“ Good HR strategy is flexible so as to align with the ever-changing strategies of a business in an increasingly dynamic economic environment.”
quality-enhancement strategy as the sole objective though is unlikely to lead to cost reduction. Added into the mix is the desire for innovation. An
innovation strategy means that highly-trained specialists work closely together to produce complex and adaptable products and services. Here an associated HR policy is likely to focus on jobs that allow employees to develop skills across a range of positions (flexibility), career paths that develop broad ranges of skills and commitment to organisational goals, the use of problem-solving teams, and emphasis on individualism in learning and development and employee relations. Emphasis may not be on higher pay rates, but on employee shareholding and choice within pay and benefits, with performance appraisals to reflect long-term achievement.
HIGH-COMMITMENT HRM What becomes immediately obvious is that the three strategies involve potentially contradictory and/ or competing HR approaches. To achieve all three outcomes, namely cost reduction, quality enhancement and innovation, employers will need to combine elements as appropriate potentially for all or for different elements of the workforce using HR practices that can generate a high-commitment HRM supporting framework.
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High-commitment HRM typically involves:
• employment security and internal promotion • selective hiring and sophisticated selection • extensive training, learning and development • employee involvement and voice • self-managed teams and team working • high compensation contingent on organisational performance
• reduction of status differentials/harmonisation • performance review, appraisal and career development • work-life balance.
BUNDLES OF HR PRACTICES By combining elements of these high-commitment practices into complementary bundles appropriate for all or relevant sections of the workforce, it is argued that these HR actions can increase company profits, while supporting organisational strategy pursuing the threefold cost/quality and innovation goal. The impact is likely to be more pronounced when complementary bundles of HR practices are used together. Hence, horizontal integration is needed such that each HR practice supports the others through powerful connections. This should lead to synergies through adoption of a mix of integrated approaches all aligned vertically to organisational strategy. Social changes and context affect the daily work lives
and expectations of employees and help shape their attitudes and motivation. Hence, these affect the success and effectiveness of certain bundles of HR practices within different environments. This means that different bundles of high-commitment practices will be needed depending on industry and context. As such, there is a lack of agreement about what the best bundles of practices are as these will not necessary apply to all organisations.
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