Wednesday, April 3, 2013

Contrast the essential differences between the best-fit and the best-practices compensation model. Which do you think is more suitable for Egyptian organizations?

The terms beat out fit and best fargon ar used in strategic human resource attention and utilise to the specific policy area of payoff schemas. apiece approach attempts to explain the way that HR policies in world(a) and proceeds policies in particular can lead to greater organizational effectiveness.

The best fit perspective claims that a firms retaliate system should be aligned to support the organizations subscriber line dodging in order to achieve competitive advantage. Best practice advocates claim that there is a bundle of HR policies including the reward system that lead to highly motivated and committed employees who are the key to an organizations competitive advantage. There is a lack of clarity about the specific characteristics of either perspective as applied to pay model.

Lawler (1995, p. 14) states that all organizational systems must start with business strategy because it specifies what the company wants to accomplish, how it wants to behave, and the kinds of performance and performance levels it must wrangle to be effective. Business strategy, driving individual and organizational behaviors, is the beat for the development of the reward strategy.

The contingent nature of the reward system is emphasized by Lawler (1995, p.

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14) when he states, indeed the new pay is not a set of compensation practices at all, but rather a way of thinking about the role of reward systems in a complex organizationit argues against an assumption that certain best practices must be incorporated into a companys approach to pay. Indeed, he contrasts the reward system for a traditional management air with one that fosters employee involvement. The correct fit for the former includes a reward system that is job- ground with merit pay while for the latter it is skill-based with bonuses based on business success.

Schuster and Zingheim (1993, p. 6) also follow a...

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