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Strategic Human Resource Management Practices

Human Resource Management

“Best Fit” and “Best Practices”

Introduction

The objectives of business are when accomplished for the human resource practices, the system are based on organizational needs, is known as the strategic human management. It is an approach that how organizational goals could be achieved, by the mean of people and by the mean of human resource strategies. The policies and practices also integrated, in this sense, the people of organization as strategic resource, for the achievement of the organizational goals, and for the competitive advantages work hard. SHRM is a process of joint activities, which involve the line managers, and other human resources to solve the problems.

The “best fit” and “best practices” approach are the strategies that are significant for the fulfillment of the goals, in best-fit practices there are the strategies resulting in the competitive advantages however; best practices approach is introduce to lead the human resource practices, in which employees are highly motivated to perform better. Strategy human resources management is being the best practice, in term of guidance, HR practices policies and processes of business strategies, can lead the organization towards, achievement of better performance and success. The strategies regarding best-fit and best practices can lead the organization towards sustaining the competitive advantages (Shapiro, Hoque, & Kessler, 2013). In any organization, there is the realization of one vision, which is known as a HR department, however, it is also includes the strategy formulation and managerial system that focus on the needs and performance of the company workforce, so that there could be effectiveness in the Human resource principles. However, HRM deals with the management of the people.

Strategic Human Resource Management Practices

Importance

HR department is important in any organization because company workforce is managed in the effective way, thus, they are evaluated and given the incentives based on the performance.

Full And Detailed Process

The process of HRM includes the planning, selecting, evaluation, recruitment, hiring, training, promotion, training and development etc. The process are the motivation for the employees as the managers in this way can make the management effective and can make the workforce able to do work with the efficiency.

Forces That Influences Its Process

There are various HR processes, as it is the company’s ability to deal with various aspects; however, the factors that can influence the process of HRM are compensation, employee relations, legislation etc. Compensation can motivate the employees’ performance, better relation can keep the HR process effective and legislations could effectively deal with the different areas in the association.

Principles Of Strategic HRM

The human capital for any organization, play an important role, to get success in a strategic role, the major sources is competitive advantage, and HR strategies should be integrated with the business plans. The strategic human resource management theory, is successful when organization believe and have major focus is on the strategic HRM, the firm need to make plans and then application is most essential for the achievement. The HR specialist need to focus on the strategies, with the mindset and mutual support, the HR practices, can do analysis of the organizational and planning could be implemented. If specialists are concerned about the everyday performance and value to put the strategies into practices then business goals can be ensured. There is critical issue in gaining the success, if the assessment of the organizational need is not done properly, and there are problems while mirroring the past and current conditions, the mean of developing integrated HR strategies, the human resource dimensions, to achieve the purposes needs to be evident (Boxall & Purcell, 2015).

The process of developing the strategies, within the organization, should be understood and should be under the consideration of strategic HRM, there is linkage to ensure the integration of human resources considerations, with the decision-making processes of organization. For the strategic HRM, the organization has the responsibility, to manage the human resource management; there should be established accountability for this purpose, if the business or organization wants to get success, need to take the initiatives that include the identification of the economic, technological, social and political environment.

The Aims Of Strategic HRM

The fundamental aim of strategic management, is to generate the strategic capability, by ensuring the organization; if the organization have the skilled, motivated, capable, experienced and engaged staff, in order to achieve the competitive advantages, the staff or employees need to be trained, and they should have the skills, to attain the strategic goals. The strategic goals are always, resource-based, however, to create firm, more intellectual, flexible and intelligent than the competitors is necessary. The more talented staff you have the more successful organization will be, for the adaptation of the strategic HRM, the management need to fully integrated, with the strategies, and staff need to be efficient. The Hr policies and the practices should be adjusted, accepted by the management of the organization, line manager and employees, need to focus on the everyday work. The strategic HRM is perceive to be understood, based on developing and implementing, there are underlying concepts about achieving the competitive advantages, through HM; every organization need or aim to realize the necessary responsibility (Waiganjo & Awino, 2012).

