Section Twopersonnel practices vary according to the environment in which
companies operate. However, industrial categories do not
explain all such differences because variations in company
strategies also determine human resource policies and
practices. Companies generally try to avoid excessive emphasis
on achieving a fit between their strategies and human resource
policies and practices. Excessive concern with fit can be
detrimental, since there must be transition periods during which
mismatches will occur. Likewise, too much fit between a
company’s human resources and its strategies may
unnecessarily restrict the range of employee skills, detract from
innovation, and limit the capacity to change.^36
Human Resource Planning or Staffing Planning
Human resource planning provides input into higher-level
strategic planning processes. One benefit of such planning is
that, regardless of the accuracy of forecasts involved, the very
act of developing forecasts forces managers to reassess the
fundamental assumptions under which the organization
operates. Other contributions of human resource planning are
that it signals the need for change and serves to guide the
activities within human resource management toward greater
compatibility with the organization. The process of human
resource planning, in sequential order, includes environmental
scanning and an interface with strategic planning, forecasting