Discuss Strategic fit, strategies that improve all the behaviors where all the bundles in HR system
are complementary to the key business functions.
Strategic fit indicates the degree that organizations pick their matching resources together with
their capabilities in light of the existing opportunities. Human resource strategies assist in
matching the resources, capabilities and the available opportunities. The success of human
resource planning is largely determined by the company’s resource based performance of human
capital whose development must be directly consistent with the company’s objective and which
is referred to as the internal fit while the flexibility of the different human capital resource
activities that assist in organization to respond more to external environment and its referred to
as external fit (Ali, Ahmad and Igbal, 2012).
Line management feature emphasizes the need for efficient HRM system that is systematic and
directly related to the policies of the company and which also provide inimitability (Huselid,
1995). The objective of HR in line management must be consistent both internally and externally
with the works system (MacDuffie, 1995).
Internal fit improves as alternative elements of HRM reinforce each other by sending signals on
different behaviors that exists in the organization (Pfeffer, 1994). Poor internal fit examples
include job structures that are basically based on teams while the incentive systems, motivation
systems and career opportunities are linked to personal individual performance. Vertical or
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external fit are strategies that improve all the mentioned behaviors where all the bundles in HR
system are complementary to the key business functions (MacDuffie, 1995).
To conclude, firms with higher external or internal fit are mostly assumed to perform better than
other firms with fewer characteristics. The success of technological, economic and all the social
changes are largely associated with a competitive human resource system (Ali, Ahmad and Igbal,
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Ali, M., Ahmad, Z. and Igbal, J. (2012) Human Resource Planning: A Key to Internal and
External Fit, African Journal Business management Vol.6 (27) pg. 7938-7941, July issue.
Huselid, M.A. (1995) The Impact of Human Resource Management Practices on Turnover,
Productivity, and Corporate Financial Performance, Academy of Management Journal,
MacDuffie, J.P. (1995) Human Resource Bundles and Manufacturing Performance;
Organizational Logic and Flexible Production Systems in the World of Auto Industry ,
Industry and Labor Relations review, 46, pg. 197-221.
Pfeffer, J. (1994) Competitive Advantage through People, Boston; Harvard Business School