Organizations often try to implement a best practice or a best fit approach to strategic human resource management but can fall short if not utilized properly. A best practice approach would suggest that a set of universal practices could be applied to various different organizations in various different trades. On the other hand, a best fit approach to strategic human resource management would suggest that different practises would need to be put into play depending on different variables such as company culture, processes and external environmental factors.
A best practice approach could be beneficial to an organizations attempt of strategic HRM as it would help the organization to make a profit and to obtain their long-term goals. In order to ensure that they are using a best practice approach, the organization would need to make strategic changes to the recruitment and selection process, rewards, training and to ensure that employees remain motivated and committed. A best practice approach could also be beneficial to strategic human resource management as best practice activities often strive to improve overall performance of an organization by selecting key best practices that may better the company such as training, appraisal and reward systems. A best practice approach may also be beneficial to an organization in terms of finding a solution, as the best practice approach is more universal, the solutions are proven to have been successful with other companies.
The best fit approach to strategic HRM would entail ensuring that human resource practices also align with the business’ overall strategies. As opposed to the best practice approach, a best fit approach may be considered more beneficial to strategic human resource management because it acknowledges the inevitability of uncertainty within the internal and external environment. The main difference between the best fit and best practice approach is that the best fit approach often looks at the current state of the company and designs a strategic human resource model around that. As opposed to the best practice approach, a best fit approach may be of more benefit to some companies as not all companies are the same as not all companies are “one size fits all”. For instance, some practices that may work for a salesman, such as performance appraisal based on sales performance, may not be relevant for workers in a hospital. A best fit approach would also be beneficial to a company in terms of change, because the economy and environmental factors are always ever changing, a best fit approach would have the upper hand in ensuring a company is being proactive, as opposed to reactive to such change.
Both of the best practice and best fit approaches influence human resource professionals as these approaches effect strategic human resource management. Firstly, a best practice approach would involve human resource practitioners to identify a list of core practices and how they are to be integrated into the company. This could involve human resource professionals being responsible for such practices that can include training, job evaluations, selective hiring, employment security and performance appraisals. All of these practices directly involve the human resource processes and therefore will impact human resources professionals and their everyday procedures.
A best fit approach would also influence human resource professionals. As a best fit approach implements activities based on corporate need and circumstances both within and outside of the company this would involve a human resource professional being aware of everything happening with the company both internally and externally. This would require an HR professional to have to analyse the company by using environmental analysis and determining opportunities of strength, weaknesses, opportunities and threats. The best fit approach would also influence human resource professionals as they would be involved