) pointed out, the 

theory is tautological because valuable 

resources and competitive advantage are 

defined in the same terms.

Strategic fit

The concept of strategic fit stresses that when devel-

oping  HR  strategies  it  is  necessary  to  achieve  

congruence  between  them  and  the  organization’s 

business strategies within the context of its external 

and  internal  environment.  This  notion  is  funda-

mental  to  SHRM,  as  was  stressed  by Wright  and 

Snell (1998: 758) who wrote: ‘The primary role of 

strategic HRM should be to promote a fit with the  

demands of the competitive environment.’ In more 

detail, Schuler (1992: 18) stated that:

Strategic human resource management is largely 

about integration and adaptation. Its concern 

is to ensure that: (1) human resources (HR) 

management is fully integrated with the strategy 

and strategic needs of the firm (vertical fit); (2) HR 

policies cohere both across policy areas and across 

hierarchies (horizontal fit); and (3) HR practices 

are adjusted, accepted and used by line managers 

and employees as part of their everyday work.