INTRODUCTION
Strategic
HRM is an approach that defines how the organization’s goals will be achieved
through people by means of HR strategies and integrated HR policies and practices
(Armstrong, 2009).Business objectives
are accomplished when human resource practices, procedures and systems are
developed and implemented based on organizational needs, that is, when a strategic
perspective to human resource management is adopted.(Baird and
Meshoulam, 1988).Strategic
HRM is largely about integration and
adaptation. Its concern is to ensure that: (1) human resources (HR) management
is fully integrated with the strategy and strategic needs of the firm (vertical
fit); (2) HR policies cohere both across policy areas and across hierarchies
(horizontal fit); and (3) HR practices are adjusted, accepted and used by line
managers and employees as part of their everyday work (Schuler (1992: 18).
THE BEST PRACTICES
This approach is based on the assumption that there is a set of
best HRM practices that are universal in the sense that they are best in any
situation, and that adopting them will lead to superior organizational
performance (Armstrong,2009).Lists of ‘best practices’ have been produced, the
best known of which was produced by Pfeffer (1998a), Guest (1999):
1. Employment
security.
2. Selective
hiring.
3. Self-managed
teams.
4. High
compensation contingent on performance.
5. Training
to provide a skilled and motivated workforce.
6. Reduction
of status differentials.
7. Sharing
information.
THE
BEST FIT
The best fit model seems to be more realistic than the best
practice model. As Dyer and Holder (1988: 31).The best fit and competitive
strategies are (Porter,1985):
1.
Innovation – being the unique producer.
2.
Quality – delivering high quality goods and services to customers.
3. Cost
leadership – the planned result of policies aimed at ‘managing away expense’.
To
achieve the maximum effect it is necessary to match the role characteristics of
people in an organization with the preferred strategy ( Schuler and
Jackson,1987).
THE SIGNIFICANT FEATURES OF BEST PRACTICE AND BEST FIT IN SHRM
It is unwise to pursue so-called
‘best practice’ (the ‘universalistic’ perspective of without being certain that
what happens elsewhere would work in the context of the organization (Delery
and Doty,1996).
Best fit’ is preferable to ‘best
practice’ as long as the organization avoids falling into the trap of ‘contingent
determinism’ by allowing the context to determine the strategy (Paauwe, 2004).
The search for best fit is
limited by the impossibility of modelling all the contingent variables, the
difficulty of showing their interconnection, and the way in which changes in
one variable have an impact on others (Purcell, 1999).
Best fit can be pursued in a
number of ways, namely by fitting the HR strategy to its position in its life
cycle of start-up, growth, maturity or decline (Baird and Meshoulam, 1988), or
the competitive strategy of innovation, quality or cost leadership (Porter,
1985), or to the organization’s ‘strategic configuration’ (Delery and Doty,
1996), such as the typology of organizations as prospectors, defenders and
analyzers defined by Miles and Snow (1978).
This
concept of universality is criticized because it takes no account of the local
context. The concept of best fit emphasizes that HR strategies should be
congruent with the context and circumstances of the organization. ‘Best fit’
can be perceived in terms of vertical integration or alignment between the
organization’s business and HR strategies. (Armstrong, 2009).It is generally
accepted that best fit is more important than best practice. HR strategies set
out what the organization intends to do about its human resource management
policies (Armstrong, 2009).
BEST PRACTICE ORGANIZATION
FedEX
Among
the 100 “best companies to work for “reputation of being one of the most
employee friendly companies in the world In 2000, FedEx employee turnover rate
was 6%, well below the industry average of 20%.((fedex.com, 2018).
Employee
retention “in our competitive market place, employee loyalty tends to be low.
If employees don’t like their jobs they simply walk across the street and find
a new one. It’s important to keep your people happy and to create an
environment where they want to stay (Mc Mahan, HR manager at FedEx).
History
of employee commitment since inception in 1971, its management focused on
providing a suitable work environment that encouraged employees to come up with
innovative solutions during severe financial difficulties during the first
couple of years, the employees were prepared to sell their personal belongings
They were also prepared to use their own credit cards to purchase fuel to
deliver the packages to the customers continued working even when they didn’t
receive their salary on time (fedex.com, 2018).
