Strategic Human Resource Management: A Guide to Action

(Rick Simeone) #1

  1. Analysers, which are a combination of the prospector and defender types.
    They operate in stable environments like defenders and also in markets
    where new products are constantly required like prospectors. They are
    usually not the initiators of change like prospectors but they follow the
    changes more rapidly than defenders. Analysers seek effectiveness
    through both efficiency and new products or markets. This dual focus
    may result in increased size, because analysers must engage in both mass
    production and research and development. They are usually not the
    initiators of change, as are prospectors, but they follow the changes more
    rapidly than defenders. They may also exhibit higher levels of interde-
    pendence than either prospectors or defenders.

  2. Reactors, which are unstable organizations existing in what they believe
    to be an unpredictable environment. They lack consistent, well-articu-
    lated strategies and do not undertake long-range planning.


Delery and Doty (1996) suggest that organizations should align their HR
systems with the strategy linked to their configuration. Two systems are
identified. In the market-type systemhiring is mainly from outside the organi-
zation, little use is made of internal career ladders, there is no formal
training, performance appraisal is results-orientated, there is not much
security, and jobs are not clearly defined. In the internal systemhiring is
mainly from within the organization, extensive use is made of career ladders,
a lot of formal training is provided, performance is appraised by behaviour-
orientated measures, there is considerable security, and jobs are tightly
defined. The prospector strategy requires a market system, while the internal
system is appropriate for the defender strategy. Delery and Doty make no
suggestions on what is appropriate for the analyser strategy, but presumably
this leads to some form of hybrid market/internal HR system.
Research conducted by Doty et al(1993) established that the Miles and
Snow theory had a high level of predictive validity. In other words, it indi-
cated a reasonably powerful link between fit, in terms of context, structure
and strategy, and organizational effectiveness. However, they did remark,
rather obscurely, that: ‘Multicollinearity may have contributed to insta-
bility in the canonical variates.’ The same research failed to establish any
significant link between organizational effectiveness and the Mintzberg
typology.


Comments on the concept of best fit


The best-fit model seems to be more realistic than the best-practice model. As
Dyer and Holder (1988) point out, ‘The inescapable conclusion is that what is
best depends.’ It can therefore be claimed that best fit is more important than
best practice. But there are limitations to the concept of best fit. Paauwe


The concept of strategic human resource management l 45

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