| Introduction | | | | Best practice as a human resource and development |
| Best practice as a human resource and development | | | | strategy attempts to link two issues i.e. human |
| strategy attempts to link two issues i.e. human | | | | resource strategies and competitive advantage. This |
| resource strategies and competitive advantage. This | | | | perspective is founded on the belief that human |
| perspective is founded on the belief that human | | | | resource and development strategies can cause |
| resource and development strategies can cause | | | | employees to become committed and highly motivated |
| employees to become committed and highly motivated | | | | towards their organisation. Consequently, such |
| towards their organisation. Consequently, such | | | | employees are expected to contribute towards |
| employees are expected to contribute towards | | | | improvement of the company's performance. Reward |
| improvement of the company's performance. Reward | | | | systems form a critical part of best practice policy |
| systems form a critical part of best practice policy | | | | because they still fall under human resource strategies. |
| because they still fall under human resource strategies. | | | | The organisation to be examined is John Lewis |
| The organisation to be examined is John Lewis | | | | Partnership. This company is a worker co-op. It is one |
| Partnership. This company is a worker co-op. It is one | | | | of the most exemplary companies when it comes to |
| of the most exemplary companies when it comes to | | | | implementation of best practice strategies. This is |
| implementation of best practice strategies. This is | | | | because all the employees within the organisation are |
| because all the employees within the organisation are | | | | part owners of the organisation. The organisation |
| part owners of the organisation. The organisation | | | | focuses on addressing all their needs whether in the |
| focuses on addressing all their needs whether in the | | | | reward section or elsewhere. On the other hand, the |
| reward section or elsewhere. On the other hand, the | | | | employees pay back these efforts through |
| employees pay back these efforts through | | | | commitment and best performance. Best practice has |
| commitment and best performance. Best practice has | | | | formed one of the organisation's key strengths. |
| formed one of the organisation's key strengths. | | | | Strategic capability and degree of sophistication of the |
| Strategic capability and degree of sophistication of the | | | | strategic Human resource and development effort |
| strategic Human resource and development effort | | | | John Lewis partnership has made sure that training is |
| John Lewis partnership has made sure that training is | | | | part of its human resource and development efforts. |
| part of its human resource and development efforts. | | | | This is because it realises the value of this best |
| This is because it realises the value of this best | | | | practice strategy. Pfeffer and Velga (1999) explain the |
| practice strategy. Pfeffer and Velga (1999) explain the | | | | importance of training and development of skills within |
| importance of training and development of skills within | | | | any organisation. A company that takes its employees |
| any organisation. A company that takes its employees | | | | through training solidifies their contribution to the |
| through training solidifies their contribution to the | | | | company. This is because such employees get |
| company. This is because such employees get | | | | equipped with the ability to make decisions in their |
| equipped with the ability to make decisions in their | | | | work. On top of this, such employees have high levels |
| work. On top of this, such employees have high levels | | | | of initiative and will try their utmost best to improve |
| of initiative and will try their utmost best to improve | | | | their organisational contribution. Skill development is a |
| their organisational contribution. Skill development is a | | | | characteristic part of the John Lewis Partnership |
| characteristic part of the John Lewis Partnership | | | | because employees who feel the need to improve |
| because employees who feel the need to improve | | | | their skills are given opportunities to do so through |
| their skills are given opportunities to do so through | | | | training schemes. |
| training schemes. | | | | Youndt et al (1996) emphasise that training is one of |
| Youndt et al (1996) emphasise that training is one of | | | | the most fundamental aspects of best practice |
| the most fundamental aspects of best practice | | | | models. However, these same authors also add that |
| models. However, these same authors also add that | | | | training should be integrated into other development |
| training should be integrated into other development | | | | activities like staffing, job rotation and others. They |
| activities like staffing, job rotation and others. They | | | | claim that no amount of training will contribute towards |
| claim that no amount of training will contribute towards | | | | organisational development if employees are not |
| organisational development if employees are not | | | | granted the permission to practice those acquired skills. |
| granted the permission to practice those acquired skills. | | | | This means that an organisation should try its best to |