Best
practices at FedEx People service profit (PSP) philosophy adopted by the
founder of FedEx. If FedEx took proper care of its employees, they would
provide efficient service to the customers. This in turn would benefit the
company by generating more profits Survey-Feedback-Action (SFA) Program.Helped
management take decisions regarding promotions.Online survey system in the US
in 1992.Each April, every employee is asked to participate in the online survey
.Managers hold feedback sessions. Best practices at FedEx leadership evaluation
and awareness process (LEAP) • Encourage non-managerial cadre employees to move
to the managerial level within the company Employee Communication Program.SFA
program guaranteed fair treatment procedure and Open Door Policy and Grievance
system (fedex.com, 2018).
Best
practices at FedEx Job change applicant tracking system (JCATS).Online computer
job posting system that allows hourly employees to post for any available job recognition
and Reward Program.Awards such as the ‘Bravo Zulu’ and the ‘Golden Falcon
Award’ (fedex.com, 2018).
BEST FIT ORGANIZATIONS
Google
Google’s philosophy is that with the right tools, you can
attract the best talent, and develop happier and more productive employees.
With these HR efforts, Google’s leadership is recognized worldwide.
Cadbury
The Cadbury culture combines positivity and balance, among work
and life.
SAS
SAS is noted for offering a high-trust environment and
exhibiting a low turnover rate. The HR department is recognized as a pioneer in
addressing day-to-day stresses and concerns that are common in a workplace
environment.
Nissan
The HR practices at Nissan include transparent salary scales and
full autonomy for leaders to recruit and build their own teams. It is a
practice not seen in the automobile industry. But, at Nissan, it is the key to production
and manufacturing success.
Twitter
Twitter is able to maintain the scrappy start-up feel while
becoming a major tech firm because of the extensive training offered to those
in leadership.
Linkedin
The HR team hosts all-company parties, complete with live music
and a night club atmosphere to reward staff members for their hard work and
dedication to the company.
Boston
Consulting Group
Mentorships and open-door communication policies with leadership
allows for creative freedom and the confidence to share ideas.Ford
The company is recognized for its HR innovation through a highly
disciplined culture, outstanding training opportunities, and strong and
consistent processes.
Shell
The company believes in having a strong, cohesive, and open
culture that works together as a team no matter what country the team member is
from. Having a global mindset is what sets Shell apart from its competitors.
Rolls Royce
The Rolls-Royce Company is long synonymous with quality training
and apprenticeships. The business model and value chain is incredibly
innovative
Sources:
Glassdoor’s
Best Places to Work – Glassdoor’s Employees’ Choice Awards 2015
Glassdoor’s
Best Places to Work – Glassdoor’s Employees’ Choice Awards 2014
Fortune’s Best
Companies – 100 Best Companies to Work For 2014
Fortune’s Best
Companies – 100 Best Companies to Work For 2013
CONCLUSION
To
put everything under consideration, one can see that best fit and best practice
approaches offer companies powerful tools for shaping human resource management
processes. The concept of best practice is based on the assumption that there
is a set of best HRM practices which are universal in the sense that they are
best in any situation and that adopting them will lead to superior
organizational performance (Armstrong, 2009). This concept of universality is
criticized because it takes no account of the local context. The concept of
best fit emphasizes that HR strategies should be congruent with the context and
circumstances of the organization. ‘Best fit’ can be perceived in terms of
vertical integration or alignment between the organization’s business and HR
strategies. (Armstrong, 2009).It is generally accepted that best fit is more
important than best practice. HR strategies set out what the organization
intends to do about its human resource management policies (Armstrong, 2009).
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In addition Kim Golding (2004) stated that best fit is one of the main methods to increase of improved and implemented performances in an organisation. Adjust the employees to the requirements and human resource management of the organisation.
ReplyDeleteIn reply to your comment,The research examined the link between business performance and organization culture and the use of a number of HR practices.HR practices explained significant variations in profitability and productivity (19 percent and 1 percent respectively). Two HR practices were particularly significant: 1) the acquisition and development of employee skills; and 2) job design, including flexibility, responsibility, variety and the use of formal teams (Patterson et al (1997).
