The paper "Best Fit and the Best Practice Approach in Strategic Human Resource Management" is an outstanding example of a management literature review. The concepts of best practice and best fit according to Storey (2007) are utilised in the SHRM to different organisational structures, such as reward structures. All the existing approaches endeavour to expound the way HR policies can result in improved organisational efficiency. Basically, organisations can work with both the best practice and best fit. In this regard, the best fit focuses on aligning organisational strategy closely with different systems with the objective of improving the organization.
Proponents of the Best Fit argue that good performers always look for employment in organisations where good performance is not only recognised but also rewarded. Clearly, skilled personnel prefer working in environments where good performers are appreciated. On the other hand, the Best Practice Model is anchored on the notion that there exist some best HRM practices, which when adopted can result in improved organisational performance. Generally, the Best-Fit Approach serves as an answer to the inadequacies associated with the Best-Practice Approach.
Furthermore, the Best-Practice model considers that the SHRM objective is offering a fit amid the business and HRM policy goals. As pointed out by Guest (1997), the organisation's HR strategy has to be contingent on the organisation’ s circumstances and needs. The purpose of this essay is to critically analyse, compare and contrast the best fit as well as the best practice approach in SHRM literature. Discussion Armstrong (2009) pointed out that the approach of best practice is rooted in the conjecture that there exist some best practices HRM, which are universal since they are best in all circumstances; therefore, espousing them can result in superior performance in the organisation.
Pfeffer (1998a) as cited by Armstrong (2009) provided numerous lists of ‘ best practices’ ; self-managed teams, information sharing, selective hiring, employment security, training, high compensation dependent on performance, and decreasing status differentials. Some commentators as mentioned by Armstrong (2009) believe that the ‘ best practice’ rubric has been exaggerated since the majority of companies have different management practices. On the other hand, the best-fit approach according to Armstrong (2009) is in proportion to the contingency theory and stresses the need for HR strategies fitting with the organisation’ s state of affairs and context.
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