The paper ' Strategic Human Resource Management' is a good example of a Management Essay. The best-practice approach to Human Resource Management and the best-fit approach are strategies that are used in organizations as part of their plans to perform better. According to Akhtar et al (2008), human resources can be used as sources of continued competitive advantage by most organizations. This implies that effective utilization of human resources through the use of proper strategies by organizations can enable the organization to compete favorably and gain an advantage over other organizations.
According to Armstrong and Baron (2002), the best practice and best fit models are part of the approaches that can be used to i9n developing human resource strategies. The best practice approach was stated to be based on the certainty that a set of best human resource management practices exist and adopting these practices leads to the superior performance of the organization. Armstrong (2006) added that the best-fit approach keeps its focus on ensuring that human resource strategies are favorable to the circumstances of the organization, its culture, external environment, and the operational processes of the organization.
Therefore, in Armstrong’ s view, the various human resource strategies should focus on the needs of the people and the organization. This paper shall discuss how these two approaches can be used as strategies to enhance as a sustained competitive advantage by organizations. Best practice approach Bruce and Benjamin (2011) stated that there are some best practices that can be used as a profitable choice by organizations to improve their performance. The best practices have been adopted from the list that was purported by Pfefer (1994).
One of the practices includes employees’ security. This entails the assurance that employees will not be made redundant in times of economic downturns and when senior management makes mistakes that he has no control over. Ismail et al (2010) stated that most organizations have shifted their emphasis on strategy from the use of external factors like the position of the industry to the use of internal factors. These internal factors include employees. It is these internal factors that are used by organizations to gain competitive advantage. Therefore, firms use their employees as resources that can propel them to a competitive advantage. Management uses practices such as extensive training, selective hiring, delegation, and information sharing in the implementation of high-performance practices.
When management feels the people are not likely to stay long in the company, no investment is made on the people. Investment in employees is made when the employees will be beneficial to the organization in the long run. This means that employees will be used to help the organization gain a competitive advantage when the management practices are carefully selected so as to be used in making the employees better (Armstrong and Baron, 2002). The practice of selective hiring was also proposed in the Pfefer (1994) practices as best practice.
Organizations seek to hire individuals who are suited to their culture, attitude, and values. By and large, organizations look for individuals who will remain in the organization. It will then train the individuals in the skills and attributes that are best suited to the individuals and those that will make the individuals better performers. While this makes the employees perform better, it also enhances their ability to work towards improving the position of the company on the competitive stage.
Fernando et al (2008) stated that when human capital is selected based on the suitability to the organization; their performance will be increased since they work within the objectives of the organization. This makes the human capital an idiosyncratic resource and one that can be effectively utilized to enhance sustained competitive advantage.
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