DeleteThought this would helpful to explore more deep in to the topic, Resource-based strategic HRM can produce what Boxall and Purcell (2003) referred to as human resource advantage. The aim is to develop strategic capability. This means strategic fit between resources and opportunities, obtaining added value from the effective deployment of
ReplyDeleteresources, and developing managers who can think and plan strategically in the sense that they understand the key strategic issues and ensure that what they do enables the strategic goals of
the business to be achieved.
In addition to your comment,a resource-based approach to strategic HRM focuses on satisfying the human capital
Deleterequirements of the organization. The notion of resource-based strategic HRM is based on the ideas of Penrose (1959), who wrote that the firm is ’an administrative organization and a collection of productive resources’. It was developed by Hamel
and Prahalad (1989), who declared that competitive advantage is obtained if a firm can obtain and develop human resources that enable it to learn faster and apply its learning more effectively than its rivals.
Best practices are applied to achieve constant improvement of performance in organizations, by the supposition of strategic and systematic procedures in Human Resource Management in a specific trade or area (Martin, 2015).
ReplyDeleteAgreed and best practices refer to those that are applied by the best organizations operating in similar conditions and pursuing similar goals (Wagner, 2009, p. 69). They are applied to achieve continuous improvement of organizational performance and competitiveness by critical assumption of conceptual and system practices in management of the best organizations in a specifi c sector or region. Using best practices allows implementation of signifi cant changes on an easier, faster and cheaper basis (Axson, 2007, p. 34).
DeleteAnyway there can be certain drawbacks also. Since applying this practice will introduce mutual prohibitive combinations like team working and compensation based on one’s performance are running a huge risk (Delery 1998 in Redman and Wilkinson 2009). Further, it is also hard to have a universal best practice, since negotiations with regard to the appropriate choice of best practice did not and will not come up to a assumption due to insufficient methodology and theoretical definition. Even a practice has been fruitful for popular and successful organization, it does not inevitably work on the others.
ReplyDeletePartly agreed.However, a knowledge of what is assumed to be best practice can be used to inform decisions on what practices are most likely to fit the needs of the organization, as long as it is understood why a particular practice should be regarded as a best practice and what needs to be done to ensure that it will work in the context of the organization. Becker and Gerhart (1996) argued that the idea of best practice might be more appropriate for identifying the principles underlying the choice of practices, as opposed to the practices themselves.
DeleteArmstrong (2008) opines that it is not wise to pursue “Best Practice “strategy without knowing what happens elsewhere would work in the context of the organization. Author feels “Best Fit” strategy is preferred to “Best Practice” strategy. However,” Best Fit” strategy also has its limitations such as impossibility of modelling all the contingent variables, the difficulty of showing their interconnection and how a change in one variable impact other. This has led to emergence of a concept called “Bundling” which is development and implementation of several HR practices together so that they are interrelated and therefore complement and reinforce each other to achieve improved performance.
ReplyDeleteIt is often said that best fit is better than best
Deletepractice but this statement can only be accepted
with reservations.There may be merit in both approaches where
the debate is between general principles/bundles (training and development, staffing, compensation and benefits,communication and participation,and planning) and the manner in which they are carried out... It seems that the ‘best fit’ and ‘best
practice’ approaches of the HR-performance relationship are not necessarily mutually exclusive.On the contrary, they may be combined to provide a more holistic picture.(Stavrou et al (2010: 952–53).
Both Best fit and best practices are globally accepted norms which are tried and tested and proven methods. In today’s context of globalisation and diverse workforces, that a tailored combination of best practice and best fit approaches would be ideal. Both approaches has many advantages and also in global context most of the organizations are in to the best practice or best fit, while some of the organizations having combination of both best fit and best practice and according to Barton 2016 is the ideal approach .
ReplyDeleteThis concept of universality is criticized because it takes no account of the local context. The concept of best fit emphasizes that HR strategies should be congruent with the context and circumstances of the organization. ‘Best fit’ can be perceived in terms of vertical integration or alignment between the organization’s business and HR strategies. (Armstrong, 2009).It is generally accepted that best fit is more important than best practice. HR strategies set out what the organization intends to do about its human resource management policies (Armstrong, 2009).