| This means that an organisation should try its best to | | | | grant work autonomy to its employees and to |
| grant work autonomy to its employees and to | | | | empower them through training. John Lewis has |
| empower them through training. John Lewis has | | | | achieved this very well. In other retail companies, line |
| achieved this very well. In other retail companies, line | | | | managers are given minimal responsibilities. Most of |
| managers are given minimal responsibilities. Most of | | | | them are expected to consult with higher authorities in |
| them are expected to consult with higher authorities in | | | | order to decide on issues. However, the company |
| order to decide on issues. However, the company | | | | under study has eliminated that problem by training |
| under study has eliminated that problem by training | | | | those members of staff (so that they can have |
| those members of staff (so that they can have | | | | necessary skills) and then allowing them to make |
| necessary skills) and then allowing them to make | | | | independent decisions. They believe that this is a form |
| independent decisions. They believe that this is a form | | | | of investment into human capital since most of these |
| of investment into human capital since most of these | | | | employees feel valued. |
| employees feel valued. | | | | According to the Classical and Human relations |
| According to the Classical and Human relations | | | | approach, an organisation's structure and operation are |
| approach, an organisation's structure and operation are | | | | affected by certain situational factors such as |
| affected by certain situational factors such as | | | | technology, size and environment. However best |
| technology, size and environment. However best | | | | practice advocates like Burnes (2000) came up with a |
| practice advocates like Burnes (2000) came up with a | | | | contingency theory. He believes that a reward system |
| contingency theory. He believes that a reward system | | | | within any company can affect the way it operates or |
| within any company can affect the way it operates or | | | | how it is structured. Pfeffer (1994) believes that best |
| how it is structured. Pfeffer (1994) believes that best | | | | practice companies should have a structure that |
| practice companies should have a structure that | | | | places staff members into groups. Those groups |
| places staff members into groups. Those groups | | | | should be such that they have the ability to make their |
| should be such that they have the ability to make their | | | | own decisions. Another aspect of best practise firms |
| own decisions. Another aspect of best practise firms | | | | is that they ought to have reward systems that are |
| is that they ought to have reward systems that are | | | | compact in nature. This implies that there should be |
| compact in nature. This implies that there should be | | | | minimal differences between different members of |
| minimal differences between different members of | | | | staff so that most employees within the organisation |
| staff so that most employees within the organisation | | | | operate in a relatively independent manner with the |
| operate in a relatively independent manner with the | | | | ability to make their own decisions. John Lewis' |
| ability to make their own decisions. John Lewis' | | | | strategic capability in this aspect of structure is |
| strategic capability in this aspect of structure is | | | | demonstrated by the division of the company into |
| demonstrated by the division of the company into | | | | departments. These departments work together to |
| departments. These departments work together to | | | | achieve gaols and have been granted relative |
| achieve gaols and have been granted relative | | | | autonomy. One can consider them as teams. Also, the |
| autonomy. One can consider them as teams. Also, the | | | | company gives almost equal rewards to all members |
| company gives almost equal rewards to all members | | | | of the teams. One can therefore conclude that the |
| of the teams. One can therefore conclude that the | | | | company's structure is a clear depiction of its best |
| company's structure is a clear depiction of its best | | | | practise strategy. (Pfeffer, 1994) |
| practise strategy. (Pfeffer, 1994) | | | | Why and whether human resource strategy is seen |
| Why and whether human resource strategy is seen | | | | as adding value |
| as adding value | | | | Best practice strategies have definitely added value to |
| Best practice strategies have definitely added value to | | | | the organisation. This is because the approach has |
| the organisation. This is because the approach has | | | | motivated performance within the organisation. |
| motivated performance within the organisation. | | | | According to the Equity and expectancy theories |
| According to the Equity and expectancy theories | | | | (main components of the best practice model) put |
| (main components of the best practice model) put | | | | forward by Adam (1965). It can be seen that there are |
| forward by Adam (1965). It can be seen that there are | | | | two aspects in motivation. The first is the input made |
| two aspects in motivation. The first is the input made | | | | by an employee and the second is outcome which |
| by an employee and the second is outcome which | | | | normally comes from the respective organisation. The |
