ABSTRACT
This chapter examines the conceptual/theoretical models and research regarding how firms seek to achieve both fit and flexibility in their HR systems. Fit as mediation is probably the most frequently and thoroughly researched model of fit. The chapter discusses HR flexibility, which is viewed as a firm-level construct encompassing the resource and coordination flexibility of a firm’s HR practices, employee skills, and employee behaviours. Related to the concept of flexibility is the more recent construct of ‘organizational ambidexterity’. Flexibility represents a characteristic or a trait signifying an ability to meet changing competitive needs. The chapter argues that strategic human resource management (SHRM) encompasses a firm’s strategy, its HR practices, and the skills and behaviours of employees. SHRM theory normally suggests that the aim should be to ensure a ‘vertical’ fit and a ‘horizontal’ fit. SHRM researchers focused on aligning HR practices with strategy and so they often examined how the relationship between HR practices and performance might differ across strategies.