DeleteProblems with the best practice models, in accordance with contingency theory, which emphasizes the importance of interactions between organizations and their environments so that what organizations do is dependent on the context in which they operate, it is difficult to accept that there is any such thing as universal best practice. What works well in one organization will not necessarily work well in another because it may not fit its strategy, culture, management style, technology or working practices. As Becker et, al(1997) remark: ‘Organizational high-performance work systems are highly idiosyncratic and must be tailored carefully to each firm’s individual situation to achieve optimum results.’
ReplyDeleteThis comment has been removed by the author.
DeleteAgreed.However,as per purcell (1999) the organizations should be less concerned with best fit and best practice and much more sensitive to processes of organizational change so that they can ‘avoid being trapped in the logic of rational choice’.
DeleteIn addition to this best practice approach and best fit approach another approach is available. According to the Basak & Pande, (2012) third one will be bundled approach. According to them that is the best option to be successes.
ReplyDeleteHuman resource management refers to practices that influence
Deleteemployees’ abilities, motivation and performance (Noe et al., 2008, p.4).Human resource management enables organizations to achieve expected organizational performance and competitiveness by achieving desired employee performance (Armstrong, 2007, p. 30). Successful human resource management differentiates successful organizations from unsuccessful organizations (Marchington and Wilkinson, 2005, p. 3).
It is also can be added when a person or person who corresponds to a particular job and the role of the individual is important because it determines whether the employee is suitable for the job (Zheng et al., 2010). Overall, staff satisfaction, happiness and staff compliance can be determined by work, which can affect salary, Patten's supervision and the next level of promotion.(McNeese-Smith, 1997; Kangas et al., 1999).
ReplyDeleteAs stated by Shih et al (2005) as follows:
DeleteJob infrastructure – workplace arrangements that equip workers with the proper abilities to do their jobs, provide them with the means to do their jobs, and give them the motivation
to do their jobs. These practices must be combined to produce their proper effects.
Training programmes to enhance employee skills – investment in increasing employee skills, knowledge and ability.
Information sharing and worker involvement mechanisms – to understand the available alternatives and make correct decisions.
Reward and promotion opportunities that provide motivation – to encourage skilled employees to engage in effective discretionary decision-making in a variety of environmental contingencies.
To manage human resources effectively, it is essential for an organization to encourage their employees behaviour towards the success of their competitive strategy (Hsieh, 2011). Best practice strategy will lead to a highly motivated environment and helps employee committed towards what they do. To achieve competitive advantage, it is always better to apply best fit strategy. In the modern world, organizations should align their practices with their strategy in both individual and organizational level for a high-level performance.
ReplyDeleteIn addition to your comment and following this contribution from Guest, any explanation of the impact of HRM on organizational performance is likely to be based on three propositions:1) that HR practices can make a direct impact on employee characteristics such as engagement, commitment, motivation and skill; 2) if employees have these characteristics it is probable that organizational performance in terms of productivity, quality and the delivery of high levels of customer service will improve; and 3) if such aspects of organizational performance improve, the financial results achieved by the organization will improve. This can be described as the HR value chain.
DeleteHi Gabriel, as described by Maloney (2014), the common understanding of both best fit and best practice approaches views Strategic Human Resource Management as having an important role in maintaining and strengthening organizational strategy and objectives. Both agree the reward system is important and should be consistent with other HR practices and plays an important part in attracting suitable applicants and retaining current employees.
ReplyDeleteAgreed.the reward system in a organization is very important and as per Ghoshal and Bartlett (1995), the overall aim of reward management should be to ‘add value to people’. It is not just about attaching value to them. More specifically, the aims are to support the achievement of business goals through high performance;develop and support the organization’s culture ; define what is important in terms of behaviours and outcomes;reward people according to the value they create reward people according to what the organization values;align reward practices with employee needs help to attract and retain the high-quality people the organization needs win the engagement of people.
DeleteIt can be also added that Human Resource Management (HRM) of an organization is a very critical area. It is necessary to manage the individual performance. This would be the key to the organizational success. If the staff is on the right track and aims to achieve its own goal, the company will achieve its goal, otherwise the organization will not benefit from the competitive advantages of its competitors at all levels of the company and staff performance.(Lado and Wilson, 1994; Dessler, 2011).