| normally comes from the respective organisation. The | | | | ratio between these two aspects needs to be equal |
| ratio between these two aspects needs to be equal | | | | otherwise employees will loose motivation to perform. |
| otherwise employees will loose motivation to perform. | | | | This is where the term negative inequity stems from. |
| This is where the term negative inequity stems from. | | | | Here, an employee's input is not matched to outcome |
| Here, an employee's input is not matched to outcome | | | | from the organisation. There is a need for justice to be |
| from the organisation. There is a need for justice to be | | | | administered in this area otherwise employees will lack |
| administered in this area otherwise employees will lack | | | | motivation. |
| motivation. | | | | Hertzberg (2001) came up with a two factor model to |
| Hertzberg (2001) came up with a two factor model to | | | | illustrate the importance of performance motivation as |
| illustrate the importance of performance motivation as | | | | part of best practice strategy. He asserted that |
| part of best practice strategy. He asserted that | | | | factors causing job satisfaction were quite different |
| factors causing job satisfaction were quite different | | | | from those ones causing job dissatisfaction. He places |
| from those ones causing job dissatisfaction. He places | | | | more emphasis on factors that cause job satisfaction |
| more emphasis on factors that cause job satisfaction | | | | such as the nature of work, responsibilities in the |
| such as the nature of work, responsibilities in the | | | | workplace and recognition of achievement. This is |
| workplace and recognition of achievement. This is | | | | something that is quite different from simply increasing |
| something that is quite different from simply increasing | | | | salaries. Pay can be considered as a factor that can |
| salaries. Pay can be considered as a factor that can | | | | cause job dissatisfaction and should be dealt with so |
| cause job dissatisfaction and should be dealt with so | | | | as to have time to concentrate on other important |
| as to have time to concentrate on other important | | | | aspects. This is the reason why John Lewis does not |
| aspects. This is the reason why John Lewis does not | | | | simply increase employees' salaries. It appreciates |
| simply increase employees' salaries. It appreciates | | | | achievement and places more emphasis on the latter |
| achievement and places more emphasis on the latter | | | | rather than the former. This is the reason why its best |
| rather than the former. This is the reason why its best | | | | practice strategies have added value to the company. |
| practice strategies have added value to the company. | | | | John Lewis realised that payments simply alter |
| John Lewis realised that payments simply alter | | | | behaviour but do not change the attitudes causing |
| behaviour but do not change the attitudes causing | | | | these behaviours as stated by Kohn (1993). |
| these behaviours as stated by Kohn (1993). | | | | Kohn (1993) and Pfeffer (1998) solidify this stand point |
| Kohn (1993) and Pfeffer (1998) solidify this stand point | | | | by adding that the financial aspect is not the only thing |
| by adding that the financial aspect is not the only thing | | | | that matters. This is because the absence of it could |
| that matters. This is because the absence of it could | | | | be taken as a form of punishment by the organisation. |
| be taken as a form of punishment by the organisation. | | | | This is the reason why John Lewis uses its aspect of |
| This is the reason why John Lewis uses its aspect of | | | | partnership to motivate employees rather than just |
| partnership to motivate employees rather than just | | | | focusing on financial issues. These same authors |
| focusing on financial issues. These same authors | | | | assert that if a company only focuses on this type of |
| assert that if a company only focuses on this type of | | | | approach, it may prevent employees from tapping their |
| approach, it may prevent employees from tapping their | | | | full potential. John Lewis realised this and this is why |
| full potential. John Lewis realised this and this is why | | | | the partnership adds other factors into the equation. |
| the partnership adds other factors into the equation. | | | | For example, employees within the organisation have |
| For example, employees within the organisation have | | | | the power to hire or fire leaders within their council |
| the power to hire or fire leaders within their council | | | | upon giving justification of their reasons for doing so. |
| upon giving justification of their reasons for doing so. | | | | Employees in the Company also have the freedom to |
| Employees in the Company also have the freedom to | | | | air out their grievances and misgivings about some of |
| air out their grievances and misgivings about some of | | | | their administrators. Such approaches move away |
| their administrators. Such approaches move away | | | | form the financial aspect of motivation and |
| form the financial aspect of motivation and | | | | consequently add value to the firm. |
| consequently add value to the firm. | | | | Kohn (1993) adds that it is possible to motivate |
| Kohn (1993) adds that it is possible to motivate | | | | employees without the need to increase their pay. He |
| employees without the need to increase their pay. He | | | | claims there are three C's that employees can add to |
