Advantages and Disadvantages of Best Practice and Best Fit
Best practice and best fit are common principles in HRM. However, the best-fit approach implies introducing HRM strategy, which complies with the initial mission statement of the firm (Boxall & Purcell 2013). This tactic helps the company shape a distinct competitive advantage (Boxall & Purcell 2013). In this case, it optimizes the human resources to enhance the strategic alignment with the company’s mission statement but lacks the innovation initiatives (Sahoo, Das & Sandaray 2011).
The best practice approach focuses on embracing the best and commonly accepted HRM practices and proposing novel solutions to enhance performance (Boxall & Purcell 2013). In spite of being favorable for the development of innovative resolutions, cherishing the initial function of HRM is critical. For instance, employing this approach might have an adverse impact on the employees’ motivation and commitment, as their personal goals might be ignored (Alvesson 2009; Waiganjo, Mukulu & Kahiri 2012).
Creation of HR Strategy
The best fit has a positive impact on the development of the HR tactic. For instance, the best fit emphasizes the significance of the corporate strategy (Boxall & Purcell 2013). Simultaneously, it evaluates industrial trends, actions of competitors, internal changes, and the attitudes of employees (Aslam et al. 2013). The activities help create a perception of HRM as a strategic partner of the firm. In this case, the management views HR department as an important component of the decision-making system. It contributes to the expansion of HR responsibilities, as it is regarded as an initiator of suitable solutions to enhance organizational profitability.
Additional Aims of HR
Despite the involvement of the HR department in the alignment of the strategy, one cannot underestimate the need to propose different solutions to enhance organizational performance. HRM can conduct a continuous assessment of the external and internal environments and suggest the strategies to define the firm’s distinct competitive advantage (Boxall & Purcell 2013; Lemmergaard 2009).
Simultaneously, the HR practitioner should aim at becoming a strategic partner of the company and provide favorable conditions for personal development (Alvesson 2009). Notwithstanding the gravity of tactical initiatives, HR managers have to focus on the original functions of HR and ensure that the employees of the organization are motivated and committed to their work. Underrating commitment might lead to a decline in the quality of the provided services and question the ability of the HR department to participate in the decision-making.
As for the reflection of the alignment at my workplace, the firm was focused on providing high-quality products at a competitive price. It was necessary to maintain the production costs low and ensure commitment among employees. In this case, the HR department used outsourcing to reduce expenditure and cultivated an internally competitive environment to pursue excellence in the quality of the products.
Based on the examples provided above, I have experienced the concepts of best-fit strategy at my workplace, as the company prioritized the alignment. Simultaneously, attaching strategy to the external and internal fits assisted in being responsive to the environmental changes. It pertains to the flexibility of the decision-making and contributes to the firm’s differentiation strategy. A combination of these features made the HR department an important contributor to administrative decision-making and partner of the firm.
Alvesson, M 2009, ‘Critical perspectives on strategic HRM’, in J Storey, P Wright & D Ulrich (eds.),The Routledge companion to strategic human resource management, Routledge, London, pp. 52-68.
Aslam, H, Aslam, M, Ali, N, Habib, B & Jabeen, M 2013, ‘Human resource planning practice in managing human resource: a literature review’, International Journal of Human Resource Studies, vol. 3, no. 1, pp.200-212.
Boxall, P & Purcell, J 2013, Strategy and human resource management, Palgrave: London.
Lemmergaard, J 2009, ‘From administrative expert to strategic partner’, Employee Relations, vol. 31, no. 2, pp. 182-196.
Sahoo, S, Das, S & Sandaray, B 2011, ‘Strategic human resource management: exploring the key drivers’, Employment Relations Record, vol. 11, no. 2, pp. 18-32.
Waiganjo, E, Mukulu, E & Kahiri, J 2012, ‘Relationship between strategic human resource management and firm performance of Kenya’s corporate culture’, International Journal of Humanities and Social Science, vol. 2, no. 10, pp. 62-70.