According to Armstrong (2006), the best fit concept concerns on
the vertical integration or the alignment in between the business process and
the HR strategies of the organisation. Further he emphasised that this model
explores the relationship between the strategic management and Human Resource
Management while considering the influence and the vertical integration process. As per the
studies of Beardwell and Claydon (2007), this
vertical integration which strengthens the close link of HR practices and
policies is considered as the key element of the strategic Human Resource
Management.
According to the
below video shows how human resources need to be planned according to the
strategic objectives of the organisation and how the best fit approach needs to
be applied for the benefit of the organisation.
Video
I-Application of Best Fit Model
(Source :Kenton, 2019)
Use of SHRM practices supports in achieving the goals and
objectives of the organisation in a changing environment properly. In order to
verify the best fit to the organisation, several attitudes tests can be
introduced to the interview processes where most of the companies use the
Myers-Briggs Type indicator for ensuring the Best Fit to the organisation
(Kuipers et al, 2009). Although most of the companies use this Myers-Briggs
Type indicator to access the best fit, according to Pittenger (2017), this
method is not suitable for every situation since this can be misinterpreted
when there are categorisations under personality types including reclusive,
realising preference, preference for thoughts and preference for sentiments.
According to Armstrong (2006), the best fit concept
concerns on the vertical integration or the alignment in between the business
process and the HR strategies of the organisation. Further he emphasised that
this model explores the relationship between the strategic management and Human
Resource Management while considering the influence and the vertical
integration process. As per the
studies of Beardwell and Claydon (2007), this vertical integration which strengthens the close link of HR
practices and policies is considered as the key element of the strategic Human
Resource Management.
In order to apply the best fit model to an
organisation, it is vital to have an understanding on the internal and external
factors that impact on the operations of the company (Boxall and Purcell,
2003). As per Boxall and Purcell (2003), if a company fails to analyse the
internal and external environment, the application of best fit approach will be unsuccessful.
List of References
Armstrong, M (2006), a
Handbook of Human Resource Management Practice, Kogan Page Publishers
Beardwell,
J. and Claydon, Tim. (2007), Human Resource Management, A Contemporary
Approach, Harlow: Pearson Education Limited.
Boxall, J and Purcell, P (2003), Strategy and Human Resource Management, Industrial and labour
relations review
Kenton,
W (2019), Human Resource Planning, Business Essentials, Rizzoli International
Publications, the Rockefeller Foundation
Best fit model means that there is no universal way of doing things as what might work well in one place may be unsuccessful in another place (Foluso, 2019). Through vertical integration, control can be achieved through human resources practices and process is taken as the key element (Jackson and Schuler 1995).
ReplyDelete
DeleteYes Chandran. I agree that what might work well in one place may be unsuccessful in another place (Foluso, 2019). It is the responsibility of the management to manage the employees well and direct them towards achieving organizational common goal.
Agreed.As defined by UKEssays (2018), The “Best Fit” perspective endures that when an HR strategy is associated with its business environment, it becomes more effective. It investigates the close relationship within strategic management and human resource management through assessing the vertical integration between the organization's business strategy and its human resources management strategies and practices.
ReplyDeleteDear Sahan, Thank you for your comments. Yes, the best fit concept concerns on the vertical integration or the alignment in between the business process and the HR strategies of the organization (Armstrong, 2006). Apart from that there should be have a clear idea on the relevant internal and external factors before implementing the best fit approach for the operations of the organization.
DeleteAlso Armstrong (2014) stated there are three models in best fit approach, 1)Life Cycle, 2)Competitive strategy and 3)Strategic configuration.however according to the researches and findings organizations will be more effective if they adopt a policy of strategic configuration.
ReplyDeleteDear Oshantha, thank you for adding additional information. Yes, as per Armstrong (2014), the best fit approach consists with three models namely, Life Cycle, Competitive Strategy and Strategic Configuration.
DeleteWith reference to best fit viewpoint, Lawler (2008) raised the argument that most performance that are subject to pay systems and reward employees for skill and knowledge development indirectly by rewarding the performance that results from the skill.
ReplyDeleteDear Radchika, thank you for your comments and adding additional information. Yes, the employees are highly sensitive for pay and rewards systems that should be based on skill and knowledge development
DeleteThis comment has been removed by the author.
ReplyDeleteThe HR strategies should go in line with the organisation's structure for it to fit best in order to succeed. The needs of both the organisation and employees should be looked into by the HR before fitting any (Armstrong, 2006)
ReplyDeleteThank you Shakir, there should be a proper relationship in between the organizational structure and the HR strategies where when establishing HR strategies it is essential on considering the organizational goals, strategies and the structure of the organization (Armstrong, 2006).
DeleteAgreed.The characteristics of the Best Fit model different from the best practice model. For example, when a new employee adapts to the culture of the organization they must adapt to the needs of the organization (Robertson & Smith, 2001).
ReplyDeleteHi Sankalpa, I agree that the characteristics of both models are different from each other but on the other hand, both Best HR practices and Best Fit support in creating a strong relationship in between the Employees and the business performances while these approaches enhance the competencies of the employees subject to often changes.
