The best-fit approach underlines the importance of assuring that HR strategies are performances. This takes into account, through the circumstances of the organization's culture, operational processes and external environment. Thanks to that, HR strategies consider two points, the organisation itself and its employees. However, this kind of HRM cannot be universally applied because it depends on the context. So you cannot apply it for all the HR systems.
According to Schuler and Jackson (1987), the business performances will facilitate the application of HR practices. The cost leadership, quality enhancement and innovation supported their choices of competitive strategy. Under this model, organizations need to work out the required employee behaviours to implement a chosen competitive strategy and devise supporting HR practices to increase the motivation in the workforce.
Then, following the principles discussed above we can establish links between corporate culture, corporate strategy and HRM. First, the company's culture can be the performance. Performance could be established by the HR supporting. Then, we can see that the HR supporting depends of three points: the cost leadership, quality enhancement and innovation. After that, we can link the HRM and corporate culture point with the corporate strategy. In fact, thanks to the performance, the cost leadership, the quality enhancement and the innovation, the company can have a competitive strategy.
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