When the organization aims of strategic HRM, the necessary issues should be discussed, the organizational interest should be known, regarding the interest of all stakeholders, owners, management, staff etc. There should be emphasis on the human-relation aspect, of people management and organization or management requires stressing on continuous development. There is need of communication, quality of work, work-life balance, security in concerning to maintain the strategic HRM. Resources should be ensure, and require to manage properly or effectively for the positive outcomes (Clinton & Guest, 2013).

Strategic Fit And Strategic Responsibility

There are three basic concepts of strategic HRM, namely, the resource based view, the strategic fit and the flexibility fit. The range of resources in the organization need to be focused, in the field of strategic HRM, the firm should follow the sustain competitive advantages that are the resources must add value to the firm, the development programs should be enhanced by the investment, and the strategies must support the achievement, of the business’s strategic goals. Strategic fit is described as the coordination of human resources with the best suitable strategies. There are range of skills and variety of behaviors scripts, which mangers should apply to encourage the employees, in different situations. The predictable environment, need to achieve the flexibility, by understand the human behaviors, strategic fit implies a fixed relationship, between the HR and business strategy, the HR policies must be consistent, in order to achieve the strategic HRM.

The strategic HRM practices are better to adopt in all organizations, there are universal relationships between the individual “best practices” and firm performance. There are different perspectives that emphasis on the human resource pattern of practices, the terms that are commonly used in adopting the strategic HRM are ‘best-practices’ and ‘best-fit’ approaches, they are followed by the set of practices, human resource system is based on building these approaches. These are the best practices of the HRM strategies that are used to adopt and improve business, both internal and external fit can be achieved in this way. The organizational performance becomes clear and gaps are identified, implementation of strategic HRM takes place in an organization (Boxall & Purcell, 2015).

The Best-Practice Approach

The best practice approach is based on the assumptions, that there is a set of best HRM practices, to adopt these practices, organization need to focus on the organizational current performance; it is the universal sense, that best-practice approach is the best to deal in any situation and to get the success. There are lists of best practices, which an organization could apply, to retain and train its employees, it provides the employment security, the employees feel secure in this approach and their performance could be effective in this way. Selective hiring, there is a careful selection in identifying the employees who are best suitable and have potential to make contribution, towards their organization. Self-managed team, the team should have ability to manage the skills and knowledge and should change themselves with the changing environment. In the best practices there are also strategy about the high compensation; that compensation, incentives could be given is performance of employee is better. There is proper training that is provided, to a skilled and motivated workforce; the skilled employees are trained so they can more effectively participate towards organizational goals. Reduction of the status differentials, there are equality within the organizational culture, so that every individual feel himself important asset for its organization. Information among the employees, on different posts, should be shared, so the good ideas could generate and productivity could be increased (Theriou & Chatzoglou, 2014).

There is reorganization of the training, that why and how employees, could be trained, there is careful selection of the training program or ongoing activities, in the best practice approach. Job is designed to ensure the, flexibility, commitment and motivation within the organization so the employees can easily communicate, and able to use their talent and knowledge. There are the ownership programs for the employees, so they could be aware of the financial situation of the organization. There is the win-win scenario for the employees, and the organization, training and development of the employees have the competitive advantages, there is improvement of the self-confidence within the employees. Employees will be highly motivated, through performance appraisal, as the motivational tool, employees will be dedicated towards work performance, if they know evaluation is there. This approach is adopted by many multinational companies, and they are getting benefits by it. The teamwork ability and the competency could be increased, by appraising an employee. The organization will be work smoothly, as there are advantages associated with the best practices, an effective team will be self-aware, and self-managed through the strategies of best practices (Wright, Guest, & Paauwe, 2015).

In best practice model, there are various strategic HR practices, which are related to the organizational performance, there is also reward system, which is given after the evaluation of the appraisal system. Employee voice is very important for the organization if employees face any problem within the environment, they can easily share, and employees are given freedom, in the best practices characteristics, high commitment observations are compulsory to be familiar.

