Aligning strategic human resource management and person–environment fit

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Abstract

Strategic human resource management addresses the need to create vertical linkages of human resource management (HRM) attributes with corporate strategy as well as horizontal linkages that integrate practices among HRM functions. Most models commonly focus on either vertical or horizontal linkages. This paper utilizes three categories of person–environment fit to create both vertical and horizontal linkages. Based on a strategic contingency framework, it demonstrates how person–environment fit relates to organizational competencies that supports corporate strategy. Furthermore, it demonstrates how person–environment fit can be used to promote internal alignment of HRM practices. Implications of this approach to strategic human resource management are then discussed.

Section snippets

HRM as a means to institutionalize competitive advantage

The resource-based view of the firm (Barney, 1991) has been gaining increasing popularity within the strategy literature (c.f., Blyler & Coff, 2003; Teng & Cummings, 2002; Priem & Butler, 2001). This view of the firm infers that firms create competitive advantage by implementing unique combinations of resources and business practices that are difficult (or impossible) for competitors to imitate (Barney, 1991). From this perspective, HR practices have the potential to be key components of

Person–environment fit and strategic HRM

Person–environment fit (PE fit) can be used to guide the development of strategic HRM and create consistent messages that are shared by all managers in the firm. Based on a strategic contingency perspective, selection of the appropriate fit is critical to support the firm strategy and ultimately achieve a competitive advantage. This choice, then informs decisions related to which types of HRM practices are strategically consistent with the overall organization culture and goals.

PE fit in a work

Types of PE fit and vertical linkages

Given that different types of PE fit can be used to create vertical and horizontal alignment of SHRM, it is important to demonstrate how PE fit does this (see Fig. 1). Focusing on vertical linkages, the types of fit are related to different organizational competencies. Organizations use their specific/unique competencies to form the basis for creating competitive advantage in the marketplace. Fig. 1 identifies three unique classifications of organizational competencies and links them with the

Horizontal alignment of PE fit and HRM practices

Internal alignment is concerned with creating compatible HR practices to support strategically driven organizational competencies (Wright et al., 2001, Snell et al., 1996). The purpose of internal alignment is to develop a culture that emphasizes specific organizational competencies. From a resource-based view of the organization, the internal alignment makes human capital-based organizational competencies difficult to replicate. Building a strategically aligned culture is a slow process.

Discussion

In summary, we proposed that PE fit is a central concept in SHRM for three reasons. First, PE fit is one of the dominant paradigms that guided HRM practices for over 75 years. While this focus has traditionally addressed PJ fit, both PO and PG fit are emerging as important types of PE fit to drive HRM practices and procedures. Second, the different types of fit are important in making vertical linkages that guide human resource practices to support the development of organizational

Acknowledgements

The authors appreciate the comments by Steven Maurer, Janice Miller and Kira Rilington that helped to improve the quality of this manuscript.

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