Argue that there is a set of human resource practices that, when combined together, produce a positive effect on organizational performance/productivity. For instance, it might be argued that when teamworking, performance-related pay, empowerment, and competency-based systems of appraisal and training are configured, there is an overall improvement in measures of organizational effectiveness such as increased productivity, lower employee turnover, and better financial performance (see high performance work practices). Importantly, some very ambitious claims have been made for these ‘bundles’ with some researchers asserting that a particular bundle will improve any organization, irrespective of its particular circumstances. This approach means that bundles theorists reject the importance of external fit. Instead, they emphasize the value of ensuring an appropriate internal fit. However, the various bundles researchers do not agree on what constitutes the best bundle of practices that organizations should adopt. But the most scathing criticism of the bundles approach is that it tends to lead to the conclusion that there is one best way of managing people (the right bundle) when in practice there may be a variety of approaches that could produce positive effects.
Subjects: Human Resource Management.