How do you understand the suggestion that the contract of employment is gradually changing to a contract for performance?  The philosophy of HRM set out in this chapter makes no reference to the customer. David Ulrich, a professor at Michigan Business School, believes that it is important to refocus HR activities away from the firm towards the customer so that suppliers, employees and customers are woven together into a value-chain team. What difference do you think that would make?  How far do you think it is possible to agree with both the ‘best fit’ and ‘best practice’ perspectives on HRM? In what ways are they compatible with each other?

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