Althoughnumerous changes have occurred in the business environment, employeesare still considered as the most critical assets that anyorganization can have. However, organizations have the primaryresponsibility of connecting human resources with the competitivenessas well as the success of the organization. Strategic management ofhuman resources is a complex process that is used by differentorganizations to enhance their performance continuously (Hsieh &Chen, 2011). In this paper, the best fit approach will be comparedwith the best practices approach. The paper will also focus on theapplication of the compensation and the business strategies atBristol-Meyers Squibb.
Bestfit or best practices
Thebest fit and the best practice approach are two competing strategiesthat can be applied in the field of human resource management.Organizations adopt either of these strategies with valid reasons.For example, organizations that apply the concept of best practicesbelieve that there exists a set of practices that can be used in allcontexts to enhance employee performance (Hsieh & Chen, 2011).However, the impact of these practices on performance is felt whenthey are packaged together in order to harmonize and balance eachother. This creates synergy between the best practices. This strategycovers different prescriptive models, such as high-involvement,high-commitment, mutual gains, and high-performance models, all ofwhich can be universally applied in all organizations.
Thebest fit perspective, on the other hand, opposes the idea ofuniversality of the human resource management practices. The best fitapproach is founded on the notion that various human resourcemanagement strategies should be applied in different circumstances(Hsieh & Chen, 2011). This implies that each strategy that ahuman resource manager selects should be able to focus and address aspecific employee or organization’s need. Each organization shouldbe able to study what works in its settings and what does not work.
Thetwo models can be applied in the management of human resources, butthere are two factors that make the best fit approach more superiorto the best practices perspective. First, organizations operate indifferent contexts, which imply that each of them require a differentset of human resource management practices that suit its uniqueneeds. Secondly, the best fit approach gives human resource managersthe opportunity to make decisions regarding the practices that areapplicable to the organization (Hsieh & Chen, 2011). This expandstheir range of good judgment regarding the human resource practices,unlike the case of the best practices where they are required toadopt a set of pre-determined practices.
Acompensation strategy for Bristol-Meyers Squibb
Objectives:Bristol-Meyers Squibb is a multinational pharmaceutical company thatseeks to develop global leaders at all levels. In addition, thecompany reinforces a team-based culture, which is an effectivestrategy for enhancing the performance of its workforce. Moreover,Bristol-Meyers Squibb aims at increasing productivity and reducingthe cost at the same time.
Internalalignment: The functional of internal alignment is the comparison ofskill or job levels within a single organization (Adewale &Anthonia, 2013). Bristol-Meyers Squibb focuses on enhancingflexibility in order to facilitate growth and development. Apersistent growth of the company can be attributed to the ability ofthe management to adopt the required competencies andresponsibilities that impact the business.
Externalcompetitiveness: This refers to compensation relationships that areexternal to an organization under consideration (Adewale &Anthonia, 2013). Bristol-Meyers Squibb compares favorably with itstop competitors, including Johnson & Johnson, Navartis AG, andPfizer, Inc. among others. Bristol-Meyers Squibb also has a cash ofbetween 50thand 70thpercentile, which is an indication of its competitiveness.
Employeecontributions: A relative emphasis is placed on the performance ofemployee (Adewale & Anthonia, 2013). The success of theteam-based approach at Bristol-Meyers Squibb can be attributed thewillingness of the employees to work in teams. In addition,Bristol-Meyers Squibb’s employees support a high performance andleadership culture.
Management:An employee compensation system can only work effectively if it ismanaged properly (Adewale & Anthonia, 2013). Bristol-MeyersSquibb applies the concept of performance and leadership feedback,where every member of staff is considered to be a leader. Members ofstaff are allowed to make certain decisions, which makeadministration easier.
Bristol-MeyersSquibb’s business strategy
Themost important business strategy applied by Bristol-Meyers Squibb iscost cutting. The management aims at increasing productivity andreducing the cost of manufacturing drugs in order to increase thecompany’s capacity to sell at a lower price and compete fairly withother players in the industry (Hashem, Harmid & Samira, 2012).This is achieved by combining the resources and the reach of a majorpharmaceutical firm with the agility as well as the entrepreneurialspirit of a successful biotechnology organization. This helpsBristol-Meyers Squibb focus on the specific needs of its clients,increase growth in sales, and manage costs.
Boththe best fit and the best practice approaches are applicable in themodern business environment. However, the best fit approach helpsorganizations adopt human resource management practices that aresuitable for their specific business settings. Some of the keycompensation strategies that have contributed towards the success ofBristol-Meyers Squibb include a focus on team-based culture, anincrease in flexibility, ability to compete fairly with otherplayers, employee contribution towards the success of the team-basedculture, and the use of a leadership feedback strategy in themanagement of human resources. In addition, the use of a cost cuttingbusiness strategy has allowed Bristol-Meyers Squibb to reduce thecost of production, thus increasing its competitiveness andprofitability.
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