Best Practices Or Best Fit Essay

Length: 10 pages Sources: 10 Subject: Business - Management Type: Essay Paper: #26382787 Related Topics: Hr Practices, Performance Appraisal, Atmosphere, Employee Motivation
Excerpt from Essay :

When one considers the idea of personal expectancy into the reward system it would appear that the best fit model provides the framework to individualize reward systems in order to match the needs of and expectations of the individual employee. Expectancy theory supports that the one size fits all approach of best practices that does not result in the highest level of employee motivation. A system will only be effective if it results in a high level of innovation if the reward system happens to match an individual's values. Best fit theory supports the idea that rewards must be individualized to meet that person's specific needs of if they are to achieve maximum benefit. From the standpoint of expectancy theory it would seem as if best fit represents the most effective model.

Work Systems

Work systems refer to the processes that make up the daily business routines of the organization. The work system is dependent on the processes and represents a collection of them. Work systems are highly dependent on corporate culture and norms within the organization. The work system should reinforce the work culture. The purpose of the work system and the incentive program is to build a work atmosphere that promotes high performance, attracts the best employees, and that has ability to retain them. In order to this company has to create a culture that is conducive to these qualities. The real question when it comes to work systems and which model will be produce the greatest results I swhether work systems are static or dynamic.

In a dynamic work system environment, such as sales or product development, it would appear that the best fit method is the only model that could meet the needs of such the organization. However, what about the static system? Some business models hardly ever change, but does this mean that the best practices method will work for them? It would be easy to come to the inclusion if the system is dynamic, the best fit would be the correct choice and that best practices would fit more readily with a relatively static work system and environment. This is not always the case and if one looks at the work more closely, they will find that the individual defines the work system as much as policies and procedures. Systems change according to the employee and how their doing their jobs. The question is whether employee reward systems are more closely related to the work system itself, or whether they must cater to the individual needs of the employee, regardless of the work that they are doing. This type of work atmosphere would tend to favor the best fit the model.


The purpose of an incentive program is to motivate employees. Employees must feel that the program is equitable and that they can expect to receive fair treatment and proper reward for their efforts. Social norms within the organization also play a role in their feelings about how they have been treated with respect to others, thus affecting the effectiveness of the reward system (Festere, 2010).

The question of which model, the best fit our best practices is the better choice for human resources management is closely related to which one will have the greatest effect on positive employee motivation. Therefore, in order to answer this question, we must turn to which factors are most important in motivating employees. An examination of relevant literature found that employee involvement in the decisions surrounding their work environment had the greatest effect on stimulating ownership of the environment. Employees that felt they had some degree of control and that they played a role in determining their destiny at the company were happier and more likely to stay than those who felt that they had little ability to determine their own destiny in the work environment.

When one examines the highly competitive atmosphere of the global marketplace they will find that it is dynamic and ever changing. Some industries are affected by these characteristics more than others, but all of them must learn to compete in a dynamic environment. The dynamic


Let us consider for a moment the example of a company that wishes to attract an upper level executive that has been highly successful at another company. In order to do this they are going to have to offer a package that is much better than the one he has at the other company. This can be part of the overall company strategy.

Using this example it would appear that the best fit model is more an alignment with today's global marketplace than best practices due to its ability to adjust to changing work situations as neeeded. However, does that mean that best practices has no place in the global marketplace and the competitive environment? Best fit practices would give management the ability to adjust their practices to suit individual employees. This may be interpreted poorly by employees who might be afraid that the policies and practices show favoritism. This is where best practices would seem to have the advantage.

An examination of the differences between best practices and best fit model that can be easily summarized. Best practices that has several advantages over best fit. They include high pay that is contingent upon the performance of the entire company. This supposedly provides teamwork and a feeling of accomplishment within a higher purpose of the organization. It reduces the feeling of status and class differences within the organization because everyone has the same package. The differential packages used in the best fit model may create jealousy and feelings of a favorism. The best practices model promotes the sharing of information among employees so that they can achieve an overall higher performance, resulting in better pay and incentives for everyone.

However the best practices model has several key disadvantages as well. One of the key disadvantages is that the best practices is not as closely related to organizational strategy as the best fit model. Best practice says is universalist in nature without regard to individual differences, management practices within the organization, industry wide management practices, or corporate culture. Often the policies that result from the best practices that are general in nature and they can be interpreted in several different ways. This creates potential for miscommunication and ill feelings that could undermine the employee motivation and organizational performance. Employees are not as likely to feel connected to policies that are universal as they are with policies that that are based on their own personal preferences. This dramatically reduces the effectiveness of the best practices model.

The advantages of the best fit model are that it can change in response to market and company needs. This is particularly important in a recession or in times of financial strain (Dauda & Akindbade, 2010). It is easier to write a policy that specifically addresses the needs of every employee and motivational strategies that will work for them. It is associated with the highest retention rate and ability to attract employees because it can be adjusted to make the package more competitive. However, best fit practices can be seen as discriminatorily due to a lack of consistency between packages offered to employees. The success of this model depends on the ability of employees to avoid discussing their pay packages, but in reality this is hardly ever the case.

The question is whether best practices represents an old and outdated way of thinking, as opposed to best fit which represents a newer model for doing business. In our examination of the positive and negative aspects of each of these models it became clear that neither one was better than the other. It appears that the best fit model is more an alignment with the future needs of organizations that want to compete in the global marketplace. It allows companies to adjust and attract the best and brightest. However, the best practice model could offer a solid base upon which to build best fit policies. Best practices could be used to lay a foundation and offer guidance in the development of best fit practices. It does not have to be an all or none approach and companies can take the best aspects of each model and use them to build a new model that reflects not just a compromise, but a strategic combination of these two practices in such a way that new models would have both the foundation and would be able to adjust to the dynamic needs of the changing work environment.

It would appear that at this time of the best fit model is more appropriate for todays changing work environment and continually changing competitive atmosphere. Businesses must be able to adjust to the dynamic environment. Today's business world emphasizes the importance of business strategy and alignment with strategic goals. In…

Sources Used in Documents:


Boxall, P. And Purcell, J. 2000. Strategic human resource management: where have we come from and where should we be going? International Journal of Management Reviews, 2(2), p. 183-203.

Dauda, Y., & Akingbade, W. 2010. Employee Incentive Management and Financial Participation in the Nigerian Banking Industry: Problems and Prospects. European Journal

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Donnelly, J. 2009. Massaging employee health: Financial incentives change behaviors, experts say. Premium content from Boston Business Journal [online] Available from: [accessed 25 January 2011].
Gordon, a. & Kaswin, J. 2010. Effective Employee Incentive Plans: Features and Implementation Processes. Cornell Review. [online] Available from: / [accessed 25 January 2011].
Hasan. 2009. The Best HR Practices That Successful Companies Practice! 17 April 2011. Directory Journal. [online] Available from: . / [accessed 25 January 2011].
Motivation in Commercial Banks of Pakistan. Research Journal of Internat-onal Stud-es. Issue 14. . [online] Available from: [accessed 25 January 2011].
Mathibe, I. 2008. Expectancy Theory and its implications for employee motivation. 6 (3). [online] Available from: [accessed 25 January 2011]. [accessed 25, January 2011]
Schrader, M. & Becton, J. 2011. An Overview of Recent Trends in Incentive Pay Programs. Montgomery. The Coastal Business Journal. 2 (1). [online] Available from: [accessed 25 January 2011].

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