Best Fit And Best Practice Model Of Human Resource Management

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Many say Human Resource Management (HRM) refers to manage people, but in fact HRM is much more comprehensive. It is “a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personal techniques.” (Storey, 1995). Human Resource (HR) is one of the critical factor affecting and supporting organization from financial, services and processes. Almost every aspects of business are driven by HR, hence management has to be conscientious and prudent on which HR strategies, plans and policies to implement so as to improve overall performance.

The Human Resource Management
For all organizations, HR contributes to most of the performance and goals set by the management. Which is why, HR department has to ensure that all employees
To simplify it, there are two approaches; ‘best fit’ and ‘best practice’ models.

Best fit approach is “HR policy should be minted by the appropriate context of individual employees and therefore support the overall competitive strategy. Aligning HRM practices to strategies can enable companies to create potential competitive advantages.” (Schuler and Jackson 1987 in Redman and Wilkinson 2009). This approach is customized to every businesses’ life cycle and culture; different stages having different fit. As a result, management and employees’ flexibility and adaptability have to be at high level for this to work.

Best practice approach is “HR activities exist which universally support companies in reaching a competitive advantage regardless of the organizational setting or industry.” (Redman and Wilkinson 2009). This approach has standardized sets of ‘one size fits all’ HR strategy, concentrating more on

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