Analysis of Best Practice vs. Best Fit HRM for BT Group

This report examines the contrasting approaches of 'best practice' and 'best fit' in Human Resource Management (HRM), using BT Group as a case study. The analysis delves into the advantages and disadvantages of each approach, assessing their impact on both employee and organizational performance. 'Best practice' HRM, characterized by a universal set of activities focused on employee development, fair appraisals, and a structured communication system, is contrasted with 'best fit' HRM, which emphasizes aligning HR strategies with the specific circumstances of an organization. The report highlights that while 'best fit' provides coordination, 'best practice' is more effective for global companies like BT Group, leading to higher employee commitment, productivity, and enhanced competitive strength. The report also acknowledges drawbacks, such as higher costs and the complexity of adaptation for best practice, and the lack of employee focus in best fit. The conclusion emphasizes that the adoption of 'best practice' HRM has a positive impact on both employees and the organization, leading to improved performance and competitive advantage.

International and comp
HRM

INTRODUCTION
International and domestic HRM both are basically related with better management and
procurement of employees that consist of effective planning, organising, directing and
controlling development and maintenance of people working in the organisation (Bibi, Ahmad
and Majid, 2018). The company selected for current assignment is BT group that is a globally
operating telecommunication company having it’s headquarter in London, UK (BT Group,
2020). The main purpose of current assignment is to discuss about and develop better
understanding of advantages and disadvantages of a ‘best practice’ as opposed to a ‘best fit’
approach to HRM. Beside this, the issues that are to be discussed in current assignment consist of
description about the consequences of best practice’ and ‘best fit’ approach to HRM for both
employee and organisational performance
Main Body
HRM can be defined as a set of various activities like recruitment, selection, development,
planning, organising, etc that aim at targeting and having better human resource management in
order to meet organizational objectives along with achieving competitive advantage over
competitors at both domestic and international level (Cox, 2017). BT group is a well known
telecommunication company that is a globally operating and having its headquarter in London,
UK. BT group is having its business operations in more than 180 countries of world and is
considered as the biggest provider of broadband, fixed-line and other mobile services along with
IT and subscription Television services (BT Group, 2020). Being an multinational organisation it
become more vital and crucial for BT group to look out at use of some better and more effective
HRM approaches that helps in better hiring and improved training of workforces along with
better take care of performance and efficiency of employees to achieve and meet global targets
of BT group.
The most common approach to HRM that can be used by an organisation is consist of
Best Fit and best practises approach to HRM. Best fit approach basically emphasis on the fact
that HR strategies should be in accordance with and appropriate to situation and circumstances of
organisation that includes operational process, culture and external environment of an
organisation (Helmig and et. al., 2019). On the other, hand best prcatises approaches is mainly
associated with bundles of HR activities that not only focuses on situation of organisation but
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provide a universal support to organisation in order to achieve better competitive advantage and
strength in its organisational industry and global business environment. Thus, it can be evaluated
that ‘best practice’ approach to HRM is far better as opposed to a ‘best fit’ approach to HRM
especially for a globally operating company. It has been observed that best fit approach is
basically a contingency approach that focuses only on situation of organisation while best
practice is a universal approach that provide a set of effective HR strategies to achieve universal
and global targets. Thus, use of Best practises approach to HRM is suitable and more effective
for a global operating company like BT group.
The main characteristic of Best Practises approach to HRM as opposed to best fit
approach consists of more emphasis on employee development, better promotion strategy and
use of other incentive as a reward to enhance and encourage employee performance, timely
career progression along with fair appraisal exercise (Delery and Gupta, 2016). Beside this, a
fairly structured communication system and well-framed recruitment process is also lead by Best
practises approach of HRM that ensures section and procurement of more talented and skilled
workforce. Further, a friendly working environment through removal of all status Differences
and high Commitment Management System is also ensured by Best prcatises approach that is
useful for BT group to have a more effective and motivated workforce with better management
and control to achieve the global and universal targets and objectives on time.
The main aim and emphasis of best fit approach is on setting a better co-ordination
between HR strategies and organizational strategies to have them in align with each other thus, it
is restricted along with the culture and operational process of an organisation while the biggest
advantage of Best prcatises approach to HRM as opposed to Best Fit approach consists of the
fact that emphases on universal set of activities to achieve global targets in a more effective
manner (Wood and Kispál-Vitai, 2017). Further, it could also be observed that Best practises
approach to HRM highlights the relationship between collection of good HR practices and
overall organisational performance that is necessary and mostly defined and lead to higher
employee commitment and satisfaction level through having emphasises on universal set of
activities that consists of timely training and reward fir employees that motivates them for higher
performance. These sets of universal best practice are useful and effective for an organisation
that is operating at global level to enhance the performance of its organisation and employees.
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Further, the other main advantages of Best Prcatises approach as opposed to best fit
approach of HRM consists of regular employee training and development that is required by a
global organisation like BT group to enhance skills and knowledge of its employees in order to
achieve its corporate business goal. Further, training and development also lead to enhanced
competitive strength and improvement in self-confidence of employees through ensuring better
skills and competencies in employees (Sandrin, Trentin and Forza, 2018). Use of performance
appraisal and other perks as motivational tool is also a biggest advantage of Best Practises
approach to HRM that ensures higher productivity for organisation and enhanced motivation and
satisfaction level for employees. Use of best practises approach to HRM also ensures higher