There will be positive outcomes within the organization, if best practices approach will be applied, the employees will feel responsibility and they are able to manage themselves and the other staff. Employees can decide what, where, why and how to work and will give the specific job to the team members, the plans will be scheduled and there will be discussion about goal setting, example the budget, location, timelines etc. There will be responsibility in making the quality work, or quality inventory etc. Better initiatives will focused, the team or employees will be able to manage the problems, and think or remedy through idea generation on related issues. There will be collaboration among the team members, better economic performance and high productivity will take place (Schrage, 2013).

Problems With The Best Practice Model

There are distinctive management practices, in the best practice model, it shape the core competencies that how firms compete, however, in the best practices, there universal view that focus on the intangible assists. There are researchers who said that, this is the approach that best think of good practices but not of the best practices, as there should be more appropriate identification, of the underlying the choice of practices. The beast practices approach, may not fit on the organizational culture, technology or the management styles working practices.

The Best-Fit Approach

The best fit approach, emphasis on the strategic HRM, it can be perceived in the competitive advantage, in the organization the business, could be start up, grow, mature and decline. This model is also known as the life cycles of the business, under the strategic configuration or competitive strategy. This model is consistent with the growth, and development, in human resources management, practices and procedure need to be change with the changing conditions of the business. In best-fit approach, there is need to identify the need of current situation of the business, in the start up phase, the organization the HR functions have to be managed by the owner or founder, as organization, experience the high-growth, of sales or services, there should be demand of new employees by the company or organization. Line manger and founder need to handle the demand of the employees; to retain and train them is also significant at this stage. This is the time to develop and manage the talent, by practicing the policies of reward system, as the origination, is in the mature phase, HR may become less innovative, and continued to develop the existing practices, rather than creating the new ideas or practices. However, during the phase of downsizing, HR may be less involved or and may face difficulties to make the decisions. The firm may be focused on the organizational picture that what is going to be happen, analytical tool must be used in HR planners. This model or practice is best suit in the competitive strategies, as it focuses on the quality, innovation and cost leadership (Hiebeler, Kelly, & Ketteman, 2012).

Best-fit model is also known as the contingency model, in the competitive advantages, the organization can reduce the cost, and can do enhancement through innovations. In cost reduction when employers produce the goods or services cheaper than the competition, and emphasis is on the minimizing the cost at all stages, then there could be betterment, performance monitoring and training the employees is better for the competitive advantage. Through quality enhancement and innovation strategies, product could be better. The high quality of the products will take place in the competitive market; quality could be enhanced through motivating the employees, by rewarding them or giving benefits to them, partnership approach could also be effective in this way. There will changing in the products or services rapidly, the design will also be better, and there will be flexibility in solving the related problems. The best-fit approach is perceived as the term of vertical integration, between the business of organization and the HR strategies. The model provides the continuous training and development to the employees, employees are also secured, and it allows the employees to attention on the long term based achievements. The activities of the employees are also managed efficiently and effectively throughout using of this approach.

There is the long-term planning in this approach, it allow the competitors to respond in the change of new product or technology. As it predicts the environment and little research can lead towards efficiencies, it reflects the competitive or economic mission. The purposes of best fit are analyzed or define the career path, and pay opportunities for the progression.

Problems With The Best-Fit Model

This model is restricted, there of lack of association with the employee’s interest, the company only focuses on competitive advantage, rather than the others or employee’s perceptions, social norms and legal requirements are less focused. It has the so simplest view, of business strategies, because there is need to focus on other important things regarding business perspective, other than only innovation, cost reduction and quality enhancement strategies. There is too much focus on the competitive advantages.

Best Practices Or Best Fit

Regarding to the strategic human resource management, the terms “best fit” and “best practices” are applied for the specific policies, both the practices are important to maintain the organizational effectiveness. The best-fit claim the firm’s rewards system that organization should support the employs in order to achieve, the competitive advantages through innovation and cost effectiveness, while the best-practices, claim the bundle of HR policies that, rewards system, can highly motivated, the committed employees; employees are the key to get the competitive advantages (Fapohunda, 2016). Both the model has lack of clarity, about the perspective of competitive advantage, the company can specify, want is needed to achieved, by the models, or strategies. There are challenges regarding strategic HRM, both the best fit and the best practices, have the assumptions about the human resource policies that the polices should be implemented, the social environment based on the behaviors or attitude of the employees, is the indicator, tat how much organization is committed towards its goals. The strategic HRM support the employees as well as the organization, to do hard work, for the attainment of the goals, I n this way, best practices and best fir model both are significant. In the policies, there are focuses on reward structures, which can lead towards organization efficiency (Epstein & Buhovac, 2014).