| claims there are three C's that employees can add to | | | | their organisation in order to add value. These include |
| their organisation in order to add value. These include | | | | Choice; where an employee should be given the |
| Choice; where an employee should be given the | | | | opportunity to participate in decisions affecting the |
| opportunity to participate in decisions affecting the | | | | company. This is an aspect that John Lewis has |
| company. This is an aspect that John Lewis has | | | | perfected through voting power granted to its |
| perfected through voting power granted to its | | | | employees. Also, that they have an internal magazine |
| employees. Also, that they have an internal magazine | | | | where suggestions on governance are given and the |
| where suggestions on governance are given and the | | | | administration reciprocates. The second C is the |
| administration reciprocates. The second C is the | | | | issue of Collaboration. Here there should be a |
| issue of Collaboration. Here there should be a | | | | two-way exchange of information between the |
| two-way exchange of information between the | | | | company and the employees. The third C put forward |
| company and the employees. The third C put forward | | | | by the same author is Content where organisations |
| by the same author is Content where organisations | | | | should go out of out their way to enrich employees' |
| should go out of out their way to enrich employees' | | | | jobs. This is an aspect that John Lewis has also |
| jobs. This is an aspect that John Lewis has also | | | | incorporated into their management style since |
| incorporated into their management style since | | | | employees work in teams, line managers have |
| employees work in teams, line managers have | | | | considerable amounts of responsibility and yet there |
| considerable amounts of responsibility and yet there | | | | are always new technical issues faced John Lewis. All |
| are always new technical issues faced John Lewis. All | | | | these qualities deal with the content aspect of |
| these qualities deal with the content aspect of | | | | motivation thus adding value top the company. |
| motivation thus adding value top the company. | | | | Pfeffer (1998) asserts that employees can add value |
| Pfeffer (1998) asserts that employees can add value | | | | to an organisation when there is equity within the |
| to an organisation when there is equity within the | | | | organisation. Any given company should realise that an |
| organisation. Any given company should realise that an | | | | employee will only be motivated when they receive |
| employee will only be motivated when they receive | | | | appreciation for their efforts. This appreciation should |
| appreciation for their efforts. This appreciation should | | | | be equal among all members of the organisation. Most |
| be equal among all members of the organisation. Most | | | | organisations have made the mistake of sharing profits |
| organisations have made the mistake of sharing profits | | | | among managers and top administrators yet this is |
| among managers and top administrators yet this is | | | | quite a big misconception. All members of the |
| quite a big misconception. All members of the | | | | organisation should receive equal treatment in this area |
| organisation should receive equal treatment in this area | | | | because it will be a justifiable issue. Al members within |
| because it will be a justifiable issue. Al members within | | | | the organisation will feel just as importance as the he |
| the organisation will feel just as importance as the he | | | | other and it will strengthen the bond within the |
| other and it will strengthen the bond within the | | | | organisation. John Lewis has recognised this truth. It |
| organisation. John Lewis has recognised this truth. It | | | | has given a lot of emphasis on equality. In the year |
| has given a lot of emphasis on equality. In the year | | | | 2007, the Company distributed fifty five million pounds |
| 2007, the Company distributed fifty five million pounds | | | | fairly and equally among all members of staff. |
| fairly and equally among all members of staff. | | | | Relationship between Human Resource and |
| Relationship between Human Resource and | | | | development activities and the strategic imperatives |
| development activities and the strategic imperatives | | | | facing the company |
| facing the company | | | | One of the most crucial aspects of human resource |
| One of the most crucial aspects of human resource | | | | and development activities within the organization |
| and development activities within the organization | | | | under study is reward systems. Reward systems |
| under study is reward systems. Reward systems | | | | have a direct and fundamental link between strategic |
| have a direct and fundamental link between strategic | | | | imperatives facing the Company and overall |
| imperatives facing the Company and overall | | | | effectiveness achieved by the company. This is |
| effectiveness achieved by the company. This is | | | | because pay systems can be modified so as to align |
| because pay systems can be modified so as to align | | | | themselves with overall goals and objectives of the |
| themselves with overall goals and objectives of the | | | | organisation consequently becoming part of the |
