The impact of human capital management on operational performance at the gambia national water and


particular model, in this case, the US model as the one to be followed. With this



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particular model, in this case, the US model as the one to be followed. With this 
approach, the principal job is to detect the bundle that seems to work and then get all 
organizations to apply this without deviation. Second, there are two sets of criterion free 
categories, ‘fit as gestalt’ and ‘fit as bundles’. In the case of the former, it is assumed 
that the synergies are achievable only with the adoption of all these practices, and that if 
one is missing the whole effect will be lost. These approaches are termed 
‘multiplicative’, and it is assumed that the whole is greater than the sum of its parts. In 


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this scenario, an organization that adopted a majority of the practices would be no better 
off than the one that adopted none of them because the chain tying together the different 
elements of HRM would be broken.
By contrast, bundles are ‘additive’. Generally speaking, the more practices that are in 
place the better, so long as some distinctive core exists. In other words, it may be 
possible to adopt a large number of high commitment HR practices and ignore others, 
but still gain from the interactive effects of those that are in place. Questions then arise 
as to how many practices are needed to make a difference, from what areas of HRM 
these are to be drawn and whether certain practices are fundamental to make the 
synergies work.
 
2.2.3 Universal or ‘best practice’ approaches to HR bundles
One major perspective on human resources and performance linkages is the idea of 
‘best practices’, or ‘high performance work practices.’ This view emphasises the need 
for strong consistency among HR practices (internal fit) in order to achieve effective 
performance. It receives a high degree of empirical support (Huselid, 1995; Delaney 
and Huselid, 1996; Arthur, 1994; Ichniowski et al., 1997; MacDuffie, 1995). Pioneered 
by the prominent researcher Pfeffer (1994), cited in Stiles (2011) there are 15 HR 
practices that have primarily been subsumed. Later in Pfeffer’s work (1998), a set of 7 
HR practices is revealed: employment security/ turnover intention, selective hiring, self-
managed teams, high compensation contingent on performance, training, reduction of 
status differentials, and sharing information.
Arthur (1992, 1994) reports that the HR practices focusing on enhancing employee 
commitment (e.g. decentralised decision-making, comprehensive training, salaried 


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compensation, employee participation) are related to higher performance. Conversely, 
he finds that the HR practices focusing on control, efficiency and the reduction of 
employee skills and discretion are associated with increased turnover and poorer 
manufacturing performance. Similarly, in a study of the high performance work 
practices, Huselid (1995) points to the fact that investments in HR activities, such as 
incentive compensation, selective staffing techniques and employee participation, result 
in lower turnover, greater productivity and increased organizational performance 
through their impact on employee skill development and motivation.
In sum, the more the high performance HRM practices are used, the better the 
performance as indicated by productivity, turnover and financial soundness is yielded. 
Although different types of the fit approaches are compared, the bottom line of the 
results seems to be invariable with the strongest research support.

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