HRM - Best Practices and RBV
NB: Look at how the weaknesses of one model can be fixed by another model. BEST PRACTICE MODELS
INTRODUCTION
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.
WHAT IS BEST PRACTICE MODELS?
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
INTRODUCTION
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.
WHAT IS BEST PRACTICE MODELS?
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
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.