| organisation consequently becoming part of the | | | | businesses strategy within the organisation. It is |
| businesses strategy within the organisation. It is | | | | important for companies to have business strategies |
| important for companies to have business strategies | | | | first. This is because business strategies provide a |
| first. This is because business strategies provide a | | | | guideline that will help a given organisation have a |
| guideline that will help a given organisation have a | | | | sense of direction. Business strategy defines the way |
| sense of direction. Business strategy defines the way | | | | the firm will operate and what level of performance |
| the firm will operate and what level of performance | | | | should be expected. Therefore, business strategy is |
| should be expected. Therefore, business strategy is | | | | the foundation for rewards systems within the best |
| the foundation for rewards systems within the best | | | | practice model. |
| practice model. | | | | The best practice model is such that reward systems |
| The best practice model is such that reward systems | | | | should encourage involvement by employees. This |
| should encourage involvement by employees. This | | | | implies that the best practice model is against |
| implies that the best practice model is against | | | | job-based approaches where employees are paid |
| job-based approaches where employees are paid | | | | according to their merits. Instead, it advocates for pay |
| according to their merits. Instead, it advocates for pay | | | | systems that are based on skill and rewards and |
| systems that are based on skill and rewards and | | | | bonuses are given to employees when the company |
| bonuses are given to employees when the company | | | | has achieved success. Therefore the best practice |
| has achieved success. Therefore the best practice | | | | model moves away from the traditional methods of |
| model moves away from the traditional methods of | | | | measuring employee performance through |
| measuring employee performance through | | | | performance appraisals. More focus is placed on |
| performance appraisals. More focus is placed on | | | | creating a sense of concern within the employees |
| creating a sense of concern within the employees | | | | about the performance of the organisation. Also pay |
| about the performance of the organisation. Also pay | | | | systems are dependent on the nature of business |
| systems are dependent on the nature of business | | | | success mad not on the merits employees have. |
| success mad not on the merits employees have. | | | | Pfeffer (1998) points out some disadvantages of the |
| Pfeffer (1998) points out some disadvantages of the | | | | traditional reward systems where merits were the |
| traditional reward systems where merits were the | | | | most important aspect at that time. These are; |
| most important aspect at that time. These are; | | | | - The merit system creates fear culture within the |
| - The merit system creates fear culture within the | | | | organisation |
| organisation | | | | - employees mainly focus on short rather than long |
| - employees mainly focus on short rather than long | | | | term goals |
| term goals | | | | - employees do not care about how the organisation |
| - employees do not care about how the organisation | | | | performs |
| performs | | | | - it devalues team work because emphasis is on |
| - it devalues team work because emphasis is on | | | | individual performance |
| individual performance | | | | - it is subject to biases and politics |
| - it is subject to biases and politics | | | | In light of these disadvantages, it became necessary |
| In light of these disadvantages, it became necessary | | | | to adopt a reward system that addresses these |
| to adopt a reward system that addresses these | | | | pitfalls. One should take note that best practice policies |
| pitfalls. One should take note that best practice policies | | | | remain stagnant even when the organisation's strategic |
| remain stagnant even when the organisation's strategic | | | | direction changes. |
| direction changes. | | | | Some of the theoretical frameworks contained in this |
| Some of the theoretical frameworks contained in this | | | | model were spearheaded by Huselid (1995) and |
| model were spearheaded by Huselid (1995) and | | | | Pfeffer (1996). The best practice model is such that a |
| Pfeffer (1996). The best practice model is such that a | | | | company that adopts this form of practice attract the |
| company that adopts this form of practice attract the | | | | best human resource personnel there is out there. This |
| best human resource personnel there is out there. This | | | | implies that the strategy the company adopted will be |
| implies that the strategy the company adopted will be | | | | influenced greatly by these valuable staff members |
| influenced greatly by these valuable staff members | | | | and thus leading to organisational success. One can |
| and thus leading to organisational success. One can | | | | therefore conclude that policies within this type of |
| therefore conclude that policies within this type of | | | | strategy precede business strategy. |
| strategy precede business strategy. | | | | The main relationship between best practice and an |
| The main relationship between best practice and an | | | | organisation's strategic imperatives is that it provides a |
