The findings that HRM should fit with business strategy, and either internal and external contexts provide further strong support for the best fit or the contingency approach, Although scholars may focus on different aspects of fit, they agree that to achieve better performance, HRM should be able to fit itself, or adjust to its surrounding internal and external, as does business strategy. This means organizations need to be flexible.
There are many aspects of HRM highly regulated by the Indonesian government, such as the minimum wage, insurance, occupation health safety, equal employment opportunity, etc. All aspects of HRM are affected by the legal and regulatory environment; accordingly organizations should pay attention and ensure that their HR strategies do not contradict with the regulations. There are many studies that provide evidence that HRM varies across nations due to adaptation to government regulations. In some countries it could be at the regulations to protect the employees, while in others it may be that they provide more benefits to employers or employees.