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