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Best Practice Approach to HRM

Best Practice Approach to HRM. Best Practices Approach-Central Argument. Application of a universal set of HR Practices results in superior organisational performance Called best HRM practices, HPWP, High-Involvement Practices, High Commitment Practices. Best Practices.

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Best Practice Approach to HRM

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  1. Best Practice Approach to HRM

  2. Best Practices Approach-Central Argument • Application of a universal set of HR Practices results in superior organisational performance • Called best HRM practices, HPWP, High-Involvement Practices, High Commitment Practices

  3. Best Practices • USDL(93)- 8 features • Pfeffer (94)- 7 features • Patterson et al (97)- 12 features • Guest (99)- 5 features • CIPD (03)- 13 features • Mess H (04)- 15 features (5 core ones) • Training and development • Teamwork • Employee Selection • Performance Appraisal • Communication

  4. Common features of HPWP’s • High Levels of teamwork • Performance-related pay • Decentralised decision making • Comprehensive recruitment & selection • Limited status difference • Extensive training • Employee involvement & internal communication • Internal career opportunities • Broadly defined job descriptions Theriou & Chatzoglou (2008)

  5. HPWP’s and Performance • HPWP improve organisational performance through three routes: • By increasing employee skills and abilities • By promoting positive attitudes, increasing motivation and promoting discretionary behaviour • By providing employees with opportunities at work to make full use of their skills and abilities • (Prucell et al 2003)

  6. Bundles of HR Practices • Bundling or configurational approach • “..emphasise the need for particular sets of people management practices to be mutually consistent, mutually supportive and reinforcing..” (MacDuffe 1995) • Horizontal integration • “..organisations stand to gain potentially attractive payoffs when adopting integrated clusters or bundles of HR practices..” Robinson (2007)

  7. Bundling Approach • Considerable research support • America –Huselid (1995) (Intergrated practices, cohesive and mutually supportive brought positive results) • Europe (UK)- Patterson et al (1997) HR practices explained 18/19% variations in productivity/ profitability • Asia-Pacific-Bae et al (2003) high performance work practices significantly improve organisational performance

  8. Key Lessons • Acquisition and development of skills (induction, training, selection and appraisal processes)- • Job design (job variety, responsibility, skill flexibility team work)

  9. Contradictions • Which practices comprises the Universal set? • Little testing of internal fit • Why do smart organisations occasionally do dumb things? • What constitute best practice within different organisational context • Need to look at whole range of HRM choices and processess in the context of external and internal environment • Prucell 1999

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