Evaluating Best Practice and Best Fit Models in Strategic HRM

This essay provides a comprehensive analysis of the 'best practice' and 'best fit' models within the context of Strategic Human Resource Management (SHRM). It begins by introducing the core concepts of SHRM and then delves into a detailed discussion of the 'best practice' approach, highlighting Pfeffer's seven best practices for achieving competitive advantage through HRM. The essay critically evaluates the advantages and limitations of this model, noting its potential rigidity and oversimplification. Subsequently, it explores the 'best fit' model, emphasizing its contingency-based approach that aligns HR practices with business strategy, referencing Schuler and Jackson’s model. The essay also addresses arguments against the 'best fit' model, particularly its potential impracticality in real-world scenarios. It concludes by advocating for a balanced approach that integrates the strengths of both models, focusing on employee well-being while aligning HR practices with broader business objectives, underscoring the dynamic nature of HRM and the importance of adapting strategies to achieve excellence.

HUMAN RESOURCE STRATEGY
Introduction
Human resource strategy is one of the most significant aspects in the study of
business as the concept of Strategic Human Resource Management (SHRM)
focuses on systematic and methodical approach towards a business organisation’s
most efficient resource that is employees and respective policy development
approach around the same (Boon, 2016). The instant essay delves into the concept
of “best practice” and “best fit” in the context of SHRM. The primary theme of the
essay revolves around the critical analysis of these concepts by putting the argument
in this regard by respective scholars through literature review and also summarising
the finding to present the essence of the content of the paper in the context of
SHRM.
At the beginning of the essay, the researcher has introduced the topic briefly
followed by the discussion on the chosen topic. Such discussion involves putting
arguments for and against the concepts so identified in the theoretical backdrop of
the relevant field of study. Based on such analysis and argument, the researcher
finally concludes the paper by ending note stating the final position of the researcher
with respect to the chosen theme or topic of the paper.
Discussion
Main Idea 1: Best Practice
Sub Theme 1
The section will provide an overview of the concept of best practice in the HRM
context.
The concept of best practice in human resource management is a much-debated
topic. As per Pfeffer, a business organisation needs to have few standardised human