DeleteAgree with your blog also adding a point to it, According to Bakshi et al., (2014) the organization size matters when adapting best fit whereas, a larger organization with different levels of hierarchy will face difficulty when adapting to best fit HR Policy whereas, more resources will be required to invest on recruitment or rewarding.
ReplyDeleteThat is why I have mentioned that it is the responsibility of the management of the organisation to get them fit to the company while enhancing the strengths and minimize the weaknesses for the success and the sustainable development of the organisation (Charles, 2001). Human resource is an asset and not a cost. So it is better to invest on HRM practices.
DeleteI Agree with your points and It should be noted, however, that focusing on recruiting talented employees often results in the lack of interest in the already employed people, causing frustration and lack of motivation (Athey, 2004, p.36).
ReplyDeleteIn this case, the misunderstood fight for talents can hinder internal learning and knowledge transfer in the organization, creating an attitude of arrogance instead of development orientation (Pfeffer, 2001, p.22).
The rational direction of HPWS systems’ improvement is the use of such talent management programs that would eliminate the above-mentioned negative effects. The effects should be monitored (e.g., employee satisfaction surveys) and minimized through open communication policy and the use of professional development opportunities outside programs
Yes Chamari, I do agree. In such context, the management needs to be more vigilant in making correct decisions whether to externally recruit or internally upgrade subject to the required grounds.
DeleteAll are valid points. Best fit models tend to be static and the processes of change are not taken into account. They neglect the fact that institutional forces shape HRM— employers cannot be assumed to be free agents capable of making independent decisions. Best fit is often said to be better than best practice, but with reservations this statement can only be accepted (Armstrong,2010).
ReplyDeleteThank you for your compliment. Management needs to shape them according to the organisational strategy subject to the changes happen within the dynamic business environment.
DeleteHi Yohan,HR strategy becomes more efficient when connected / adjusted to the company's surrounding context or environment. (1) External fit: fit is related to the overall company's competitive strategy. Schuler & Jackson (1987) established the connection between competitive advantage, employee attitudes and HR practices.(2) Internal fit: HR policies and procedures need to be consistent. Evite policies that work in opposite directions. To encourage teamwork and then to reward individual performance. Make sure that practices are proportional to the development/resource stage of the organization.
ReplyDeleteYes Indika, we cannot ignore the internal as well as external factors that will directly or indirectly affect the organizational processes. Both factors need to be carefully assessed and make them according to the organizational goals and objectives in a proper manner. Gradually this will lead in smoothing the way to the success and a sustainable development.
DeleteHi Yohan, Wood (1999) makes a distinction between four different ‘fits’: internal fit, organizational fit, strategic fit and environmental fit. But what it seems to be missing is the fit between how the employee perceives HR, practices and whether that perception aligns with the values and goals of the organization. This problem was also raised in regards to best practice, is it best practice for the organization or for employee? In both cases the approach seems to suffer from the employee perspective.
ReplyDeleteDear Sithari, very valid comment and appreciate your ideas. Yes indeed, there must be a proper connection or a fit in between the HR practices and the values and goals of the organization or else we cannot take the benefit of those approaches for the success of the organisation. If there is no proper relationship, while the employee directly suffers, gradually the employer will be indirectly suffered.
DeleteThe best practice approach towards HRM can be seen as a reaction to failures by finding empirical evidence for a ‘best fit’ approach and one that stresses the universal importance of a number of HRM practices. The contingency or ‘best fit’ school includes a range of models that advocate fitting HR strategy to its surrounding context. Examples of these are the connecting of HRM strategies to three basic types of organizational strategies by Miles and Snow (1984), namely: defenders, prospectors and analysers. Other examples are the framework by Schuler and Jackson (1987), in which they link HR practices and outcomes with ‘generic firm strategies’ as defined by Porter (1980) and the recent more evolutionary ‘best fit’ models
ReplyDeleteDear Namal, thank you for adding more to my blog. It will surely enhance the value of the blog report. Yes, while considering those factors, it is vital to understand the need and the value of a practice as a best practice in order to ensure that it will be the most appropriate strategy and the fit to the organization (Charles, 2001).
DeleteDue to the complexity of the contemporary business world, best fit practice have emerged s a vital tool in SHRM. Armstrong and Brown (2019) emphasise that here the best practice methods can be vulnerable given various economical situations and best fit is the strategy which will assist the organiations to sustain.
ReplyDeleteYes Shan, due to various environmental factors, mainly in terms of technology and the economy, the complexity and the competition of the businesses are getting increased and in such context, much more attention needs to be given for the proper application of such models for the benefit of both the employer and the employee.
DeleteAdding up to same, Wood (1999) makes a distinction between four different ‘fits’: internal fit, organizational fit, strategic fit and environmental fit. But what it seems to be missing is the fit between how the employee perceives HR, practices and whether that perception aligns with the values and goals of the organization.
ReplyDeleteHi Sheron, I have replied to the same at the above Sithari's comment.
DeleteAccording to Armstrong (2014) best fit will be more effective if perfectly adopt to the policy of strategic configuration.For that adaption employees should be found that matched with the organization strategy.Selection of employees & rewarding them takes a huge part when considering this adaption.
ReplyDeleteAgree with you Yohan,
ReplyDeleteAccording to Porter (1980), HR policies work best when they are adopted to the competitive strategy and are more likely to be source of competitive advantage.