HRM and Best Practices

A literature review identifies that Best Practice is context specific, and can be considered as: “A set of practices and processes that when used in different combinations depending on the context, lead to superior results and help the firm work towards meeting its strategy”. This research attempts to identify visible links between observed HRM practices (in four specific areas) and the contemporary view of best practice. The four studied areas of HRM are: Recruitment and Selection, Employee Development, Employee Reward, and Performance Management. The practices of six organisations were reviewed and found to be varied and to meet Best Practice in only certain areas. It was also noticed that Best Practice is a set of systems, which needs to be used in different combinations depending on the context. Key determinants of the context are the role of the HR function in the business, the size of the firm and the management style in terms of employee relations. Best Practice is applicable to all companies. However, it takes different forms, and success is determined by the skills with which it is implemented.