Advantages And Disadvantages Of Best Practice And Best Fit Approach

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Introduction For Human Resource Management strategy delivery to be effective it has to be properly aligned with the organisation’s overall business strategy. Armstrong (2006) defined organisational strategy as the long-term direction or scope for which a firm would focus its limited resources to achieve specific goals targeted for the market, its clients and other stakeholders. Therefore, the alignment of human resource policies and procedures to an organisation’s overall strategy would require the consideration of crucial factors such as the firm’s short term and long term goals, availability of resources, the evolving external business environment and the varied expectations of the organisation’s stakeholders. These stakeholders include …show more content…
Such standard human resource practices have been produced by various scholars and include factors such as higher compensation, self-managing teams, continuous training to improve employee skill and morale and organisational information sharing. One major dampener of this approach is that there is no universally accepted best practice that would work effectively across all organisations especially considering the diverse organisational cultures and management styles (Boxall and Purcell, 2011).
The best fit approach ascribes to the concept that human resource strategies should be dependent on the context and circumstances surrounding an organisation at a particular time. The approach is viewed in terms of vertical alignment between the firm’s business strategy and its human resource masterplan. This approach applies models such as competitive strategy and strategic configurations (Boxall and Purcell, 2011). One major drawback of such an approach is its susceptibility to contingent determinism. That is to mean that the context necessarily dictates the strategy, which is a fallacy. Such a notion promotes the idea that the employees are free agents who are capable of making autonomous decisions and does not put into consideration the institutional forces that shape human resource

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