Configurational models of HRM stress internal fit; that is, the development of coherent bundles of HR practices that reinforce one another. An appropriate configuration of HRM, it is also suggested, must show external fit and be matched to the needs of a particular business strategy. In Delery and Doty's version of this argument, it is argued that defender and prospector firms will each require distinct configurations of HRM, embracing resourcing, development, employee relations, reward management, and the structure of the HR function itself. Defenders require an ‘internal employment system’, based on long-term employment and skill development, whilst prospectors will require a ‘market employment system’, in which human resources are hired for relatively short-term contracts and there is little emphasis on skill development. [See also bundles theorists and contingency theory.]
Subjects: Human Resource Management.