Is a concept particularly relevant to recent developments in HRM. It usually refers to the importance of ensuring that there is an appropriate match between the human resources policies and the wider business policies within an organization. Whilst this perhaps seems obvious, commentators have pointed out the way that human resource policies are often developed in isolation, with little concern for the wider business objectives, or else have emerged through developments in the organization's history. Consequently, there is often a mismatch between current human resource policies and business objectives. To overcome this, some commentators argue that a human resource strategy should be integrated with the organization's business strategy—although there is considerable disagreement over which aspects of business strategy should guide the human resource policy (see external fit). Critics suggest that achieving this type of integration is either unnecessary (see bundles theorists) or unfeasible.
Subjects: Human Resource Management.