| organisation's strategic imperatives is that it provides a | | | | basis for achieving an organisation's pay objectives. |
| basis for achieving an organisation's pay objectives. | | | | Lawler (1996) states that an organisation first needs to |
| Lawler (1996) states that an organisation first needs to | | | | identify its reward system objectives. This is because |
| identify its reward system objectives. This is because | | | | the objectives act as a basis for measuring the |
| the objectives act as a basis for measuring the | | | | effectiveness of the pay systems and they also act |
| effectiveness of the pay systems and they also act | | | | as guidelines. Some of the objectives are; |
| as guidelines. Some of the objectives are; | | | | ‘Objectives of reward systems |
| ‘Objectives of reward systems | | | | Attract and retain employees; |
| Attract and retain employees; | | | | Motivate performance; |
| Motivate performance; | | | | Promote skill and knowledge development; |
| Promote skill and knowledge development; | | | | Contribute to corporate culture; |
| Contribute to corporate culture; | | | | Reinforce and define structure; and |
| Reinforce and define structure; and | | | | Determine pay costs' (Lawler, 1996) |
| Determine pay costs' (Lawler, 1996) | | | | These objectives have contributed greatly towards |
| These objectives have contributed greatly towards | | | | achievement of John Lewis Strategic intent. These |
| achievement of John Lewis Strategic intent. These | | | | shall be examined in detail. The first link between the |
| shall be examined in detail. The first link between the | | | | latter mentioned acts is attraction and retention of |
| latter mentioned acts is attraction and retention of | | | | employees. For the organisation under study; John |
| employees. For the organisation under study; John | | | | Lewis, there is a need to attract best quality individuals |
| Lewis, there is a need to attract best quality individuals | | | | because the retail sector is highly competitive. This is |
| because the retail sector is highly competitive. This is | | | | highly relevant since there are instances when labour |
| highly relevant since there are instances when labour | | | | markets become stringent. Pfeffer (1998) suggests |
| markets become stringent. Pfeffer (1998) suggests | | | | that there is a link between what amount a firm pays |
| that there is a link between what amount a firm pays | | | | to its workforce and the quality of employees it is able |
| to its workforce and the quality of employees it is able | | | | to attract. This theory is seen clearly in the John Lewis |
| to attract. This theory is seen clearly in the John Lewis | | | | partnership where the company paid millions in |
| partnership where the company paid millions in | | | | bonuses to its workforce. This caused an increase in |
| bonuses to its workforce. This caused an increase in | | | | the company's performance as seen from its |
| the company's performance as seen from its | | | | favourable market shares. |
| favourable market shares. | | | | Huselid (1995) adds that attracting the right employees |
| Huselid (1995) adds that attracting the right employees | | | | is not just something that is achieved by a pay system. |
| is not just something that is achieved by a pay system. | | | | It is also something that needs to be combined with a |
| It is also something that needs to be combined with a | | | | meticulous selection process. The organisation needs |
| meticulous selection process. The organisation needs | | | | to ensure that thee are well qualified candidates in |
| to ensure that thee are well qualified candidates in | | | | large numbers. the importance of the selection process |
| large numbers. the importance of the selection process | | | | is that a candidate may feel honoured to belong to an |
| is that a candidate may feel honoured to belong to an | | | | organisation that takes its selection process seriously. |
| organisation that takes its selection process seriously. | | | | This can be carried further to imply that the |
| This can be carried further to imply that the | | | | organisation also values people and this means that |
| organisation also values people and this means that | | | | those employees will feel privileged to belong to the |
| those employees will feel privileged to belong to the | | | | organisation. This is exactly what has occurred at John |
| organisation. This is exactly what has occurred at John | | | | Lewis Company. |
| Lewis Company. | | | | Delery and Doty (1996) assert that whenever there is |
| Delery and Doty (1996) assert that whenever there is | | | | a low employee turnover, employees will feel more |
| a low employee turnover, employees will feel more | | | | obliged to perform because they are assured of their |
| obliged to perform because they are assured of their | | | | job security. They highlight the importance of knowing |
| job security. They highlight the importance of knowing | | | | that one will not loose their job. This is because it will. |
| that one will not loose their job. This is because it will. | | | | prevent them from worrying about this and instead |
| prevent them from worrying about this and instead | | | | focus on tasks at hand. Pfeffer (1994) goes on to add |
| focus on tasks at hand. Pfeffer (1994) goes on to add | | | | that low employee turnover is quite necessary when |
| that low employee turnover is quite necessary when | | | | trying to create a family friendly culture within an |