resource management policies and principles in place which should focus on
maintaining and managing and efficient workforce through motivation in order to
achieve organisational goal effectively (Wright, Nyberg & Ployhart, 2018). In this
context, it will be wise to note that the best practice concept is somewhat different
from that of the concept of best fit which will be discussed in the next section of the
paper. As per the best practice concept denoted by Pfeffer, there are 7 best
practices that an organisation may need to adhere to for achieving competitive
advantage with respect to HRM and these are as below:
Employee security
Selective hiring
Effective teamwork
Performance-based compensation
Pertinent and relevant training
Democratic organisation and
Easy access to information (Veld, 2016)
Summary: The section presents a brief idea about the concept of best practice in the
HRM context.
Sub Theme 2
The section will present a discussion on the advantages and disadvantages cum
limitations of the concept of best practice in the HRM context.
The advocates of the best practice argue that there is a universally approved
approach or method that may lead to superior business performance in terms of
HRM. The proponents of the concept state that there are certain bundles of activities
that a company must undertake in order to achieve a sustainable goal with respect to
its human resource and thereby attain competitive advantage in the industry over
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others for the long term. In other words, the best practice concept aims to establish
that the management should not change or tweak standardized human resource
principles for methods to be in line with the changing landscape of labour market,
technological and social advancement and change in the global scenario of
business. Rather, adherence to those standardised bundles of activity will help the
business to achieve sustainable and motivated workforce which will, in turn,
contribute towards the achievement of broader corporate objectives effectively
(Soomro & Shamsi, 2018).
However, it has also been observed that the model has been alleged for its number
of limitations. First of all, these best practices may not be considered to be e fruitful if
not applied efficiently. For example, hiring right people largely depends upon the
scene in the labour market and placing right people in right job role does not
necessarily mean operational excellence if the supervision and monitoring remain
inefficient without structured communication and reporting framework, responsibility
delegation and duty segregation. Similarly, the other points have also been
countered by different researchers. The primary essence of the theory's weakness is
its oversimplification and rigidness in accepting situational needs and thereby
tweaking HRM principles and policies accordingly (Pfeffer & Berchez, 2017).
Summary: The section above critically evaluates the concept of best practice stating
its importance as well as limitations in HRM study and practice.
Main Idea 2: Best Fit
Sub Theme 1
The researcher will present a brief discussion on the concept of best fit in the HRM
context in this section.
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The concept of best fit, as stated earlier, is a kind of opposite to the concept of best
practice. The researchers argue that best practice concept focuses primarily on
employees which may be construed to be biased and best fit nullifies the same. Best
fit rather emphasizes on both the end and hence policies and principles modification
form the essence of the concept which is the underlying value proposition of the
study of SHRM.
As per Schuler and Jackson’s best fit contingency model, the policies and
procedures should focus on employees and employers both in a systematic and
phased out manner. The researchers here argue that there is a relationship between
innovation, business process and service differentiation in the backdrop of customer
orientation and employee commitment. The theoretical framework of the model
shows that the company's mission and value framework should incorporate the
company’s desired competitive strategy; either cost leadership or differentiation or a
mixture of both (SADAT, 2018). Subsequently, such strategies should provide a
framework of required employee behaviour in the form of teamwork, quality, risk-
taking, commitment and focus on motivation. Based on such behavioural pattern,
supportive HR practices should be formed by way of compensation, performance
appraisal, staffing and training. From such a systematic and methodical approach,
the desired outcome will be generated through the alignment of employee behaviour
with the organisational goal (Malik, 2018).
Summary: The researcher provides a brief overview of the concept of best fit in this
section.
Sub Theme 2
The researcher, in this section, will put a discussion on the key features of the best fit
model of HRM.
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The advocates of the best fit concept put the claim that the management of a
business may need to change or modify the HRM policies, procedures, principles
and methods to match with that of the situational preference. In other words. the
human resource policy should be aligned with the business strategy and the
management should focus on both the needs for the organisation as well as for the
employees (Pattanayak & Sahoo, 2017).
This theory is primarily a contingency based approach that focuses on the
importance of having a fit between organisational strategy and relevant HR
practices. It is needless to mention that organisational strategy influences employees
work behaviour and therefore there should be a balance and consistent alignment
between these two variables to achieve the strategic outcome.
Summary: The section provides a concise insight into the conceptual framework of
how the best-fit model works.
Main Idea 3: Best Practice Recommendation
The section will present a discussion on the relevance of the best practice approach
in a business context.
Taking reference from the previous note, it may be stated that best fit concept is
dynamic and changes over time to align business strategy with HR practices;
however, there have been arguments against the proponents of the theory. Boxall
and Purcell have argued against the best fit contingency approach where the
researchers are of the opinion that the best fit model is contingent and therefore
cannot be applied universally in all HRM scenario (Boon, 2016). Since the model
involves a number of variables, alignment of the different variable to achieve a
common goal may not be feasible in every real-world scenario. Also, the primary and
principal HRM policies and procedures cannot be tweaked every time and as a result
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their remains a significant risk of non-alignment that may render the best fit concept
redundant and impractical at times (Jain, 2017).
Boxall and Purcell, however, have presented modified best practice approach as
primary conceived by Pfeffer and the modified best practice approach consider
employees to be the primary resource of the business and therefore those 7
prerequisites as conceived by Pfeffer earlier should form the basis of human
resource management policy of a company.
Best practice model here claims that the bundle of activities should be implemented
to achieve a competitive advantage; for example, hiring the right people is good but
the same should be supported by sufficient training. Otherwise, the primary purpose
of recruitment and selection will be vitiated. Similarly, all the seven elements are
interrelated with each other and that is why the bundle concept has been coined by
the researcher that should be implemented as a best practice to achieve competitive
advantage. Since bundles create synergy, the same further creates operational
excellence for the business for the long term (Boselie, 2016).
Summary: The section has presented a discussion on the overview of best practice
approach in a business context as compared to the best fit model.
Conclusion
The above discussion shows that the concept of HRM has always been a dynamic
one which has been changing dramatically over time. There have been several
instances where such change has been identified and observed across the society in
the globe for years. HRM functions have transformed from a purely reactive
proposition to a proactive function efficiently focusing on business strategies and
integration. In earlier days, the reactive function of HRM was limited only in
bureaucracy and administration which have now changed to a legitimate business
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activity focusing on the integration of business strategy with HRM principles. As a
result, the concept of SHRM has emerged that focuses on the alignment of HRM
policies and procedures with the business strategy (Kalyani & Chong, 2020).
Hence it may be stated that SHRM derives its importance because it focuses on
changing policies focusing on integration and matching business strategies with
HRM procedures in the backdrop of its dynamism. The static concept of best
practice may not, therefore, be constructed to be ideal at times in a real-world
scenario. However, since Pfeffer conceptualized best practice focusing on
employees, the proposition is ideal in business sustainability viewpoint. Also, the HR
professionals and management may need to understand that the focus should be
balanced and both employer and employee should be e given opportunities and
allowed to provide feedback on the policy framework so that implementation affects
both the end through achieving excellence only (Malik, 2018).
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References
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Soomro, N., & Shamsi, A. F. (2018). Measuring SHRM Vertical and Horizontal Fit:
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Veld, M. (2016). Human resource strategy. In Encyclopaedia of Human Resource
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