ReplyDeleteFurther add to your comments,the Legge (1989) stated that human resource policies should be integrated with strategic business planning and used to reinforce an appropriate (or change an inappropriate) organizational culture, that human resources are valuable and a source of competitive advantage, that they may be tapped most effectively by mutually consistent policies that promote commitment and which, as a consequence, foster a willingness in employees to act flexibly in the interests of the ‘adaptive organization’s’ pursuit of excellence.
DeleteBoxall and Purcell (2003) argue that the 'best practices' have become ends in themselves, apparently disconnected from the company's goals in its specific context. In that context, Becker and Gerhart (1996) point out that the concept of best practices can be accepted for identifying the principles underlying the choice of practices, however human resource practices should be embedded in organizations in a way that they fit organization's needs. Purcell et al. (2003) in their research of people and performance link show that there is no universal 'best practice'. On the contrary, they argue that all successful companies have broad and integrated clusters of practices that are tailored to the needs of the organization.
ReplyDeleteEmployee performance refers to employees’ results and behavior, determined by employees’ abilities and motivation,
Deletewhich enable organizations to achieve expected goals.A natural goal of any organization started and operated in order to assess investments is to gain and maintain regular and satisfied customers by producing and distributing demanded products and services and so achieve expected outputs or results (Drucker, 2007, p. 29).
It is often said that best fit is better than best practice but this statement can only be accepted with reservations. As Stavrou et al. (2010: 952–53) argued,there may be merit in both approaches where the debate is between general principles/bundles (training and development, staffing, compensation and benefits, communication and participation, and planning) and the manner in which they are carried out. It seems that the ‘best fit’ and ‘best practice’ approaches of the HR-performance relationship are not necessarily mutually exclusive. On the contrary, they may be combined to provide a more holistic picture.
ReplyDeleteThe concept of best practice is based on the assumption that there is a set of best HRM practices which are universal in the sense that they are best in any situation and that adopting them will lead to superior organizational performance (Armstrong, 2009).The concept of best fit emphasizes that HR strategies should be congruent with the context and circumstances of the organization. ‘Best fit’ can be perceived in terms of vertical integration or alignment between the organization’s business and HR strategies. (Armstrong, 2009).It is generally accepted that best fit is more important than best practice.
DeleteThis comment has been removed by the author.
ReplyDeleteResource-based strategic HRM can produce what Boxall and Purcell (2003) referred to as human resource advantage. The aim is to develop strategic capability. This means strategic fit between resources and opportunities, obtaining added value from the effective deployment of
ReplyDeleteresources, and developing people who can think and plan strategically in the sense that they
understand the key strategic issues and ensure that what they do supports the achievement of
the business’s strategic goals. In line with human capital theory, the resource-based view
emphasizes that investment in people increases their value to the fi rm
The resource-based view emphasizes the importance of creating firms that are ‘more intelligent and flexible than their competitors’ (Boxall, 1996) by hiring and developing more talented staff and by extending the skills base.
DeleteHuman resources management (2016) states that “the best-fit model emphasizes that HR strategies and organizational strategies must be aligned. In other words, it is important to make sure the HR strategies are suitable in different circumstances along with the culture and operational process as well.”
ReplyDeleteBest fit can be pursued in a number of ways, namely by fitting the HR strategy to its position in its life cycle of start-up, growth, maturity or decline (Baird and Meshoulam, 1988), or the competitive strategy of innovation, quality or cost leadership (Porter, 1985), or to the organization’s ‘strategic configuration’ (Delery and Doty, 1996), such as the typology of organizations as prospectors, defenders and analysers defined by Miles and Snow (1978).
DeleteHi Gabriel,
ReplyDeleteIt is observed that Best-fit model is more realistic than the best-practice model (Armstrong,2008). However, there are limitations to the concept of best fit as this model tend to be static and needs to adapt to contingencies (Paauwe, 2004).
