Relevance of Human Resource Models - Essay Example

Essay Student Name University Relevance of Human Resource Models Human resource practices have in the past been viewed as a business function that has received the least attention. This is no longer the case because it has undergone tremendous evolution in many aspects, becoming an important function of management. Whenever a financial year begins, human resource professionals begin to build their human resource plans and strategies for the following financial year (Wei, 2006). The question in the minds of these professionals is what human resource strategy they will employ that will see them through the year. There has always been a tendency for the human resource practitioners to use the practice approach across the board irrespective of the nature of the environment under which the organization operates (Theriou & Chatzoglou, 2008). There is an argument on whether this approach can best fit each and every organization, or rather have a specific strategy for a specific firm’s situation and that the era of applying a uniform strategy across the board is long dead. This paper aims at examining the evidence to support the claim that the claim that current models of best practice in human resource management can no longer be applied, but rather the human resource specialists should base their actions on the fact that each policy choice in human resource management is contingent on the specific strategy and the competitive context of the firm. The best practice approach as a model is based on an assumption that there exists a set of best human resource practices that once they are adopted, will automatically lead to improved performance of the organization (Armstrong, 2008). They are deemed to be universal in that they can be applied in any situation in the organization. There are a number of best practices that have been produced, they include: job security, selective recruitment, self- managed teams, training, high compensation, reducing wage differentials, sharing of information (Armstrong, 2008). The best practice approach has received a fair share of criticism, most of the critics commenting on the overstating of the approach and its ability to deal with all the situations in the organization. There are a number of scholars who have contributed to this thought as well as leaders in the corporate world who have weighed in on this discussion (Sheehan, 2005). The concept of best practice has been under attack by a number of commentators who believe that any approach that proposes a single universal set of rules has clearly been overstated (Armstrong, 2008). Scholars have found out that there are known examples of firms in each and every industry that have unique management styles and practices that shape the core competencies. That is a determination of how firms can show their competitive edge (Armstrong & Baron, 2002). The approach has also been criticized because a number of inconsistencies have been pointed out as far as the belief in best practice and the resource based approach is concerned, which dwells on the intangible assets. This includes the human resource practices that enable the organization to excellently deal with all levels of competition that they face (Bruce, 2013). The question always will be on how universalism can be placed together with the notion that only a few resources and practices are important and has value attached by virtue of being rare and imitable albeit imperfectly (Armstrong & Baron, 2002). The contingency theory of management emphasizes the need for interactions between an organization and its environment so that any decision that has to be taken is done and is dependent on the context under which they operate. Therefore, this means that it is extremely difficult to imagine that there exist such things as universally applicable best practices (Hiltrop, 2002). It is therefore right for one to say that what works well in one organization does not necessarily mean it can do well in another organization because their culture, strategy, styles of management, working practices as well their technology may differ. For organizations therefore to achieve optimum results, then the work systems must carefully be customized with the organization’s high performance systems (Kramar, 2013). It is important to note however that having knowledge of what is presumed to be the universally acceptable best practice can be used in influencing decision making on what practices are the most appropriate so as to fit the needs of the firm (Theriou & Chatzoglou, 2014). This is as long as everyone understands the reason as to why a particular practice is regarded as best practice and what the organization needs to do to ensure that it works in the best interest of the organization. There are arguments in favor of the use of the concept of best practice being applicable in the identification of the best principles to apply in selecting the best practice rather than the practices themselves (Kramar, 2013). It is not difficult to understand the reason as to why best practice is getting so much attention compared to the other strategies because at the first look, it seems to guarantee positive results. Going by its definition, it brings a concept that has already been tested in researches or extracted from case studies of the success stories of organizations that employed the approach (Mello, 2010). The implementation of a strategy therefore that is outside the best practice approach of human resource management is a risk no one is willing to venture into. Human resource professionals have alluded to the fact that top level management have always resisted embracing the idea into the new initiatives unless another known company has successfully implemented the approach (Theriou & Chatzoglou, 2014). The concept however, assumes that there is one particular practice that is better than the rest. The reality on the other hand is that there could be a number of approaches whose application could help the organization in achieving their targets while the others will become an obstacle (Pilbeam & Corbridge, 2006). For an organization to put in practice any human resource strategy in a successful manner, then greater attention has to be placed on the unique context and the culture under which the organization operates (Kuvaas & Dysvik, 2010). The consideration of a number of related factors which include existing practices and processes are the determinants on whether the chosen concept will be a success to the organization or not. The mere imitation of the approaches forms utilized by different organizations without thought of the conditions under which they operate, might lead to wasting of cash as this methodology is unrealistic in conveying the best results (Wang & Shyu, 2008). Duncan Brown, a former Director of the Institute for Employment Studies, is in support of the requirement for a custom-made way to deal with HR arrangements, saying: "I hope in 10 years' time the whole notion of 'best practice' - in other words, copying what everyone else has done - will be dead and buried, replaced by 'best fit', with HR professionals crafting differentiated approaches to people management in their organizations that suit their circumstances and their culture, as the best HR directors do already" (Hannah, 2011). Organizations oriented towards achieving their objectives should be more effective; they should shape and send customized human resource practices and frameworks that are the 'best fit' for them (Wang, 2015). This is an extensive test; tending to the special needs of your business will require watchful thought of the considerable number of choices in the light of your business environmental setting. An excellent approach has to be taken in identifying the practices that make organizations successful (Millmore, 2007). This will empower you to come into terms with the human resource responses that best fit the business inquiry being sought. A perfect example of the potential negative effects of doing what other organizations are doing is clearly illustrated by the Southwest Airlines based in Dallas that benchmarked their refueling process against other airline companies. They however realized later realized that being the leaders in the industry, some of improvement is needed in their way of doing things. They found a perfect benchmark in the formula one racing refueling process. The airline is now in a position to refuel their aircrafts in only 12 minutes (Pilbeam & Corbridge, 2006). Lynda Gratton of the London business school offers the vision that setting up a starting point to the concepts that identify the unique contexts that identify with individual organizations is the secret to a sustainable business in the future (Nankervis,et al, 2010). In conclusion, the opinion on whether the best practice is appropriate is divided. There are those who are reluctant to take risks by pursuing a different approach, while there are those who believe that there is an approach for every situation in an organization. Something however is clear, that there is no particular way of doing things that can be applied across the board. One has to take a critical analysis of what objectives the firms aim to achieve and the strategies that can be employed to achieve that. By taking a best fit methodology, firms get adaptable, significant solutions that are outlined by adjusting business and human resource objectives, current best practice and the one of a kind organizational culture and procedures. Such procedures will probably be promptly acknowledged by employees and will make it possible for organizations to pick up an upper hand by meeting particular business needs, which can then lead to better organizational performance. Reference Armstrong, M. (2008). Strategic human resource management: A guide to action. New York: Kogan Page. Armstrong, M. L., & Baron, A. (2002). Strategic HRM: The key to improved business performance. London: Chartered Institute of Personnel and Development. Hannah, S. (22nd August 2011). Is “best practice” holding you back? HR Magazine, England & Wales. Hiltrop, J. M. (2002). 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