HRM - Best Practices and RBV

Topics: Management, Human resource management, Human resources Pages: 6 (1099 words) Published: November 15, 2013
NB: Look at how the weaknesses of one model can be fixed by another model.
Due to the ever increasing rivalry between organisations, managers have been forced to develop strategies to allow them to compete in the competitive business environment and to provide the organization with a sustainable competitive advantage. This is where HRM, and the topic of best practice models appear.

Although, there is no real definition of best practice model, Johnson (2000) put it best when he said "Best Practice' or 'high performance' work practices are described as HR methods and systems that have universal, additive, and positive effects on organisational performance. " In other words, these practices must compliment and enrich each other , and add to the performance of the organization.

Delaney and Huselid (1996) outlined that, "HRM best practices are designed to enhance the overall performance of employees within the organisation, ultimately resulting in increased organisational performance." They also went on to say that commitment, by both employer and employee, plays an important role with best practices. This is because with increased commitment comes increased performance. However, commitment is not the only factor needed to promote best practices. Competence, motivation and effective job design are also needed to promote positive employee behaviours. Simply, best practices are aimed at:

1. Developing employees
2. Improving organisational performance and create a sustainable competitive advantage.

A. HARVARD MODEL (Beer at al 1984)
Example: Google
According to Armstrong (2003), the framework is based on the belief that, the problems of historical personnel management can only be solved when general managers develop a viewpoint of how they wish to see employees involved in and developed by the enterprise, and of what HRM policies and practices may achieve these goals.

To simplify the Harvard Model:
1. There are multiple stakeholders (employees, government and community at large) 2. Emphasizes that employees are equally important in influencing organizational outcomes 3. HRM Policy Choices :
Employee Influence - delegated levels of authority, responsibility power Human Resource Flow - recruitment, selection, appraisals, promotion Reward System - pay systems, awards, employee of the month

Work System - design of work and alignment of people.

4. The achievement of the crucial HR outcomes has got an impact on long term consequences, increased productivity and organizational effectiveness which will in turn influence shareholder interests and situational factors hence making it a cycle.

5. It is thus important to note that the Harvard model is premised on the belief that it is the organization’s human resources that give competitive advantage through treating them as assets and not costs.

Encourages employees and gains maximum
performance from them
Helps employee to turn their work environment to a
better place and minimizes stress.
Creates equal chance for opportunity to each
individual in the company. 
Eliminates procrastination and monotony. 
Increases productivity and creativity by
decentralizing company structure.
Enables long-term communication and collaboration

It might not suit to most organizations because
employees aren't ready for change.
Not all employees are motivated by being giving more
Requires great understanding and application
capability through business and its employees. 

between employee and management
Employs right people for the necessities of business
projects and achievements. 

There is no real definition of the partnership model and whether or not it deals with the relationshop between the organisation and the individual or the organisation and the trade union. However, there are 6 key principles to note:...

References: 1. Johnson, E. (2000). The practice of Human Resource Management in New Zealand:
Strategic and Best Practice? Asia Pacific Journal of Human Resources
2. Delaney, J., & Huselid, M. (1996). The impact of human resource management
practices on perceptions of organisational performance. Academy of Management Journal
3. A, Henry (2008). Understand Strategic Management . Oxford University Press.
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