| trying to create a family friendly culture within an | | | | organisation. This means that workers will feel at home |
| organisation. This means that workers will feel at home | | | | in their work environment. They will also be challenged |
| in their work environment. They will also be challenged | | | | intellectually and consequently enjoy their work |
| intellectually and consequently enjoy their work | | | | experience. This is also toped up by a good reward |
| experience. This is also toped up by a good reward | | | | system. John Lewis is characterised by such practices |
| system. John Lewis is characterised by such practices | | | | since it has a rigorous selection process, high |
| since it has a rigorous selection process, high | | | | employee retention and a strong organisational culture. |
| employee retention and a strong organisational culture. | | | | Contribution Human resource and development can |
| Contribution Human resource and development can | | | | make towards achieving the organisation's strategic |
| make towards achieving the organisation's strategic | | | | intent |
| intent | | | | Best practice as a human resource development |
| Best practice as a human resource development | | | | strategy can help an organisation achieve its strategic |
| strategy can help an organisation achieve its strategic | | | | intent through creation of a unique corporate culture. |
| intent through creation of a unique corporate culture. | | | | Drennan (1992) describes corporate culture as the |
| Drennan (1992) describes corporate culture as the | | | | way things are done within any organisation. It can |
| way things are done within any organisation. It can | | | | either impede or promote organisational effectiveness |
| either impede or promote organisational effectiveness | | | | depending on its implementation. |
| depending on its implementation. | | | | John Lewis partnership should ensure that it promotes |
| John Lewis partnership should ensure that it promotes | | | | organisational effectiveness through the following |
| organisational effectiveness through the following | | | | ways. It should try as much as possible to reinforce its |
| ways. It should try as much as possible to reinforce its | | | | value in areas such as innovation, quality, performance |
| value in areas such as innovation, quality, performance | | | | and teamwork as suggested by Armstrong (1999). |
| and teamwork as suggested by Armstrong (1999). | | | | Lawler (1996) adds that an organisation can create a |
| Lawler (1996) adds that an organisation can create a | | | | culture through best practise approaches by |
| culture through best practise approaches by | | | | encouraging the following; |
| encouraging the following; | | | | -participation |
| -participation | | | | -innovation |
| -innovation | | | | -entrepreneurship |
| -entrepreneurship | | | | -eliminating too much bureaucracy |
| -eliminating too much bureaucracy | | | | -encouraging competency |
| -encouraging competency | | | | |
| Lawler (1996) goes on to add that organisations should | | | | Lawler (1996) goes on to add that organisations should |
| deal with two aspects in order to change their | | | | deal with two aspects in order to change their |
| corporate culture and to achieve their strategic intent. | | | | corporate culture and to achieve their strategic intent. |
| This can be done through communication and the | | | | This can be done through communication and the |
| decision making process. John Lewis should make sure | | | | decision making process. John Lewis should make sure |
| that it continues to maintain open and transparent | | | | that it continues to maintain open and transparent |
| channels of communication about its reward systems. | | | | channels of communication about its reward systems. |
| This will eliminate any uncertainties among members of | | | | This will eliminate any uncertainties among members of |
| staff and will contribute towards their commitment. The | | | | staff and will contribute towards their commitment. The |
| Company should also go out of its way to maintain a | | | | Company should also go out of its way to maintain a |
| participative approach in decision making. Lawler (1995) | | | | participative approach in decision making. Lawler (1995) |
| notes that companies that have failed in the past are | | | | notes that companies that have failed in the past are |
| those ones that adopted autocratic methods of | | | | those ones that adopted autocratic methods of |
| governance; these are characterised by secrecy and | | | | governance; these are characterised by secrecy and |
| top down communications. The Company should stick | | | | top down communications. The Company should stick |
| to these best practice principles in order to achieve | | | | to these best practice principles in order to achieve |
| their strategic intent. | | | | their strategic intent. |
| Conclusion | | | | |
| Best practise is a human resource strategy that | | | | Conclusion |
| affects overall organisational strategy. According to | | | | Best practise is a human resource strategy that |
| the best practice approach, reward systems | | | | affects overall organisational strategy. According to |
| contribute to organisational culture. However, pay | | | | the best practice approach, reward systems |
| should not be the only thing that takes precedence. | | | | contribute to organisational culture. However, pay |
