According to Hsieh
(2011), best HR practices and Best Fit support in creating a strong
relationship in between the human resource management and the performances of
the organisation where it emphasizes the necessity of having a better alignment
of the HR policies with the business strategy of the organisation. According to
Treen (2000), the employers expect the best possible performance from the
employees and having best practices will support in fulfilling such
expectations of the organisation. The best practices enhance the skills of the
existing employees of the organisation and also it supports in recruiting
highly skilled employees (Mullins, 2005).
As per Kumar (2016), there are several characteristics of best practice including employee development, well planned recruitment and selection process and team building. Further Kumar emphasised that the HR practices support in shaping the competencies of the human resource of the organisation and turning them towards creating competitive advantage. The best practice and best fit lead to employee motivation and commitment while achieving competitive advantage where it is essential on monitoring the behaviour of the employees in the process of achieving the competitive strategy (Hsieh, 2011).
The training and development as a best practice provides
the employees the required skills and competencies that need to achieve the
goals of the individuals and the corporate (Johnson, 2000). The organisation
should not consider only on operating and development activities of the
organisation but also need to organise programs on training and developments
for the sake of the employees where this will ultimately enhance
the performance of the company (Enz and Siguaw, 2000). Performance appraisal is
vital in enhancing the performance of both employees and the organisation where
soft skills, ethics, leadership, team work ability and competencies need to
consider in appraising an employee (Messmer, 2004). According to Luthans and
Peterson (2003), the HR practices under best practice model support in creating
a better communication system within the organisation which ensure the smooth
flow of the operations of the company.
According
to Johnson (2000), there are some other benefits associated with best practice
and best fit model namely,
- Calibration.
- Act as a tool of motivating employees towards the change.
- Act as a guide to set directions.
- Support in effective team building and achieving higher productivity among them.
- Support in achieving high commitment of the management.
- Leads for better company performance through effectiveness and efficiency.
According to Redman and Wilkinson (2009), regardless the
nature of the organization and its industry, the best practice model that uses
various best HR practices gives the best organizational performance and outcome
to the company. The best fit model is more credible and easy to implement
within the organization as well as it gives better strategic advantage in
dealing with contingencies (Redman and Wilkinson, 2009). According to Beardwell
and Claydon (2007), in order to gain high organizational performances, the
employees need to be aligned according to the best fit aspects under the
strategic Human Resource Management. However the contribution of the best
practices and best fit towards the effective and efficient performances of the organization
will be affected by micro and macro environmental factors (Beardwell and
Claydon, 2007). As per Purcell (1999), there should be a proper link in
between the best practices and best fit models and the strategy of the organisation. The strong link will enhance the competencies of
the employees and will direct them towards achieving the goals and objectives
of the organization (Purcell, 1999). According to Armstrong (2006), the best
practice and best fit models support in enhancing the performances of the
employees that will ultimately lead in achieving the goals and objectives of
the organisation in an effective and efficient manner. It is the responsibility
of the management to make the HR practices to
fit with the organizational strategy (Armstrong, 2006).
fit with the organizational strategy (Armstrong, 2006).
List
of References
Beardwell, J. and Claydon, T (2007), Human Resource Management, A Contemporary Approach, Harlow: Pearson Education Limited.
Enz, C. A., & Siguaw, J. A. (2000), Best practices in human resources [Electronic version], Cornell Hotel and Restaurant Administration Quarterly, 41(1), 48-61
Hsieh, Y. H. (2011). Strategic fit among business competitive strategy, human resource strategy, and reward system. Academy of strategic management 10(2), 11-32
Johnson, E. (2000). The practice of Human Resources Management in new Zealand: Strategy and Best Practice? Asia pacific Journal of Human Resources, 69
Kumar, M. (2016), HR Analytics: Not Merely Intuitive? Human Capital, 19(11), 44-50.
Messmer, M. (2004), "Closing the communication gap", Handbook of Business Strategy, Vol. 5 No. 1, pp. 87-92
Mullins, L. J. (2005). Management and Organizational Behaviour, London: FT Pitman.
Peterson, S.J. and Luthans, F. (2003) the Positive Impact and Development of Hopeful Leaders. Leadership & Organization Development Journal, 24, 26-31.
Purcell, J. (1999), Best Practice and best fit, Human Resource Management Journal, Vol 09, No 03: University of Bath, UK
Redman, T. and Wilkinson, A (2009), Contemporary Human Resource Management: Text and Cases, Prentice Hall-Financial Times, Third Edition
Treen, D. (2000), Strategic Human Resources, Ivey Business Journal, 64(3): 63-67.
Shahzadi et al (2014) establishes a positive link between employee motivation and employee performance, where intrinsic rewards significantly affect levels of employee motivation.
ReplyDeleteThank you for your valuable comment. Yes, if there is highly motivated employees, the performance will be high that will directly support in enhancing the overall performance of the organization
DeleteAgree to above points Yohan. Further, models of best practice imply a close connection between HR practices and organizational performance and are often linked to high commitment management (Paauwe & Boselie 2003).
ReplyDeleteThank you Anjula, yes in order to take the maximum benefit of those models there must be a proper link in between the HR practices and the organizational performances and at the same time the management of the company must be competent and vigilant in grabbing the available benefits Hsieh (2011).
DeleteHi Yohan,The internal context – nature of the production system, could create restrictions on the successful design of certain HR practices (e.g., teamwork, performance-related pay),The external context, such as legislation and trade union influence, could have a direct impact on the optimal design of HRM. So the whole debate over universalistic best practices and best-fit practices is simply two sides of the same coin and both are important to investigate the relation between HRM and Results (Paauwe and Boselie,2005).
ReplyDeleteBoxall and Purcell (2003) argue that both streams –best practice and best fit –might be right each in their own way. Some basic principles like employee development, employee involvement and high rewards are universally successful, but the actual design of the HR practice depends to some degree on unique organizational contexts. The internal context -for example, the nature of the production system (e.g., assembly line) -mightcreate restrictions with respect to the successful design of some HR practices (e.g., teamwork, performance related pay), but also the external context -for example, the legislation and trade union influence -might have a direct impact on the optimal HRM design. So the whole debate about universalistic best practices versus best-fit practices actually represents two sides of the same coin and both are relevant in exploring the linkage between HRM and Performance. (Paauwe J, Boselie J.P, 2005).
ReplyDelete