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The Universalistic theory

This is recounted with the term “best practice” and “high performance work practices”, and its underlying assumptions or arguments may seem somewhat simplistic:

  1. That there is a linear relationship between human resource practices or systems and organizational performance.
  2. That best practices are universally applicable and successful.
  3. 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.

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