Human Resource Management is one of the crucial factors to be considered in the process of driving the organisation towards the success (Armstrong, 2006) Managing. human resources well, supports in achieving organisational goals and objectives properly where motivating the employees of the company through various HR policies and Strategies directs the employees towards the mission effectively and efficiently (Prasad, 2012).
According to Baird and Meshoulam (1988), if the human resource practices, systems and policies are established strategically according to the needs and wants of the organisation, the company can easily achieve its business objectives. Human Resource Management plays a major role as a strategic tool in achieving organisational goals through predefined policies and procedures (Johnson, 2000). According to Johnson (2000), this process is called as best practice that positively impacts on the performances of the organisation.
The best practice and best fit models have evolved with the organisational aim of gaining competitive advantage (Prasad, 2012). According to Prasad (2012), this is a universalistic approach that leads in directing and controlling the human resource of the organisation. According to Boxall and Purcell (2003), in order to get the maximum benefit of the application of Best Practice and Best Fit approach, the Human Resource Management Strategies of the company need to go par with the business objectives and the business strategy of the organisation.
(Persaud, 2013)
List of References
Armstrong, M
(2006), a Handbook of Human Resource Management Practice, Kogan
Page Publishers
Boxall, J and Purcell, P
(2003), Strategy and Human Resource Management, Industrial and labour
relations review
Baird, L and Meshoulam,
I (1988) Managing two fits of strategic human resource management, Academy of
Management Review, 13 (1), pp116–28
Johnson, E. (2000). The
practice of Human Resources Management in new Zealand: Strategy and Best
Practice? Asia pacific Journal of Human Resources, 69
Persaud, J. (2013), How
HR can master strategy, MA Business Ltd, London
Prasad, K. (2012) Strategic
Human Resource Development: Concepts and Practices, PHI Learning Pvt Ltd
I agree with above content. The best-fit model emphasizes that HR strategies and organizational strategies must be aligned (Armstrong, 2006). The 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).
ReplyDeleteDear Chandran, thank you for your valuable comment. Yes, as per Armstrong (2006), HR strategies and organizational strategies must be aligned where the best practice and best fit models have evolved with the organisational aim of gaining competitive advantage (Prasad, 2012).
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ReplyDeleteconfirming the statement, The best practice model is based on organizational performance advantage. The Pfeffer model is a good example. His model shows seven important human resource practices, namely employment security, selective recruitment, self-management team, high-performance compensation, Training, reducing position differences and sharing information (Armstrong, 2006)
Dear Sahan, thank you for your valuable comment. Yes, the Pfeffer model (1998) well described the HR practices to be used by an organization namely, Employment security, Training, Reduction of status differentials, Sharing information, Self-managed teams, Selective Hiring and High compensation contingent on performance
DeleteNolte (2010)'s research highlights how the Best-Fit model could help discover unique mannerisms within an organisation so that there is a conscientious decision on why and how a best practice should be adopted and practiced for the specific case.
ReplyDeleteDear Kanchana, thank you for your valuable comment. Yes, much more attention needs to be given for the business aim and the strategy and the business environment when applying the best practice model within the organization.
Deleteeffective and efficient system of human resource management that enables an organization to attract, employ and develop enough capable and motivated employees and achieve expected organizational performance by achieving desired employee performance. But usually influenced by many external and internal conditions. Therefor SHRM should use these two types of approaches in order to chive organizational goals (Bakshi1 et al,2014 and sikyr,2015).
ReplyDeleteDear Oshantha, thank you for your valuable comment. In order to drive the organization towards the success through achieving its goals and objectives in an effective and efficient manner, much more attention needs to be given for the proper application of best practice model while considering on managing human resources well
DeleteAgreed, HRM has a major impact on employees either directly or indirectly. They are in very close contact with the employee absenteeism, flexibility and employee turnover. therefore, they work more towards employee motivation so they could increase their performance levels (Lawler, & Mohrman, 2003).
ReplyDeleteDear Shakir, thank you for your valuable comment. Yes the goal of the HRM is to attract and retain suitable employees within the organization that will directly support in achieving the ultimate goal of the organization.
