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7 Human Resource Best Practices
Learn about what 7 Human Resource best practices entail, why they are so crucial for your organization, and how you can implement them!
7 Human Resource Best Practices (A mini-guide to HRM)
7 Human Resource Best Practices…
Posted by Erik van Vulpen
HR has considerably evolved in the past decades and continues to do. Yet, core human resource best practices have persisted, serving as guidelines for HR professionals over the years. But what do they entail, and why are they so important? In this article, we’ll go over the 7 best practices for HR. These are crucial to effective human resource management.
1. Human Resource best practices
2. Seven HR Best Practices
2.1 Providing security to employees
2.2 Selective hiring: Hiring the right people
2.3 Self-managed and effective teams
2.4 Fair and performance-based compensation
2.5 Training in relevant skills
2.6 Creating a flat and egalitarian organization
2.7 Making information easily accessible to those who need it
3. Synergies between HR best practices: Bundles
4. Human Resource Management best practices: a reality check
Human Resource best practices
The first question is: what are Human resource best practices?
Best practices are a set of Human Resources Management processes and actions that work universally. In HRM research, there are two schools of thought on how to manage people. The first one is the best fit, the second is best practices.
The best fit school states that to add value, human resource policies should align with business strategy. This means that HR should focus on both the needs of the organization and the ones of its employees.
The best practice school argues that there is a set of universal HR processes that lead to superior business performance. According to its proponents, there are certain bundles of HR activities that support companies in reaching a competitive advantage regardless of the organizational setting or industry (Redman & Wilkinson, 2009).
We’ll skip the extensive scientific debate on the merits and flaws of each approach. With these kinds of discussions, the truth often lies somewhere in the middle.
This means that the HR strategy and subsequent HR activities should be aligned with the organization’s strategy for optimum efficiency (a.k.a. strive for best fit). In literature, this alignment has also been referred to as Strategic Human Resource Management.
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At the same time, there are a large number of best practices that have shown to lead to superior performance for the organization. If HR executes these practices correctly, they will add substantial value to the business and its goals (a.k.a. implement best practices).
These best practices are applied to different HR functions such as performance management and learning and development.
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Seven HR best practices
The 7 Human Resource best practices presented below have been proposed by Jeffrey Pfeffer. Pfeffer wrote two books on this topic:
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Competitive Advantage through People (1994), and
The Human Equation: Building Profits by Putting People First (1998)
In these books, he proposes a set of best practices that can increase a company’s profit. When these HR principles are combined (or bundled), their impact is even more profound.
These best practices are:
Providing security to employees
Selective hiring: Hiring the right people
Self-managed and effective teams
Fair and performance-based compensation
Training in relevant skills
Creating a flat and egalitarian organization
Making information easily accessible to those who need it
We’ll go over them one by one.
1. Providing security to employees
The first Human Resource best practice is employment security. Life is unpredictable and work is a stable factor that is very important to most people. Having an employer who enables the employee to provide for themselves and their family is, in essence, the number one reason why people come to work.
There is both a formal contract (labor for money) and an informal contract (you put in some extra effort, we take good care of you) between the employee and the employer. Employment security enables employees to go home after work and provide for themselves and their families. This concept of security is essential and underpins almost everything HR does.
When this employment security is threatened, for example when there is a restructuring or a layoff, you see this immediately ripple through the organization.
Employment security also benefits organizations because it helps them retain their people. When employees are laid off, for example, it’s usually the organization that pays the price. They are the ones who have invested in the selection, training, and development of these employees. This is a costly process. If the organization doesn’t work on retaining its people, they are more likely to leave and work for the competition.
The essence of ________ is that organizational culture, structure, and hr practices must align to achieve the company’s strategies. – Let's Answer The World!
29 OCTOBER 2021 BY LETS TOKMAK
The essence of ________ is that organizational culture, structure, and hr practices must align to achieve the company’s strategies.
the essence of ________ is that organizational culture, structure, and hr practices must align to achieve the company’s strategies.
Strategic Human Resource Management: Definition & Importance
Strategic human resource management is a process of attracting and retaining employees in ways that benefit the employee as well as the entire...
Strategic Human Resource Management: Definition & Importance
Instructor: Katryn Stewart
Strategic human resource management is a process of attracting and retaining employees in ways that benefit the employee as well as the entire organization. Learn how techniques like recruitment, training, and compensation can increase organizational success. Updated: 11/29/2021
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Human Resource Management
The best way to understand strategic human resources management is by comparing it to human resource management. Human resource management (HRM) focuses on recruiting and hiring the best employees and providing them with the compensation, benefits, training, and development they need to be successful within an organization. However, strategic human resource management takes these responsibilities one step further by aligning them with the goals of other departments and overall organizational goals. HR departments that practice strategic management also ensure that all of their objectives are aligned with the mission, vision, values, and goals of the organization of which they are a part.
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Strategic Human Resource ManagementStrategic human resource management is the practice of attracting, developing, rewarding, and retaining employees for the benefit of both the employees as individuals and the organization as a whole. HR departments that practice strategic human resource management do not work independently within a silo; they interact with other departments within an organization in order to understand their goals and then create strategies that align with those objectives, as well as those of the organization. As a result, the goals of a human resource department reflect and support the goals of the rest of the organization. Strategic HRM is seen as a partner in organizational success, as opposed to a necessity for legal compliance or compensation. Strategic HRM utilizes the talent and opportunity within the human resources department to make other departments stronger and more effective.
Importance of Strategic HRM
When a human resource department strategically develops its plans for recruitment, training, and compensation based on the goals of the organization, it is ensuring a greater chance of organizational success. Let's think about this approach in relation to a basketball team, where Player A is the strategic HR department, and Players B through E are the other departments within the organization. The whole team wants to win the ball game, and they all may be phenomenal players on their own, but one great player doesn't always win the game. If you've watched a lot of sports, you understand that five great players won't win the game if each one of those five great players is focused on being the MVP.
That's not how a basketball team wins, and it's not how an organization wins either. A team wins when its members support each other and work together for a common goal. Player A, our strategic HR department, must work with players B, C, D and E, our different organizational departments. They must run plays that they have planned out beforehand, assist when necessary to help another player get the basket, and compensate for the weaknesses of one in order to create a stronger team as a whole. When a team works together to reach that common goal, only then can they be truly successful.
You could also look at strategic HRM as the team captain or coach, as his or her responsibilities are a little bit different from those of the other players. Human resources departments are charged with analyzing the changes that need to occur with each 'player' or department and assisting them in strengthening any weaknesses. Strategic human resource management then is the process of using HR techniques, like training, recruitment, compensation, and employee relations to create a stronger organization, one employee at a time.
Example of Strategic HRM
Suppose a customer service department is really struggling with turnover and retention. As a result, its customers are complaining about a lack of knowledge or assistance when they contact the department. This in turn is affecting repeat orders and having a dramatically negative affect on sales, causing the company to lose money.
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Business / Human Resource Management: Help and Review
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