HRM & Organizational Performance Using Best Practice Essay Example

stated by Wood in 1999). The basic premise is that particular human resource practices can improve organizational performance overall. Despite numerous studies exploring the connection between human resource management and organizational performance, it's still difficult to come up with a conclusive result based on these discoveries.

Pfeffer's (1998) study emphasizes that a crucial component of efficient human resource management and organizational success is guaranteeing job security and promoting internal career development. According to the research, offering employees a sense of employment stability alongside chances for advancement can boost their dedication, morale, and efficiency. Nevertheless, the level of job security provided may differ based on the policies and procedures implemented by each organization. Wood and Albanese (1995) proposed three different strategies that could be used to ensure employment security.

According to Pfeffer's (1998) argument, instead of resorting to layoffs and downsizing which undermines job security, companies should consider alternatives such as implementing a policy against compulsory redundancy, utilizing temporary workers, and expecting top management to retain new hires; or reducing wages to cut labor costs, freezing recruitment to address overstaffing issues. The use of is not affected by these changes.

One strategy to increase demand is to transition production workers into sales. According to Boxal (1996), selecting and retaining exceptional individuals is an effective method to gain an advantage over competitors. Wood and Albanese (1995) identified two key traits that are sought-after in recruits: commitment and...

Trainability can be measured using various proxies, including the number of applicants for a position (Delaney and Huselid, 1996), the proportion of candidates who undergo employment tests before being hired (Huselid, 1995), and the use of a thorough selection process and realistic

job preview (Hoque, 1999). Additionally, after hiring, it is important for the management to prioritize extensive training, learning, and development for new recruits to ensure they stay ahead in their field and are knowledgeable in both professional expertise and company products. This should also include training in team working and interpersonal relations (Boxal, 1996).

Marchington and Wilkinson (2005) emphasize the significance of employee involvement and voice due to several reasons, including the necessity for open communication regarding financial performance, which ensures fair treatment and positivity towards employees. Moreover, successful teamwork requires employees to have access to relevant information, enabling them to provide ideas that contribute towards organizational performance and improvement.

The involvement of employees in an organization can provide legitimacy for management actions. Best practices in human resource management have many links to organizational performance, such as self-managed teams, team working, and reduction of status differentials. Employees are more likely to welcome management involvement and information sharing if job security is ensured and there is no discrimination. The implementation of reward systems, such as performance-related incentives and share ownership, and providing employees with training opportunities can motivate them to achieve targets. Overall, best practice in human resource management can improve organizational performance through measures such as employee motivation and performance appraisals connected to compensation.

The results of using Best Practice to manage human resources and improve organizational performance are often criticized, as it is hard to determine whether the reported scores truly reflect improvements or if they are influenced by employee self-reporting. Therefore, employers and management should carefully interpret data related to labor turnover, productivity, and financial performance.

Within an organization, it is common to come

across conflicting "best-practices" in different areas. This can lead to some practices being deemed as the "worst-practice." Such inconsistency is often noticed by employees who identify and highlight differences between organizational policies and workplace practices.

Wood and de Menezes (1998) noted that there is a lack of coherence in HR activities throughout different parts of the organization. Research indicates that fragmentation, ad-hocism, and pragmatism are more prevalent than consistent, integrated, and long-term HRM packages. For instance, while one HR officer may suggest hiring someone with specific qualifications for the finance department; another department like marketing could be letting go of someone with similar qualities.

Huselid (1995) conducted a survey of 1000 organizations in the United States and concluded that best practices can be divided into two categories: 1) employee skills and organizational structures, and 2) employee motivation. Recently, there has been increased interest in the concept of best practice human resource management, which is also known as high performance work systems, high commitment human resource management, or high-involvement HRM. The idea is that certain human resource activities have the potential to improve the performance of all organizations. There are strong links between human resource management and organizational performance when utilizing best practices.

A key aspect of Best Practice is that individual practices are not effective when implemented in isolation. The most effective approach is to combine practices into a cohesive bundle.