Best fit & Best Practice Approach - Best fit approach
Best fit & Best Practice Approach
The two nominative models in SHRM are considered as best fit”
and “best practice” approach by considering how organizations make strategic
choices in HRM. Further the HR strategies are heavily shaped by appropriate
contingencies including National, sectoral and organizational factors. Boxall
and Purcell (2000).
Theoretical explanation of Best fit
approach
The best fit approach is described as a
contingency theory. It emphasizes that HR strategies should be matched with the
strategy of the organization in other words HR strategies should be matched
with environment and circumstances of the organization (Armstrong 2006). For an example when new employees are
adapting to an organization’s culture, to a given best fit positions, they have
to adjust according to organizations' needs & requirements without allowing
them to change according to their capabilities.
Armstrong
(2012) explained 3 models that included to the Best fit approach as
o
Life cycle -Explains four stages of development
steps as
o
Startup-growth-maturity
& decline
o Competitive
Strategy -Porter (1985). Explains 3 key areas as advantages of best fit as
o Innovation or niche,
Quality of the output & cost leadership
o Strategic configuration - Explains the advantages when best fit
matched with the strategic
Alignment
Armstrong
(2008). Explained the development of human resource management through a series
of separate steps in parallel to the organization growth or complexity. Boxall, P. and Purcell, J. (2003). have
demonstrated by emphasizing the multiple & different strategies of an
organization in a changing business environment by emphasizing the cause to
numerous challenges in the HR system and criticized that the best fit approach
by stating the need of aligning the Human resource practices to make
alternative treatments for employees without demotivating and showing the consistency
in the corporate culture. Boxall, P. and Purcell,
J. (2003).
Practical convention of Best Fit approach in the modern world
DeBellis2018) stated few main
challenges on employees faced by an organization in the modern world as finding candidates and keeping the
existing employees, hiring expenses and lower employee engagement. For an example Walmart is a famous sample to the Best fit
model. They concern to recruit best employees to fulfill the particular tasks,
further the goals and the management procedures are set by the organization and
selection criteria of Walmart depend on the job position. Confirming the
advantage of this method to the organization they get technological advantage
by using robots to the support lines. In parallel to the automation there is a
huge challenge on existing employees as they have to face difficulties on
leaving the positions & adapting something new at once (Thomson,2017).
Walmart To Replace Workers With Robots
References
- Armstrong, M. (2006) A Handbook of Statergic Human Resource Management Guide to action.3rd ed. London, Kogan Page Limited.
- Armstrong, M. S Tayler (2012) A Handbook of Strategic Human Resource Management practice 13th edition
- Armstrong, M (2008) Armstrong’s Essantial Human Resource Management practice London Philadelphia New Delhi
- Boxall, P. and Purcell, J. (2003) Strategy and human resource management. London, Palgrave
- DeBellis2018) Best fit vs best practice: 3 keys to developing a compelling rewards offering.Insidehr[online].available at <https://www.insidehr.com.au/best-fit-vs-best-practice-3-keys-rewards-offering/.>.[Accessed on 26th September 2019].
- DeBellis2018) Surveying Employee Preferences for Rewards. A Primer Deloitte Development LLC.deloitte[online].available at <https://www2.deloitte.com/content/dam/Deloitte/ca/Documents/audit/ca-audit-abm-scotia-surveying-employee-preferences-for-rewards.pdf.>.[Accessed on 26th September 2019].
- Thompson, A (2017) Walmart’s HRM Recruitment, Selection, Employee Retention. Panmore Institute [Online]. available at <http://panmore.com/walmart-human-resource-management-recruitment-selection-employee-retention.>. [Accessed on 26th September 2019].
- Walmart To Replace Workers With Robots (2019)telesurtv.net/English [Online]. Video. <https://www.youtube.com>. [Accessed on 26th September 2019]
Best Fit and Best Practices are two recognized methods of HR management that “best Fit” argues that when an HR strategy is associated with its business environment and it becomes more efficient when it linked. Evaluate the vertical integration between the organization's business approach and its human resources management policies and practices and explore the close relationship between strategic management and HR management. “Best Practices” schools claim that certain best HR practices will improve organizations. Performance is characterized by improved employee attitudes, decreased desertion and turnover, improved productivity, quality and efficiency. This is why the “best practice” model is also known as the high commitment model(Ferdman and Dane, 2013).
ReplyDeleteBest Fit and Best Practices both strategies having their own advantages.When considering all, Best fit reflects company strategy and values & responsive to employee needs and globally competitive.Best fit model companies are more likely to achieve competitive advantage.Best practice scan be applied universally across all situations, responsive to employee needs.
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ReplyDeleteAgreed, the best practice is also in place to help move the company forward in terms of performance regardless of the organisational structure and better outcome is expected (Redman & Wilkinson, 2009).
ReplyDeleteSure, here i emphasized the Best fit approach separately and Best Practice’ model describes certain good practices that are needed for an organization to bring the output effectively and efficiently and Blog post 'Best Practice approach & Organization adaption to the Best Practice approach' dated 13th October 2019 describes best practice approach with samples.
DeleteHi Anne, I would like to mention that the best fit approach is not without its flaws. For example, there is lack of alignment with employee interests, legal requirements and compliance with social norms (Armstrong, 2006). In addition, Boxall and Purcell (2003) mentions that companies that use this model are subjected to multiple alternating contingencies and would find it challenging if HR would not adapt effectively to the ever changing landscape.
ReplyDeleteYes , Disadvantages are there related to the Best Fit approach.Some huge organizations have been used Best fit approach successfully even best practice successful for popular and successful organizations.Both models provide powerful methodologies for keeping the human resource management processes smooth & productive to organizations.
DeleteEven in best practice approach disadvantages are found. The best way is using the both methodologies.
Hi Anne, I do agree with the post. According 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.
ReplyDeleteArmstrong(2006) explaining that this methodology indicates on the best universal HRM practices fits with any condition or circumstances to bring the best organizational performances. Further Best practices of HR leading organizations reach higher level of growth rate of industry or product (Redman and Wilkinson, 2009). True Sithari team working characteristic is one of the specific feature there.Google & Shell are the best examples to get understand the advantages of Best Practice approach.
DeleteAlong with the comparison of these 2 models, it is important as an organization to follow a method which is more viable for it's sustainable development. Croonen, Runhagen and Wollan (2015) explains that small and medium entrepreneurs should embrace the best fit model where as the large entrepreneurs may approach the best practice model.
ReplyDeleteThanks Shan for sharing another valuable fact.When it comes to the global context the example taken here for the best fit is Walmart,huge company & for the best practice Google.Best practice is relational.Best fit comes after perfect selection process.To obtain the perfect performances it seems that most of the organizations use both practices together.
DeleteHi Anne, agree with you and below justify your post.
ReplyDeleteAdvocates of best fit model affirm that if human resource policies of any organization align with business strategy, high performing work practice will be achieved (Armstrong 2012).