DeleteAgreed on the introduction where the best fit required for an organization to increase the effectiveness while gaining competitive advantages through par with the organization"s strategies and better fit will gain a greater competitive advantage to the organization (Croonen and Grunhagen,2016).
ReplyDeleteDear Nayani, thank you for your comment, Yes, Effectivness can come through the employee motivation as well. The culture of the organization and different HR practices influence on motivation. These ensure a positive impact on performance (Bakshi et al. 2014)
DeleteHi Yohan, the importance of HRM on the proper functioning of an organization cannot be overstated. After all, HR is involved in strategic management, wages and salaries, analyzing benefits, managing safety and risks and training to name a few (Armstrong, 2006). Therefore, best practice and best fit models need to be incorporated to ensure HR policies and practices align with company goals and objectives in order to sustain a competitive advantage (Persaud, 2013).
ReplyDeleteHi Jehan, Yes I agreed,Both these approaches, best fit and best practice believe that HR practices must be admiring.(Bakshi et al. 2014)
DeleteAgree with your article furthermore , As per Bakshi et al.,(2014) HR practice needs to be complimentary based on the belief of both best practice and best fit however, according to Purcell (1999) the company strategy is not discussed in best practice model and one of the most noted points.
ReplyDeleteHi Mizni, Thank you for the comment, If suitable practices in human resources management could apply to an organization, it can positively impact on organizational performance by influencing employee performance (Sikyr, M.2015)
DeleteI agree with the facts of this article. It gives a clear explanation on the best fit and best practice concepts. It has clearly pointed out the different aspects of these to concepts in which an organization could use in the field of human resource management. Boxall (2003), has stated that organizations are highly encouraging employees to accept best practices.
ReplyDeleteHi Namal, Thank you for the comment, however I don’t agree on what you have stated, in some cases the best fit model seems to be more realistic than the best practice. Stavrou et al (2010: 952-73) 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 HRperformance relationship are not necessarily mutually exclusive. On the contrary, they may be combined to provide a more holistic picture.”
DeleteHi Yohan, I do agree with the above blog post. There are Different ways of understanding how HRM can play a strategic role into the organization and to evaluate if it can have an impact into the organization’s performance took into consideration two approaches. The first one, best practice, based on the belief that there is a superior set of HR policies, that applied into a wide variety of circumstances will improve the organizational performance. The second approach, best fit, took into consideration the idea that there is no universal prescription, it depends on the internal and external context of the organization and it is “contingent” upon organization (Bakshi, Mathur, Bhagat & Kalyankar, 2014).
ReplyDeleteHi Sithari, thank you for adding more value to my blog Post. Yes, there are different ways of understanding how Human Resource Management plays a strategic role in to the organization and whatever the method, that needs to ultimately support in achieving the goals and objective of the organization in an effective and efficient manner.
Deleteagreed.The "best fit" perspective claims that a firm's reward system should be aligned to support the organization's business strategy in order to achieve competitive advantage. "Best practice" advocates claim that there is a bundle of HR policies including the reward system that lead to highly motivated and committed employees who are the key to an organization's competitive advantage.
ReplyDeleteRadchika, thank you for your comments and yes through best practice model, the organisation can gain the maximum output of the employees towards achieving the goals of the company (Armstrong, 2006).
DeleteAgreed, but The best practice approach suffers from a series of limitations. Such as when implementing best practice standards organizations run risk of introducing mutually prohibitive combinations like team working and compensation based on individual performance resulting in a deterioration of employee collaboration through overexaggerated competition.
ReplyDeleteHi Chathura, Yes, when implementing best practice there are many factors which have to consider about.
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ReplyDeleteAccording to “best practice” approach there is a set of successful HR policies that can be applied successfully in all firms no matter their activity area. Pfeffer (1994) developed a set of sixteen best practices reduced in 1998 to seven: employment security, selective hiring, self managed teams/team working, high compensation contingent on organizational performance, extensive training, reduction of status differentials and sharing information
ReplyDeleteThank you for the comment Sheron, Agreed and I have addressed this under the subtopic of Best practice.
DeleteAgree with you Yohan,
ReplyDeleteBest practice models imply a close connection between HR practices and organizational performance and are often associated with high commitment management (Paauwe & Boselie 2003).