BEST PRACTICE v. BEST FIT

How do we know what is an appropriate HR model for a firm?

Best Practice Model
! Argument: all firms will see performance improvement if best practice implemented (see empirical evidence)
! Method: identify best practice, give HR a high profile, get top level commitment, sell it, do it, measure it, reward champions
! Advantage: much agreement / tradition on basic best practice. Also recognition of ëbadí practice. Established rules of thumb for selection; training; appraisal methods. No need to re-invent. Itís out there.
! Disadvantage: difficulty arises when we go beyond these straightforward practices. There is great diversity of ëbest practiceí which moves away from uniformity. Pfeffer(1994 listed 16 practices for ëcompetitive advantage through peopleí. Danger of becoming an end in itself at the expense of company goals / interests. Can be conflict between benefit to company & benefit to worker ie reengineering & downsizing. Employees may lose their voice. May not be appropriate in all situations or even in sections of same business.

High Performing Work Systems (HPWS)
High Involvement
! Ability ñ enhance employee ability
& knowledge through good recruitment
& training
! Motivation ñ motivate desired behaviours through strong incentives
! Opportunity ñ encourage ideas & contribution from motivated & better trained workers
Characteristics of Best Practice Model:
Work teams~ flexibility
2-way information ~ comms
Care with recruitment ~selection
Traits / Behaviours ~ not skills
Fair appraisal ~ reward
Involved in decision making
Emphasis @ training ~ learning
Individual development

Empirical Evidence that HRM is associated with performance
- Guest - Future of Work (2001) ìHigh commitment management practices are associated with better economic performance, better workplace well-being and a