| There should be adequate consideration of decision | | | | should not be the only thing that takes precedence. |
| making powers, communication channels and job | | | | There should be adequate consideration of decision |
| enrichment. If these latter three factors are | | | | making powers, communication channels and job |
| implemented by companies, then they will achieve | | | | enrichment. If these latter three factors are |
| competitive advantage. The John Lewis has been on | | | | implemented by companies, then they will achieve |
| the frontline of best practise strategies because it is a | | | | competitive advantage. The John Lewis has been on |
| worker and most of their decisions are participative. | | | | the frontline of best practise strategies because it is a |
| Reward systems within this company encourage | | | | worker and most of their decisions are participative. |
| equity and this is why it has been recorded increased | | | | Reward systems within this company encourage |
| profits in the recent years. | | | | equity and this is why it has been recorded increased |
| Reference: | | | | profits in the recent years. |
| John Lewis (2007): Interim Financial report. Retrieved | | | | Reference: |
| 24 March, 2008 | | | | John Lewis (2007): Interim Financial report. Retrieved |
| Pfeffer, J. and Velga, J. (1999): Putting people first for | | | | 24 March, 2008 |
| organizational success; | | | | Pfeffer, J. and Velga, J. (1999): Putting people first for |
| Academy of Management Executive, 13 (2), p. 37-48 | | | | organizational success; |
| Youndt, M. A. et al (1996): Human Resource | | | | Academy of Management Executive, 13 (2), p. 37-48 |
| Management, Manufacturing Strategy, and Firm | | | | Youndt, M. A. et al (1996): Human Resource |
| Performance; Academy of Management Journal, 39, | | | | Management, Manufacturing Strategy, and Firm |
| p836-66 | | | | Performance; Academy of Management Journal, 39, |
| Pfeffer, J. (1998): Six Dangerous Myths About Pay; | | | | p836-66 |
| Harvard Business Review, May- | | | | Pfeffer, J. (1998): Six Dangerous Myths About Pay; |
| June, p. 109-119 | | | | Harvard Business Review, May- |
| Pfeffer, J. (1994): Competitive Advantage Through | | | | June, p. 109-119 |
| People: Unleashing the Power ofthe Workforce, | | | | Pfeffer, J. (1994): Competitive Advantage Through |
| Boston, MA: Stanford Graduate School of Business; | | | | People: Unleashing the Power ofthe Workforce, |
| Harvard Business | | | | Boston, MA: Stanford Graduate School of Business; |
| School Press | | | | Harvard Business |
| Burnes, B. (2000): Managing Change: A Strategic | | | | School Press |
| Approach to Organisational | | | | Burnes, B. (2000): Managing Change: A Strategic |
| Dynamcis, Harlow: Financial Times; Prentice Hall | | | | Approach to Organisational |
| Adams, J. (1965): Inequity in Social Exchange. In | | | | Dynamcis, Harlow: Financial Times; Prentice Hall |
| Advances in Experimental Social | | | | Adams, J. (1965): Inequity in Social Exchange. In |
| Psychology, vol. 2, ed. L. Berkowitz, p. 267-299; New | | | | Advances in Experimental Social |
| York: Academic Press. | | | | Psychology, vol. 2, ed. L. Berkowitz, p. 267-299; New |
| Herzberg, F. (2001): One More Time: How Do You | | | | York: Academic Press. |
| Motivate Employees? Harvard | | | | Herzberg, F. (2001): One More Time: How Do You |
| Business Review, 81(3), p. 87-96 | | | | Motivate Employees? Harvard |
| Huselid, M. (1995): The Impact of Human Resource | | | | Business Review, 81(3), p. 87-96 |
| Management Practices on | | | | Huselid, M. (1995): The Impact of Human Resource |
| Turnover, Productivity and Corporate Financial | | | | Management Practices on |
| Performance; Academy of | | | | Turnover, Productivity and Corporate Financial |
| Management Journal, 38 (3), p. 635-72 | | | | Performance; Academy of |
| Kohn, A. (1993): Rethinking Rewards; Harvard Business | | | | Management Journal, 38 (3), p. 635-72 |
| Review, 71(6), p. 48-49. | | | | Kohn, A. (1993): Rethinking Rewards; Harvard Business |
| Lawler, E. (1996): The Design of Effective Reward | | | | Review, 71(6), p. 48-49. |
| Systems. In Motivation and | | | | Lawler, E. (1996): The Design of Effective Reward |
| Leadership at Work, sixth edition, eds. R. Steers, L. | | | | Systems. In Motivation and |
| Porter and G.Bigley, p. 527-550. | | | | Leadership at Work, sixth edition, eds. R. Steers, L. |
| New York; McGraw Hill International Press | | | | Porter and G.Bigley, p. 527-550. |
| Delery, J. and Doty, D. (1996): Models of Theorizing in | | | | New York; McGraw Hill International Press |
| Strategic Human Resource | | | | Delery, J. and Doty, D. (1996): Models of Theorizing in |
| Management: Tests of Universalistic, Contingency and | | | | Strategic Human Resource |
| Configurational Performance | | | | Management: Tests of Universalistic, Contingency and |
| Predictions; Academy of Management Journal, 39(4), | | | | Configurational Performance |
| p802-35 | | | | Predictions; Academy of Management Journal, 39(4), |
| Armstrong, M. (1999): Employee Reward. 2ndedition. | | | | p802-35 |
| London: CIPD | | | | Armstrong, M. (1999): Employee Reward. 2ndedition. |
| Lawler, E. (1995): The New Pay: A Strategic Approach; | | | | London: CIPD |
| Compensation and Benefits | | | | Lawler, E. (1995): The New Pay: A Strategic Approach; |
| Review, 27 (4), p.14-22 | | | | Compensation and Benefits |
| Introduction | | | | Review, 27 (4), p. |