A critical evaluation of the" best practice" and the " best fit" approach in HRM
- A Lincoln subsequently Electric example analysis -
1 . Introduction
The discussion among promoters of best practice and best fit approaches provides sparked wide-spread controversy in the human resource management (HRM) area. The subject has received much academic attention as it not only address a assumptive controversy although also offers a high level of practical managerial significance. The essay gets the aim to examine best practice and best suit approaches in HRM of any multinational business. The reader receives insight into Lincoln Electric's firm through a case-study analysis of practical HOURS approaches portion as a basis for expanding practical bureaucratic implications within the last part of the conventional paper.
2 . Important evaluation of " ideal practice" and " ideal fit" practices in HRM
2 . 1 Best practice approach
The best practice strategy claims that particular bundles of HR actions exist which will universally support companies in reaching a competitive advantage regardless of organizational placing or market (Redman and Wilkinson 2009). Best practice models indicate a close connection between HOURS practices and organizational performance and are frequently associated with excessive commitment supervision (Paauwe & Boselie 2003). Empirical analysis in the best-practice field shows similar sets of HR rules which are especially suitable for making the most of performance irrespective of market and product tactics (Peffer 98, Guest 2000). Best practice bundles of activities happen to be characterized because mutually appropriate HR activities which move high levels of workforce proficiency, encourage determination and present a workdesign boosting staff commitment (Maloney and Morris 2005). Based on concepts from expectancy theory (Vroom 1964, Lawler 1971) best practice HR will mean higher amounts of quality, output and low rates of absenteeism and wastage (Guest 2000).
The best practice approach is experiencing a series of limits. Firstly, when ever implementing finest practice requirements organizations operate risk of launching mutually prohibitive combinations like team functioning and settlement based on specific performance creating a deterioration of employee cooperation through overexaggerated competition (Delery 1998 in Redman and Wilkinson 2009). Secondly, substantial commitment managing systems are generally a complex undertaking requiring huge inputs of planning and top level management commitment. Thirdly, authorities like Milkovich and Newman (2002) argue that best practice HR lacks direct cordons with company strategies and it is minted by belief that outstanding high performing recruiting will effect strategy. By causing HR plan precede corporate strategy an organization risks recommending standardized units of " one size fits all" best practice approaches that will not support the particular requirements of employees and be bad for overall strategic objectives (Maloney and Morris 2005). Fourthly, discussions with regards to the appropriate selection of best practice measures caused by an too little research method and assumptive definition exist (Marchington and Grugulis 2150 in Redman and Wilkinson 2009).
2 . 2 Best suit approach
The best-fit style is considered like a variant by precedent models of Harvard, Michigan and York and is named " complementing model" for HRM (Sparrow and Hiltrop 1994). It can be based on expanding HRM policies according to business approach. Strategy entails planning foreseeable future activities, performances objectives, and policies toward reaching the corporate and business aims. HRM strategy ought to be designed and applied to support the presented corporate approach (Lawler 1995). The " best-fit" procedure questions the universality assumption of the best-practice perspective. It emphasizes backup fit between HR activities and the company stage of development, a great organization's inner structures and its particular...