commitment and loyalty in employee of BT group as timely rewards and perks are useful in
enhancing their dedication and commitment level towards the global organisation. Further,
Performance appraisals of employees allow an individual performance to be assessed in an more
effective way which can serve as a production benchmark for operational performance in order
to achieve global targets of a firm (Bratton and Gold, 2017). Apart from all these a better
communication system is also offered by Best practises approach to HRM which is essential for
an international organisation to ensure effective coordination in business operation and run it
more smoothly. Apart from all these advantages, Adoption of best practise approach to HRM
also lead to effective use of teams that would lead more effective and efficient outcome for BT
group through leading better management and balance among teams members and overall staff
to achieve set targets on time.
Beside this all these advantages, some drawbacks of Best Practises are also there in as
opposed with Best Fit approach that consist of the fact that it is more difficult and complex to
adopt change and modification in organisation strategy through implication of best practises
strategy as it limits the strategy and is subject to multiple alternating contingencies that is more
difficult to handle new challenges and adopt dynamic modification as the HR system could not
be adjust entirely in case of best prcatises strategy (Järlström, Saru and Vanhala, 2018). Further,
the other drawback of Best practises approach to HRM consists of High cost as providing regular
training and extra perks could be more costly for an organisation. Beside this, a more skilled and
talented managers and leaders are also required to properly implicate and adopt best practise in
the organisation otherwise all the money spend on training and other set of activities would go
waste that is a setback of using Best prcatises approach by BT group. The another drawback of
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Best practises approach to HRM consist of the difficulty faced in selecting and adopting a
universal approach as it is complex and difficult to select a universal methodology for an
organisation.
The biggest advantages of Best fit approach to HRM is that it helps in setting a balance
and effective coordination in HRM strategies and overall business strategies that keeps a better
coordination and ensures effective workflow in the organisation. Use of best fit strategies is
useful for an organisation as it less complex and relatively cost effective as compared to best
prcatises approach thus, can be adopted by an organisation to have better check and emphasis on
circumstances and situation of organisational environment (Rana and Malik, 2017). The use of
this vertical integrated approach of HRM with provide a proposition that organizations would
become more effective and get achieve better success if they adopt a policy of strategic
configuration merely through matching their strategy and HRM practises with the ideal practices
where leverage and better outcome is gained through the close link of HR policies with all other
business practices and activities in order to achieve and accomplish business objectives in a
better way. Further, the adoption and implication of best fit model and approach of HRM yields a
more better strategic advantage that makes it much easier to make changes and adopt
modification in a more progressively manner and in bite sizes thus, it is more dynamic ad
effective to deal with contingencies as it keep a proper balance and coordination among HR
practises and overall business strategies. The only drawback associated with use of Best Fit
approach to HRM is related with the fact that it a contingent theory and not emphasis and lead to
a universal theory to achieve and accomplish global targets of an organisation. Beside this, the
another drawback of Best fit approach to HRM consist of the fact that it does not focus and lack
alignment and fulfilment of employees interest that lead to de-motivation in employees and
hamper their performance (El-Ghalayini, 2017).
Thus, with respect to above discussion it can be evaluated that adoption of best practises
approach to HRM lead a positive impact on both employees and organisation as it facilitates
better training and development programmes that enhance the skill and competencies of
employees and at the same time also lead to better and enhanced productivity for organisation.
Further, yielding regular perks and incentives as a part of Best prcatises approach to HRM for
employees boost their morale and satisfaction level that build better commitment and loyalty
towards organisation (Boselie, 2016). Thus, it can be evaluated that adoption of Best practises to
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HRM by BT group lead to positive consequences and implication on performance of both
employees and organisation as it ensures a better communication system and effective bonding
between team members to accomplish and achieve desired goals of organisation in an more
effective and better manner. On contrary, the best fit approach to HRM facilitates better co-
ordination and balance between HR practises and overall organisational strategies thus, lead to a
more effective way for an organisation to implement and come up with adoption of new changes.
But overall, Best Fit approach to HRM strategies lead to a negative impact and consequence on
employees as it does not emphasis on betterment of employees not even aims at providing better
incentives and perks to them thus, lead to de-motivation and dissatisfaction among employees
(Bibi, Ahmad and Majid, 2018). Thus, it can be evaluated that implication of ‘best practice’ as
opposed to a ‘best fit’ approach to HRM lead to more positive impact and consequences for
performance of both organisation and employees. As for organisation, Best Prcatises ensures
higher competitive strength and productivity through enhancing skills and competencies of
employees. Consequence of Best practises on performance of employees is also positive as it
facilities better incentives and perks for them that enhance their efficiency and motivation level
(Cox, 2017).
CONCLUSION
On the basis of above assignment it can be concluded that HRM plays a vital role in
effective planning, organising and management of human resources that is necessary to achieve
the goals of an organisation. Further, it has been evaluated that best fit and best practise are two
vital approach to HRM that are having several advantages and disadvantages. At last it can be
summarised that, adoption of best practises approach lead a positive impact on a global
organisation and its employee’s through enhancing its competitive strength and leading timely
incentives and perks for employees to enhance their motivation level.
REFERENCES
Books and journal
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Delery, J. and Gupta, N., 2016. Human resource management practices and organizational
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Online:
BT Group. 2020. [Online] Available Through:<
https://www.forbes.com/companies/bt-group/#67f72a4232a8>.
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