Best fit and Best Practice
Maximizing profitability is the main objective of an organization, when recruiting staff to an organization (Morris, 2005), they are not aware of the working environment, the newbies are given task to practice in order to get familiar with their work (Marchington, 2002).
While
new employees learn work they should learn their work properly or else, bad
practice may lead them to rework continuously.
This would cause loss of time, materials, and other valuable resources (Marchington, 2002). The newly joined
staff members should be given proper guidance and circulars to follow when they
are doing their work (Allen, 2006).
Best
practice can be used to inform decisions on what practices are most likely to
fit the needs of the organization, best fit and best practice approaches of the
HR-performance relationship are not necessarily mutually exclusive (Armstrong, 2006).
HRM
practices can guide an employee to face any kind of situation and enhance the
organizational performance (Armstrong,
2006). It has was revealed that due to bad practice, the organization may
lose valuable business at the end of the day (Allen, 2006).
Increased
competition, rapid changes in technology, fast growth in market globalization
and other factors, staff of an organization should have an adequate practice in
their related field to meet these challenges (Allen, 2006).
According
to Figure 1.0 on ‘AMO’ rubric: performance is seen as a function of employee
ability (A), motivation (M) and opportunity (O).
Organizations
should adopt best practice under which are solving problems joining as a Team,
implement enhanced communication skills with co-workers, employment security,
flexibility in job delegation, training
workers in versatile jobs and incentive pays according to their performance. These may lead to high and efficient
productivity (Ichniowski, 1994).
Work
practices effect productivity of the firms, which are profit sharing,
attractive wages and incentive payments according to the performance of the employee
(Ichniowski, 1994).
In
an organization there are two types of perspective controls. One is ‘best fit’
which is connected with the rewarding system which should be in accordance with
the firm’s incentive system, in order to achieve the competitive challenges (Morris, 2005). “Best Practice” which is involves a bundle of
HR policies and best fit connected with reward system which creates extremely
motivated, and dedicated employees are assets to an organization’s to face
competitive environment (Morris, 2005).
When
the rewarding system is greatly connected with ‘best fit’ and ‘best practice’,
this can lead the organization to be more actively participate in the
competitive environment and achieve goals without any constraints (Morris, 2005). The idea of HR
practices has a very high possibility to improve employee’s positive attitude
towards high level of productivity and quality customer service and reduce
excuses towards to be present to work without fail (Marchington, 2002). Table 1.0 shows the differences between Best
practice and best fit.
Table 1.0, Differences between Best
Practice and Best Bit
|
Best Practice |
Best Fit |
|
Best practice proponents state a bundle of HR Policies
which include reward system. |
Best fit advocates believe firm’s reward system should be
aligned to organization strategy. |
|
The set of HR practices introduced lead to high motivation
and better employee commitment. |
Best fit HRM strategy results in achieving competitive
advantage. |
Therefore,
the organization will be productive to strive for fit-or alignment and to adopt
best practices. The fit approach will be
more appropriate than best practice approach in order to meet the challenges
externally and internally. The main idea of fit approach is “survival of the
fittest” (Kraaijenbrink, 2019).
The financial organization in which I am working, school
leavers are recruited under the category of Interns and they are trained,
specialized and molded to do any kind of financial related task at their early
stages. The interns of our organizations
are well organized and complete their tasks within the stipulated time frame.
The interns have been given record books in order to record
their day to day activities, such as how many customers they have communicated
with, how many business leads they have canvassed and how many leads have been converted
in to successful business. The best fit
approach play a major role in their activities and guide them to actively
participate in their daily job.
Our organization, in order to encourage the Intern staff
they have been given special pointing system according to their
performance. And at the end of their
tenure special recommendations are given or they will be absorbed to the
permanent cadre.
Interns of our organization have been deployed in the front
office in order to get accustomed to the competitive environment and attract
more customers by their dedicated service. Therefore, the bank is following a
best fit strategy with a reward system in terms of organizational strategy to
achieve competitive advantage.
References
Armstrong, M. (2006), A
Handbook of Human Resource Management Practice, Kogan Page Publisher.
Boxall, P. and Purcell, J. (2003) Strategy and human resource management. London, Palgrav
Ichniowski, C., Shaw, K. And Prennushi, G. (1994) "The Effects of human resource management practices on productivity", Working paper, Columbia University
Marchington, M. and
Wilkinson, A. (2002), People Management and Development, London: Chartered
Institute of Personnel and Development.
Gould-Williams
J. and Mohamed R.B. (2010), ‘The International Journal of Human Resource
Management’, Vol. 21, No. 5.
Agreed with your points. This vertically integrated approach the proposition that organizations are going to be more practical if organization adopt a policy of strategic configuration by matching their strategy to one of the perfect practices, where leverage is gained through the close link of HR policies & practices to the business objectives (Reda, 2019).
ReplyDeleteYes, Nivethini Manoharan, according to Harms (2009), Compared to universal effects approaches, or contingency approaches, the configuration approach has several advantages. In addition, the configuration approach explicitly recognizes that there is a significant degree of variation in the population of new ventures.
DeletePaauwe and Boselie (2005) strongly says there is a diversity of
ReplyDeleteviews concerning what HR practices should be incorporated in lists of best practice. For
example, Paauwe and Boselie (2005, p. 69) report that ‘There is not one fixed list of
generally applicable HR practices or systems of practices that define or construct HRM’.
You are absolutely correct Pernalla, People with different lifestyle and difference backgrounds challenge each other more. Diversity creates dissent, and the organization needs that. It would be productive to compare cultural transformation associated with inclusion to other types of transformation to ascertain commonalities, differences and practical discernments (Wilson 2016).
DeleteAgreed Treva, Even the Best practices approach can be suffered on limitations at the launch stage at a organization.as per, Delery, Redman & Wilkinson stated " The best practice approach suffers from a series of limitations. Firstly, when implementing best practice standards organizations run risk of introducing mutually prohibitive combinations like team working and compensation based on individual performance resulting in a deterioration of employee collaboration through overexaggerated competition (Delery 1998 in Redman and Wilkinson 2009). Critics like Milkovich and Newman (2002) argue that best practice HR lacks direct linkages with organizational strategies and is minted by the belief that outstanding high performing human resources will influence strategy. Therefore Best practices and Best fit has to be analyzed before implementing according to the situation of the organization.
ReplyDeleteExactly, Selecting “best fit” candidates who are “high performers” are required to create a motivated and skilled workforce that is committed to our mission and can contribute in a positive way to our daily objectives. In order to select excellent candidates, hiring manager must develop their skills in candidate assessment and interviewing (Bremer 2021).
DeleteAn interesting read Treva. Universally accepted HR best practices (motivating jobs, selective selection, performance management, performance-related pay, systematic training or creation of favourable working conditions), whose application has a positive effect on organizational performance, but their application requires best fit to all external and internal conditions of the organization. Best practices cannot achieve positive effect on organizational performance without best fit (Sikyr, 2018).
ReplyDeleteExactly, best practices refer to those that are applied by the best organizations operating in similar conditions and pursuing similar goals. Using best practices allows implementation of significant changes on an easier, faster and cheaper basis (Sikyr, 2013).
Delete