Legislating for Best Practice HRM: The New Zealand Approach

Abstract

In New Zealand, the government has mandated for employers in the public sector to be “good employers” (§ 56, State Sector Act 1988). According to the directive, a “good employer” is one who engages in best practice HRM. Thus, a unique opportunity exists to see if best practice HRM can be achieved through regulation. This paper explores this by examining how the good employer directive has influenced HRM policy development, practice and outcomes in the public sector. This study finds a directive to engage in best practice HRM positively impacts on formal policy adoption and the number of practices operating in public sector workplaces and some positive outcomes for EEO are also identified. Public sector employers attribute these outcomes to the directive. This would suggest regulation in the area of HRM could be effective in producing desirable employment practices.