The best practice approach

This approach is based on the assumption that there is a set of best HRM practices and that adopting them will inevitably lead to superior organizational performance.Review all reward practices to ensure that they provide value for money and do not lead to unnecessary expenditure.Purcell (1999) has also criticized the best practice or universalist view by pointing out the inconsistency between a belief in best practice and the resource-based view 
Table 9.1

Linking HR and competitive strategies

Competitive Strategy

Resourcing

Achieve competitive advantage through innovation

Achieve competitive advantage through quality

Achieve competitive advantage through cost-leadership

Achieve competitive advantage by employing people who are better than those employed by competitors

HR Strategy

Recruit and retain high quality people with innovative skills and a good track record in innovation.Develop core/ periphery employment structures; recruit people who are likely to add value; if unavoidable, plan and manage downsizing humanely

Use sophisticated recruitment and selection procedures based on a rigorous analysis of the special capabilities required by the organization.Cappelli and Crocker-Hefter (1996) comment that the notion of a single set of best practices has been overstated: There are examples in virtually every industry of firms that have very distinctive management practices...