As Richardson and Thompson (1999) commented, ‘A strategy’s success turns on combining vertical or external fit and horizontal or internal fit.’ They concluded that a firm with bundles of associated HR practices should have a higher level of performance, providing it also achieves high levels of fit with its competitive strategy.
DeleteHi,the best fit enables synergies effect throughout the company, improve procurement, resource allocation, and usage, and improve profitability opportunities. It helps organizations to reduce operational costs, environmental changes, and take advantage of new possibilities such as internationalization (Hsieh and Chen, 2011 & Swoboda, 2016)
ReplyDeleteAs per Purcell (1999: 35) pointed out that: ‘each firm has to make choices not just on business and operational strategies but on what type of HR system is best for its purposes’.
DeleteHi Gabriel,
ReplyDeleteConceptually, the idea of fit is persuasive, which is why it continues to play an important role in strategic HRM research (Becker & Huselid, 2006). However, to date, only limited empirical support for the impact of fit exists. For example, how to measure the potential synergistic effects of systems of HR practices proposed in internal fit is not clear (Boselie et al., 2005). In addition, the current operationalization do not do justice to the complexity of the fit concept (Gerhart, 2004). In strategic fit models, strategy is often oversimplified in static constructs (e.g. cost leadership versus differentiation) that do not capture the full breadth of business strategies in contemporary organizations (Boxall & Purcell, 2008).
According to Hendry and Pettigrew (1986),strategic HRM has four meanings.
Delete1)The use of planning
2.A coherent approach to the design and management of personnel systems based on an employment policy and manpower strategy and often underpinned by a ’philosophy’.
3.Matching HRM activities and policies to some explicit business strategy.
4.Seeing the people of the organization as a ’strategic resource’ for the achievement of ’competitive advantage’.
Best practices in human resource management refer to practices that are connected by the best organizations working in comparable conditions and seeking after comparative objectives. They are connected to achieve continuous improvement of performance by critical assumption of vital and fundamental practices in resource management the board of the best organizations in explicit segment
ReplyDeleteŠikýř 2015)
The approach based on application of best practices in human resource management is one of the alternative approaches to research the link between human resource management and organizational performance and competitiveness (Delery and Doty, 1996,p. 802).
DeleteAs best fit generally aligned with the better quality than external organizations in terms of attracting and retaining employees, rewards system should be comparable and satisfied by the employees (Morris & Maloney).
ReplyDeleteFurther to your comments,the underlying premise of best fit is that a close alignment between organisational strategy and other systems, including reward, can improve organisational effectiveness. Although the idea that pay should be linked strategy is not new, it received impetus in the 1990s with works by Schuster and Zingheim (1992, 1993) and Lawler (1995) discussing the merits of ‘new pay’.
DeleteHR practice that can be applied in most of the organizational context to increase performance that helps produce a better outcome. It indicates a strong connection between HR practices and organizational performance that requires high commitment management (Paauwe & oselie 2003).
ReplyDeleteAgreed.However,the best-practice model are based on the idea of superiority of the organizational performance and Pfeffer’s model is a good example of the set. His model shows seven important HR practices which are employment security,selective hiring, self-managed teams, high compensation contingent on performance, training, reduction of status differentials and sharing information. (Armstrong 2006, p. 65)
DeleteBest fit enable synergies effect throughout the company, improve procurement, resource allocation and usage and improve profitability opportunities. It helps to reduce the operational costs, environmental changes, and take advantage of new opportunities such as internationalization ( Swoboda, 2016).
ReplyDeleteTo adding further,according to Porter (1996), fit refers to the network of closely related elements and activities that emerged in a specific organizational context and thus present an important obstacle for imitation by competitors. In addition to helping the firm to manage their resources more effectively, fit enables synergy effects throughout the firm, improved procurement, allocation and use of resources and increased earning capability.
DeleteThe Best-practice model claims that certain sets of HR activities exist which universally support companies in reaching a competitive advantage regardless of the organizational setting or industry (Redman and Wilkinson 2009).
ReplyDeleteBoth approaches believe that HR practices should be complimentary. However, according to Purcell (1999, p. 27), ‘…what is most notable about the best practice model is there is no discussion on company strategy at all.’ The underlying premise of this view is that organisations adopting a set of best practices attract super human resources, talent and competencies. “These superior human resources will, in turn, influence the strategy the organisation adopts and is the source of its competitive advantage.” (Milkovich & Newman, 2002, p. 30) Therefore, for this approach, policy precedes strategy.
