Best fit vs best practice and nsms

Topics: Management, Human resource management, Strategic management Pages: 13 (4996 words) Published: May 1, 2015
Best fit vs best practice
The best fit school
Hr strategy becomes more efficient when it is linked/ tailored to its surrounding context or environment of the business. There are two elements of best fit school
1) External fit- the fit is inked to the operations strategy/ marketing strategy etc., ie the competitive strategy of the overall business. 2) Disadvantage- can overlook employee interests. Some firms are good all-rounders so hr practice unlikely to be based on one strategy. There is always tension. Can be too focussed at expense of flexibility and agility. 3) Internal fit – hr policies and practices must be coherent. Avoid policies which work in opposite directions ie encouraging teamwork then rewarding individual performance. Make sure that practices are in proportion to the organisation ie stage of development/ resources.

The best practice school
All firms will see performance improvement if best practice implemented. Identify the best practice, give hr a high profile, get top level commitment, sell it, so it, measure it, reward champions Advantages- Bp model emphasis on enhancing employee abilities or knowedge and skills through good recruitment and strong training. Bp model contains an emphasis on motivating desired behaviour through strong incentives. Bp model include ways of opening up opportunities for better trained and more motivated workers to contribute their ideas through work redesign and indirect forms of employee participation. Disadvantages

Difficulty arises when we go beyond these straightforward practices. There is great diversity of best practice which moves away from uniformity. There can be conflict between benefit to company and benefit to worker ie reengineering and downsizing. Employees may lose their voice. May not be appropriate in all situations or even in sections of same business. Why it is difficult to adopt

Difficult to implement
Often crisis driven
National differences
Poor track record
Threat to authority
Difficult to determine cause and effect

New service management school
Is a body of largely US writing on the management of service industries, which stresses the contribution of high-commitment management to both the delivery of high levels of customer service and business performance. The new service management is opposed to the application of scientific management to service operations. Instead, their central concept is the satisfaction mirror, the notion that if employees experience high levels of job satisfaction, then this will be reflected in high levels of customer satisfaction with services. To secure high-worker satisfaction, new service management prescribe a number of HRM practices, including careful selection of employees on the basis of commitment to service, high-quality training, well-designed support systems, empowerment of workers to respond to customer needs, team working, and rewards that reinforce service-oriented behavior. These HR practices, moreover, should be reinforced by the development of a service culture, which emphasizes the need for responsiveness to changeable and variable customer needs. The new service management school is an example of prescriptive HRM and has influenced aspects of business practice in retail, financial services, hospitality, and other service industries. Critics, however, have pointed to the limited break with scientific management in many service industries, the low pay and limited empowerment of workers in front-line jobs, and the antagonistic relationship that can emerge between customers and those who provide them with service. [See also customer-oriented bureaucracy.] Two approaches

Production Line Approach and Empowerment Approach
Production Line Approach
Standardised product
Assembly line production
High levels of management control
Systematised work flows
Tight measurement
Simplify tasks, clear division of labour
Replace people with technology where you can
Less worker discretion...
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