According to Samnani and Singh (2013)
the best practices method requires trial and error and it creates standardised
HR practices at the unit level. The best fit policies are often amended
according to the strategy changes of the company in response to the competition
of the external environment and this will annoy the employees of the company
that will ultimately demotivate the employees in the process of driving towards
achieving goals of the company (Samnani and Singh, 2013). As per Morris and
Maloney (2005), the best practice methods treat all the employees in a same
manner and do not encourage the individual performances of the employees. The
best practice models are incompatible with the other HR systems such as
employee selection and performance evaluation systems of the organisation (Morris
and Maloney, 2005).
The best practice model does not have a
direct linkage with the strategies of the organisation where it will not
support the particular requirements of the employees (Milkovich and Newman
(2002). According to Boxall and Purcell (2003), in the dynamic business
environment the HR strategies need to be come across with appropriate
alterations and therefore there is no specific best practice and best fit model
for a longer period. The HR practices need to align with every step of the life
cycle of the company where rapid alterations will show inconsistencies within
the HR culture of the company (Boxall and Purcell, 2003).
As per Wiriadinata (2011) achieving
competitive advantage through reducing cost might reduce the employee interest.
This may hinder the HR policy of attracting and retaining suitable employees to
the organisation and several issues may arise when the organisation go beyond
those HR practices (Wiriadinata, 2011). The best practice approach deteriorates
the synergy of the employees of the company since best practices produce
automated workers (Redman and Wilkinson, 2009). As per Redman and Wilkinson
(2009), the best practice approach concerns on sophisticated procedures that
require large inputs of planning and controls and high commitment of the
employees and the management of the company.
According to Eilertsen (2017), the best
practice approach influences the company adversely and has a negative impact on
organisational success. Best practices can hinder organisational performances
and dilute the strategic differentiation of the company through the less
attention given for associated dynamics (Eilertsen, 2017). According to Hannah
(2011), the best practice approach copies what others do and making them
according to the unique needs of the organisation is a real challenge. It is
required careful attention for all the business operations of the company to
apply the best practice and best fit model (Hannah, 2011).
The Best practice and best fit model
expects more from the employees than they can give and it overlooks employee
interests (Anon, 2016). The Best practice and best fit model shape the employee
behaviour according to the organisational strategy and the huge involvement of
the employer hinders the motivation, commitment and the productivity of the
employees of the company especially with the cost leadership approaches (Anon,
2016). According to Armstrong (2006), being affected by the cost reduction
model, the best fit approach will reduce the staff benefits and the pay will be
based on the high output that will hard to achieve by every employee of the
organisation. High sophisticated and systematic best fit approaches align with
the organisational strategies are not always suitable for an organisation in a
dynamic business environment (Armstrong, 2006).
According
to Jennings et al (2009), the best practices are standardized and formalized
and cannot apply for every situation of the organisations. For an example,
according to the HR director of one of the leading garment manufacturing organisations,
there are different levels of people needed for the operations including
supervisors, machine operators as well as HR assistants and Accountants. In
such context, same formal procedures including routinized manual and prescribed
orientations, use of checklist cannot be fully used for the candidates in
different categories. For
an example, if it is a skilled worker, the recruitment needs to be done by “on
the job test” or practical interviews where for unskilled, it can use written
or oral tests. Health check-ups are essential for the factory workers and that
is not mandatory for non-factory workers. Skilful labours need to retain within
the company for the sustainable development and therefore it is essential to
give individual special attention. In
such context it is vital to encourage the skilled labours using facilities above
the industry averages that are provided to retain talent within the
organisation by the best practices.
Further
above said standard procedures are not always applicable for a company which
operates in a dynamic environment where it is necessary to access the
adaptability of the employees (Jennings et al, 2009). The garment manufacturing
organisations in Sri Lanka are highly exposed to the volatile external factors
including economic, political and technological (Porter, 1980). In such
situation, people who will be recruited for managerial positions need to be
selected using special recruitment and selection procedures rather than using
fixed formal procedures like routinized manual and prescribed orientations and
use of checklist.
As per
Morris and Maloney (2005), the best practice model is incompatible with reward
and performance evaluation system of the organisation. For an example, the best
practice model does not consider individual performance of the employees of the
organisation and does not appraise the individual efficiencies. In a company in
the garment industry, it is vital to evaluate the individual performances and
reward them accordingly due to several reasons including those organisations
are operating with strict deadlines and failure to meet such requirements will
result in cancelling the full order, and most of the people are specialised to
one area and therefore an absence of a person will result in delaying and
hindering the smooth process.
As per Marchington and Wilkinson (2002),
the best practice approach is not suitable for small organisations since the
best practices are sophisticated and rigid with the organisational strategies
that will not compatible with the prevailing business competition. If a company
follows “one sizes fits all” for the enhanced organisational performances,
there need to have well capable employees with positive synergies between them
(Marchington and Wilkinson, 2002). The best practice and best fit approaches
hinder the basis of organisational commitments including relationship and trust
in between the employee and the employer (Morris, 2007). According to Morris
(2007), deterioration of the relationship and trust in between the employee and
the employer will lead in weaken the strategic process of the organisation
towards the growth and the development.
List of References
Anon (2016), Best Fit Vs Best Practice New York Essays, Available at: https://newyorkessays.com/essay-best-fit-vs-best-practice/ [Accessed: September 16, 2019].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
Eilertsen, S. (2017), “Best Practices aren’t always best”, Business Strategy, Scholl of business and management, Pepperdine University, California
Hannah, S. (2011), Is ‘best practice’ holding you back? HR consultancy ETS
Jennings, J. E., Jennings, P. D., & Greenwood, R. (2009), Novelty and new firm performance; the case of employment systems in knowledge-intensive service organizations, Journal of Business Venturing, 24, 338–359
Marchington, M. and Wilkinson, A. (2002), People Management and Development, London: Chartered Institute of Personnel and Development.
Milkovich, G.T and Newman, J.M (2002), Compensation, McGraw-Hill
Morris, D. and Maloney, M. (2005), Strategic Reward Systems: Understanding the Difference between ‘Best Fit ‘and ‘Best Practice’, Department of Management National University of Ireland.
Morris, D. (2007), Strategic Reward Systems: Understanding the Difference between ‘Best Fit’ and ‘Best Practice, the Pennsylvania State University.
Porter, Michael E. (1980).
Competitive Strategy, Free Press.
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Redman, T. and Wilkinson, A. (2009) Contemporary Human Resource Management: Text and Cases, Prentice Hall-Financial Times, Third Edition
Samnani, A., & Singh, P. (2013), Exploring the fit perspective: an ethnographic approach, Human Resource Management, 52(1), 123
Wiriadinata, M. (2011), “Best Practice” and the “Best Fit”. Are the approaches substitutes or complement? Why?
