Tuesday, September 10, 2019

Areas to be Considered in Improving Best Practice and Best Fit Model

It is the responsibility of the management of the organisation to gain from best practice and best fit model in the process of driving the company towards achieving the organisational goals and objectives (Armstrong, 2006). As per Wiriadinata (2011) achieving competitive advantage through reducing cost might reduce the employee interest and therefore this need to be rectified with immediate effect. According to Abraham et al (2001), there is a positive relationship in between the organisational contribution towards employee welfare and employee willingness to follow HR best practices. If the practices are supportive, the employees will embrace them and will engage in the organisational operations enthusiastically (Abraham et al, 2001). 

According to Boxall and Purcell (2003), the organisational strategy plays a major role in motivating the employees towards accepting best practices through expressing the expected levels of performances of the employees. The employee is the precious resource within the organisation and to achieve the goals and objectives within the dynamic and uncertain business world, the human resource must handle well through adapting perfect best practices and best fit approaches (Workline et al, 2017).

It is a clear fact that most of the companies are now approaching for best practice and best fit models despite the drawbacks attached to them. When it comes to the Sri Lankan context, these practices are popular in Garment sector in the country. The garment manufacturers highly believe in the benefits of applying the best practice and best fit models for the success of the corporate since most of the companies running within the sector are depending on the Human Resource. In such context, much more attention to be given for attracting and retaining appropriate employees within the business. 

With the mission of “inspire innovation and sustainability and build talent and strategic relationships”, MAS holdings, one of the leading garment manufacturers in Sri Lanka is currently enjoying the benefits of utilizing the best practice and best fit models despites its drawbacks. The organisation is highly believed on the value of the employees as core strength to the business operations of the company. At MAS, the employees are highly valued and facilitated with various benefits. Apart from the main remuneration packages, the employees of the corporate are enjoying many benefits including health aids, meal and transport facilities. Further to them, the company is providing a healthy and calm working environment with air condition facilities since the organisation has identified the essentiality of having peaceful mind to carry out their day to day operations. MAS rely on these HR best practices not only being industry practices but also it straight away direct the Human Resource towards achieving the ultimate goal of the company.

The Human Resource practices and strategies need to be aligned with dynamic business environmental factors and the performance procedures and in such context, the Human Resource practices and strategies need to focus on the organisation as well as the employees (Armstrong, 2006). There is no any universally accepted best practice and it may vary with the organisational strategy and the goals. In such circumstance, it is the responsibility of the management of the organisation to adopt the most appropriate best Human Resource practice and best fit model in the process of achieving the goals and objectives in a proper manner (Armstrong, 2006). When it comes to the garment industry, the business environment is highly volatile and uncertain due to various external factors and in order to retain at the market, much more attention needs to be given for aligning the best used practices with the organisational strategy. In such circumstance, the management of MAS holdings has a major role to be performed well. The management needs to focus on their precious human resource and influences them through the applied practices in a friendly manner.

As per Redman and Wilkinson (2009) the best practices support the thought of power of the organisation and best fit model emphasizes on the alignment of Human Resource strategies and the organisational strategy where there are advantages and disadvantages in applying the best practice approach and best fit model to an organisation (Boxall and Purcell,2003). The advantages enhance the value of the organisation and at the same time the disadvantages will hinder the strong relationship in between the employee and the organisation. In such circumstance, it is the responsibility of the management to take the advantages and minimize the disadvantages and make the organisational strategies in line with the HR strategies of the organisation.

Talking about how the garment industry applies the Best Fit model, as a leading garment manufacturer in Sri Lanka, MAS Holdings are currently spreading their operations worldwide and not only to expand its business but also to enjoy the benefits of competitive advantages. MAS Holdings has moved a part of its factories to Bangladesh mainly due to the lower labour cost and MAS have appointed Sri Lankan people for the top level positions of such factories by offering higher remunerations and other bundle of benefits. This may be a better solution for enjoying the maximum benefits of the competitive advantage but being extreme on best fit may create other issues mainly in terms of adapting to foreign business environments. MAS can expand the business locally and attract the potential suitable candidates and train and development them according to organisational strategies. Not by the strategy of cost reduction, but by enhancing the efficiency and the effectiveness of the employees, MAS can go up the ladder towards the triumph. 

To ensure the job satisfaction, the organisation should motivate their employees and in such context, the employer can use the best practice and best fit approach appropriately while ensuring the proper alignment in between the organisational strategy and the HR practices. According to Armstrong (2006), the value of best practice and best fit approach depend on the ability of the organisation on demonstrating the strategic significance of Human Resource Management and therefore in order to get the maximum benefit through the application of best practice and best fit approach, the organisational strategy must be strong, flexible and ensure on working efficiently and effectively in a dynamic and uncertain business environment (Hsieh, 2011). If there is no any best fit to the company, it is essential on providing them adequate training facilities in making them competent to the business operations of the organisation. 

List of References 

Abraham, S.E, Karns, L.A and Mena, M.A (2001), Managerial competencies and the managerial performance appraisal process, J. Management Development, 20, 10 (2001), pp. 842-852
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
Charles, G.R. (2001), Strategic Human Resource Management: A General Managerial Approach, 2/E, Pearson Education India
Hsieh, Y. H. (2011). Strategic fit among business competitive strategy, human resource strategy, and reward system. Academy of strategic management 10(2), 11-32
Redman, T. and Wilkinson, A. (2009) Contemporary Human Resource Management: Text and Cases, Prentice Hall-Financial Times, Third Edition
Wiriadinata, M. (2011), “Best Practice” and the “Best Fit”. Are the approaches substitutes or complement? Why?
Workline, M.C. Dutton, J.E. & Hardin, A.E., (2017), Forming Stronger Bonds with People at Work. Emotional Intelligence, Harvard Business Review.



No comments:

Post a Comment

Introduction

Human Resource Management is one of the crucial factors to be considered in the process of driving the organisation towards the succes...