This is recounted with the term “best practice” and “high performance work practices”, and its underlying assumptions or arguments may seem somewhat simplistic:
- That there is a linear relationship between human resource practices or systems and organizational performance.
- That best practices are universally applicable and successful.
- That organizational success is best measured in terms of financial performance indicators like profits, or by market share and sales levels.
- Osterman” Pfeffer” and Huselid’ may be taken to represent those who bear universalistic perspective.
- Pfeffer argues, for example, that a greater use of sixteen specific practices, such as employment security, selectivity in recruiting, high wages, incentive pay, employee ownership, information sharing, participation and empowerment, teams and job-redesign, training and skills development, cross-utilization and cross-training, symbolic egalitarianism, wage compression, promotion from within, long-term perspective, measurement of practices, overarching philosophy.
- Proponents of universalistic theory believe that there is a universal practice to be remained with HRM.
- It is the best practice that any organization can adopt it anywhere and these proponents are against using culture, environment, heterogeneity of people and their behaviour.
- Therefore it is better if those proponents are classified as universalists and their ideology is as ‘universally best practice theory or universalistic theory of HRM.
- From the above argument one may deduce that attempts are made to standardize the model so that its universalistic application is envisioned.