The ‘best-practice’ theory is based on the premise that HR patterns observed in high-performing houses can be transformed to other companies with the same consequences.
Pfeffer’s list of seven HR patterns for competitory advantage through people is one of the best known set of best-practices. It is said when adopted will take to better concern public presentation.
Employment security and internal labor markets
Selective hiring and sophisticated choice
Extensive preparation. acquisition and development
Employee engagement. information sharing and worker voice- Sharing information Self-managed teams/teamworking
High compensation contingent on Company public presentation
Decrease of position differentials/harmonisation – Reduction of position differences The thought is that a peculiar package of HR patterns has the possible to lend improved employee attitudes and behaviors. lower degrees of absenteeism and labour turnover. and higher degrees of productiveness. quality and client service. This. it is argued. has the ultimate consequence of bring forthing higher degrees of profitableness.
HR Practices embracing scheme. suiting horizontally and vertically into the concern.
Since the HR patterns that purportedly contribute to an improved bottom line public presentation are by and large perceived as ‘good’ for workers – for illustration. employment security. preparation and development. information and audience. and higher degrees of wage – this looks like an attractive scenario for employers and workers likewise.
In kernel. recruiting and retaining talented. team-oriented. extremely motivated people is seen to put a footing for superior concern public presentation or competitory advantage. But this theory. like several other cosmopolitan theoretical accounts. has been criticised for a assortment of grounds:
• Disconnection from company’s ends and context
• Disregard of national differences such as direction patterns and civilization Inconsistency between the RBV’s accent on in-imitability and best-practice universalism
Although best-practices are excessively general. some research workers have found empirical grounds demoing a correlativity between the application of best-practice theories and company’s public presentation. The ground can be seen in the cogency of the underpinning “AMO” ( ability. motive. chance ) model.