Hrm- Best Fit and Best Practice

Topics: Management, Human resource management, Human resources Pages: 6 (1792 words) Published: June 3, 2011
Subject: Human resource management


In the modern business world, new practices and aproaches are being introduced. When talking about new concepts the most important concepts being used nowdays in Human resource management are“Best Practice“ and “Best Fit“. There is a big increase on the debate between Best practice and Best fit, as to whether they general concept of Best practice is benificial to every organization and similarly the same for the concept of Best fit. Best practice suggests certain types of practices are universally successfull while Best fit acknowledges the relevent impact of contextual factors. Further below we will look into detail the two concepts in question and see how they are similar or different and how they impact different organizations and their employees and employers.

Organizations all over the world have now started to invest heavily in their Human resource department as they know the importance of how to keep the employees motivated. The main task of the human resource department is to keeop track of all the employees and make sure they are properly motivated. Human resources play a major part in the affectivness of any organization's functioning. The major role of HR is to recongnize the importance of human resources as they are a valuable means of improving productivity and the awarness today of the costs associated with poor human resource management. The HR takes care of recruitment, payments, training expenses, another important role is to keep the employees motivated and their morale at their peak. This in turn results in good working conditions for the employees and job satisfaction.

Best practice:

The best way to understand best practice is by understanding that not all businesses work and operate in the same way. Every organization focuses mostly on reducing their costs and increasing their net profit margins. When all this is taken into account then we can understand that in order for any organization to be successfull they need to have the right employees working together and giving their best to improve the daily functions of the organization.

“Delaney and Huselid (1996) outline that, HRM best practices are designed to enhance the overall performance of employees within the organisation, ultimately resulting in increased organisational performance“. (

Also noteworthy is the fact that the commitment has an important role in human resource management best practices. Commitment demonstrated by the employer regarding areas such as training and development for example, is compensation paid by the employee, with this increased commitment to the organization, increases performance as employees are more skilled and engaged in the profession, resulting in a 'win - win' for both parties. In simple words we can also say that all best practice techniques are designed to help boost the employees morale, committment and passion for their work, this in return leads to an overall better performance for the organization and results ultimately in creating sustainable competetive advantage. The whole concept of best practice has evolved from the nurturing of employees by the employers to get their full potential. Employees are seen as a valuable resource by their employers as they have the ability to provide the competetive edge needed to boost the organization's overall performance.

According to the CIPD (Chartered Institute of Personal Development),The concept of best practice is based on beliefs that there are some superior practices that if applied can lead to better overall business performance. More commonly known is probably that of Pfeffer's list of seven best practices of sucessful organizations. This includes; employment security, selective hiring, self-managed teams, high compensation contingent on performance, training, reduction of status differentials and sharing information....

Johnson G & Scholes K (1997) (4th Edition) Exploring Corporate Strategy Prentice Hall, Hemmel Hempstead.
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