DeleteArmstrong (2010) indicates that the “best practices” can be adopted by organizations in the mode of benchmarking. Therefore, still the ‘best fit’ is more important than ‘best practice’. It means, the innovation needs to be met with the business requirements, which are susceptible for varying from “best practice’ organizations. It needs to be able to demonstrate that the innovation is beneficial, practical and appropriate for the circumstances, and should be able to implement without much difficulties.
ReplyDeleteThe Best-practice model claims that certain bundles of HR activities exist which universally support companies in reaching a competitive advantage regardless of the organizational setting or industry (Redman and Wilkinson 2009). Which means that it contemplate those bundles of HR practice that can be applied in most of the organizational context to increase performance that helps produce better outcome. It implies a strong connection between HR practices and organizational performance that requires high commitment management (Paauwe & Boselie 2003).
DeleteThe best-fit model emphasizes that HR strategies and organizational strategies must be aligned. In other words, it is important to make sure the HR strategies are suitable in different circumstances along with the culture and operational process as well. Thus, according to Armstrong (2006, p.138), it is an idea that different HR strategies have to focus on a given needs of both the organization and its employees.
To put everything under consideration, both models offer organizations powerful tools for shaping human resource management processes. There will not be any absolute judgments on which approach works best, but best-fit models works better in overall, as it has a huge appeal to the HR practitioners due to the fact that it positions them as the first-level strategic partners in the process of management decision making.
Best practice will enhance the skill level of the current work force,and with recruiting same will reinforce the culture of the highly skilled work force(Mullins,L.2005).Stratergic HRM has gained both credibility and popularity over the past decade specifically with respect to its impact on organizational performance(Paauwe,J&Boselie.P,2003).
ReplyDeleteThe Best-practice model claims that certain bundles of HR activities exist which universally support companies in reaching a competitive advantage regardless of the organizational setting or industry (Redman and Wilkinson 2009). Which means that it contemplate those bundles of HR practice that can be applied in most of the organizational context to increase performance that helps produce better outcome. It implies a strong connection between HR practices and organizational performance that requires high commitment management (Paauwe & Boselie 2003). The best-practice model are based on the idea of superiority of the organizational performance and Pfeffer’s model is a good example of the set. His model shows seven important HR practices which are employment security, selective hiring, self-managed teams, high compensation contingent on performance, training, reduction of status differentials and sharing information. (Armstrong 2006, p. 65)
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ReplyDeleteHi, Best practice proponents believe that human resources activities should be carried out following a set of HRM practice which is capable with improving any organisational performance irrespective of the location and size of the organisation (Marchington & Grugulis, 2011). Conversely, advocates of best it model affirm that if human resource policies of any organisation align with business strategy, high performing work practice will be achieved (Armstrong,2012).
Further to your comments,Human resource (HR) practices denote the organizational activities aimed at managing the pool of HRs and ensuring that these resources are directed towards the achievement of organizational goals(Chew,2004).HR practices traditionally play an important role in influencing employee attitudes and behavior (Nivethitha, Dyaram & Kamalanabhan, 2014).Momemi, Marjani and Saadat 2012) suggest that, particularly in the 21st century, HR practitioners recognize the importance of HR practices and their impact on employee performance, job satisfaction, commitment and retention.
DeleteJames Lincoln's reward system is the heart of the successful individual performance working system. In the US, Lincoln employs a highly paid workpiece system that is linked to individual employee results based on a multitude of job-related factors (Björkman & Galunic, 2003).
ReplyDeleteFurther to your comments on reward system,Cappelli (2008: 196) wrote that: ‘When employees fail in their jobs, part of the organization also fails.’Performance management aims to eliminate or at least significantly reduce this possibility. Pulakos (2009: 3) emphasized that: ‘Performance management is the key process through which work gets done. It’s how organizations communicate expectations and drive behavior to achieve important goals; it’s also about how organizations identify ineffective Performers for development programmes or other personnel actions.’
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