Critically evaluate the best practice approach to HR strategic decision making, drawing on relevant
research in support of your answer.
The definition of best practice can be defined by Wood(1995), as a set of universal HR practices that
are relevant to all organizations regardless of specific strategies that aid the organisation to achieve
optimal performance. Best practice(BP) highlights the relationship between sets of good HR
practices and organisational performance such as employee commitment. However, Boxall and
Purcell(2008), argue there is debate on what constitutes a best practice, as it is much easier to
identify bad practices and difficult to create a consensus on good practices (Redman and Wilkinson
2009).
The benefits of using the BP approach when making HR decisions, are outlined by Pffer(1998) who
found seven BP that were present in successful organisations for example extensive training, this is
examined by Boxall(1996), who found that human capital that was trained led to a source of
sustained competitive advantage as employers had the ability to introduce skills specific forms of
training in areas where they had shortages. This is useful for the HR decision making, as they can
allocate resources appropriately. Additionally, another key practice is of sharing information, as by
having open communications across the organisation conveys strong signals that employees are
valued and trusted. This is important for HR decision making, as if team work is to be successful this
encourages a supportive climate in which they can have a voice to share their ideas.
Secondly, BP can operate as bundles of complementary HR practices in the form of high
performance work practice (HPWP). From a business case perspective, the use of HPWP illustrated
by Huselid(1995), found that these bundles helped to yield superior performance and outcomes in
the form of lower turnover, increased financial performance and productivity. Similarly, Delery and
Doty(1996), identified HPWPs consisting of appraisals, training and career opportunities. Thus, it can
be observed that HPWPs are practices that address the employment relationships and the HR
policies guiding such relationships, these are vital components in HR strategic decision making.
However, there are some criticisms of this approach, one being that it is difficult to establish the
right number and which particular practices in the bundle leads to the positive outcome. This is
problematic for managers when making strategic decisions as there could be some practices which
could have little or no effect.
Conversely, there are wider criticisms associated with BP in general. For example, a criticism on self-
managed teams could be that they tend to be intrusive and difficult to implement in practice and
they serve to strengthen management control, thus is regarded as an alternative form of
control(Marchington and Grugulis,2000). Additionally, Barker(1993) disputes that there is a shift of
control from management to workers, and this ‘concertive control’ is passed amongst in the form of
peer pressure. Lastly, another criticism of BP is that is too static e.g. employment security is a
practice that cannot always be offered such as during the current pandemic this form of BP is not
one that all employers can achieve. Thus, BP tend to lack the flexibility to cope with unforeseen
circumstances, thus whether they are effective in contributing to HR decision making is
questionable.
research in support of your answer.
The definition of best practice can be defined by Wood(1995), as a set of universal HR practices that
are relevant to all organizations regardless of specific strategies that aid the organisation to achieve
optimal performance. Best practice(BP) highlights the relationship between sets of good HR
practices and organisational performance such as employee commitment. However, Boxall and
Purcell(2008), argue there is debate on what constitutes a best practice, as it is much easier to
identify bad practices and difficult to create a consensus on good practices (Redman and Wilkinson
2009).
The benefits of using the BP approach when making HR decisions, are outlined by Pffer(1998) who
found seven BP that were present in successful organisations for example extensive training, this is
examined by Boxall(1996), who found that human capital that was trained led to a source of
sustained competitive advantage as employers had the ability to introduce skills specific forms of
training in areas where they had shortages. This is useful for the HR decision making, as they can
allocate resources appropriately. Additionally, another key practice is of sharing information, as by
having open communications across the organisation conveys strong signals that employees are
valued and trusted. This is important for HR decision making, as if team work is to be successful this
encourages a supportive climate in which they can have a voice to share their ideas.
Secondly, BP can operate as bundles of complementary HR practices in the form of high
performance work practice (HPWP). From a business case perspective, the use of HPWP illustrated
by Huselid(1995), found that these bundles helped to yield superior performance and outcomes in
the form of lower turnover, increased financial performance and productivity. Similarly, Delery and
Doty(1996), identified HPWPs consisting of appraisals, training and career opportunities. Thus, it can
be observed that HPWPs are practices that address the employment relationships and the HR
policies guiding such relationships, these are vital components in HR strategic decision making.
However, there are some criticisms of this approach, one being that it is difficult to establish the
right number and which particular practices in the bundle leads to the positive outcome. This is
problematic for managers when making strategic decisions as there could be some practices which
could have little or no effect.
Conversely, there are wider criticisms associated with BP in general. For example, a criticism on self-
managed teams could be that they tend to be intrusive and difficult to implement in practice and
they serve to strengthen management control, thus is regarded as an alternative form of
control(Marchington and Grugulis,2000). Additionally, Barker(1993) disputes that there is a shift of
control from management to workers, and this ‘concertive control’ is passed amongst in the form of
peer pressure. Lastly, another criticism of BP is that is too static e.g. employment security is a
practice that cannot always be offered such as during the current pandemic this form of BP is not
one that all employers can achieve. Thus, BP tend to lack the flexibility to cope with unforeseen
circumstances, thus whether they are effective in contributing to HR decision making is
questionable.