Conclusion

The strategic human resource practices, can enhanced the organizational performance, it can also manage the employees by attaining the organizational goals by enhancing the productivity. Best practices model, is referred to higher commitments, to improve the employee’s attitude, and for enhance the quality through efficiency. The ‘best-fit’ and ‘best-practices’ are use at strategic human resources in management literature, the best-fit approach, explore the relationships between the strategic management and the influence of the nature. The HR policies and practices, support both the approaches, as both are significant for the success, there is just need to focus on the weakness, or problems of these models.

The best-fit school of strategic HRM focuses on the organizational strategies with respect to other systems, if company wants to accomplish the kinds of effective performance, than it is important to examine the, high commitment of management. Either the practices or approaches should be complimentary, for the development and positive impact of organizational performance. Although there are agreements in identifying the practices, however for the competitive advantages, the approaches are suitable. There is promotion of the reward system in both the approaches, which can help in the development of the qualified and hardworking employees.

In my point of view, every organization need to follow the strategic HRM practices and approaches for the growth and development, as both the approaches support the reward system, the employees can be more motivated and satisfies and through their effort, they can lead the organization towards success. We can see that approaches are different in their strategies, as there is motivation and focus on excellent performance, by applying the approaches, employees will trust the organization, moreover, organizational commitment and dedication towards goals, will provide the framework towards the organization strategies. If the organization is getting success based on the approaches, then through effectiveness, employees could be effectively retain and train. The combination of highly motivated and talented employees could participate towards the organizational goals, and companies will strongly attracted towards, the external market orientation.

Recommendation

In strategic human resources management, approaches like “best-fit” and “best practices”, should be applied, for the competitive advantage, as these approaches are the sophisticated, and can accommodate to define the national differences, the approaches can find the integrations and the linkage. These approaches can help the organization to identify the current situation of the organization in the market, there is need to resolve the conflicts with the approaches, so that the workers will be more interested. These approaches need to be focused, as organization want to enhance the organizational performance, so there is need to overcome the difference and weaknesses or problems found in the approaches.

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References
  • Boxall, P., & Purcell, J. (2015). Strategy and Human Resource Management (4th ed.). Palgrave Macmillan.
  • Clinton, M., & Guest, ,. D. (2013). Testing universalistic and contingency HRM assumptions across job levels. Personnel Review , 42 (5), 529 – 551.
  • Epstein, M. J., & Buhovac, A. R. (2014). Making Sustainability Work: Best Practices in Managing and Measuring Corporate Social, Environmental, and Economic Impacts. Berrett-Koehler Publishers.
  • Fapohunda, F. A. (2016). Best Practice VS Best Fit. Human Resource Mangement , 1-17.
  • Hiebeler, R., Kelly, T., & Ketteman, C. (2012). Best Practices: Building Your Business With Customer-focused Solutions. Simon and Schuster.
  • Schrage, M. (2013). Serious Play: How the World’s Best Companies Simulate to Innovate. Harvard Business Press.
  • Shapiro, J. C., Hoque, K., & Kessler, I. (2013). Human resource management. 1-264.
  • Theriou, G. N., & Chatzoglou, r. (2014). The impact of best HRM practices on performance – identifying enabling factors. Employee Relations , 36 (5), 536-561.
  • Waiganjo, E. W., & Awino, Z. B. (2012). Strategic Human Resource Management and Corporate Performance: A Critical Review of Literature. 2 (2), 78-93.
  • Wright, P. M., Guest, D., & Paauwe, J. (2015). Off the Mark: Response to Kaufman’s Evolution of Strategic HRM. Human Resource Management , 54 (3), 409-415.

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