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.
Hi Gabriel, Boxall 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,which 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).
ReplyDeleteBest 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)
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.
ReplyDeleteHuman 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.”
ReplyDelete