Notwithstanding this, there is an implicit assumption that the bundles of HR practices used will be those that add the most value for shareholders, reflecting a highly managerialist outlook. The contingent nature of many HR strategies affects
HR objectives, and these appear to vary according to the different contextual pressures the organisation is facing. For example, an organisation that is experiencing internal pressures such as restructuring is more likely to promote cost-control HR objectives compared to organisations that face external pressures such as labour market competition, which would focus on employee-centred HR objectives. Applying contingent HR strategies such as these is
likely to be appealing to line managers as they can see the relevance to what the organisation is aiming to do in the short term. It can also enhance the credibility of the HR team, who are seen to be business focused. For those who adopt a contingent perspective, good
HR strategy is flexible so as to align with the ever- changing strategies of a business in an increasingly dynamic economic environment. What is considered to be good HRM practice
therefore differs according to the perspective adopted. Those who adopt the best practice view (a universalistic approach) would argue that a specific bundle of HR practices will lead to the best outcomes. By contrast, some would argue that the appropriate strategic HR role is one that asks HR managers to ensure that they deliver the best fit (contingency approach) in tailoring HR strategies to organisational goals. Although neither of these approaches ignores the need
for good practice in HRM, both appreciate that good practice is not often common practice – and a common theme in them is the relative lack of focus on employee wellbeing compared with delivering for business needs, especially in a highly competitive business environment.
THE INTERNATIONAL EXPERIENCE/ MOBILITY DIMENSION One of the key issues in ensuring both a high-quality and an innovative goods and services strategy concerns training and development. Yet even when pursuing low- cost goals, investment in capability development can result in less wastage in production through fewer errors. It is thus important to ensure that employees have the necessary capabilities in place. Capability development can act as a motivational
strategy to attract and retain employees. Through retention, turnover is lowered and recruitment costs reduced. Thus, capability development can contribute to cost-reduction strategies. For high-quality and innovative products and services, the development of capabilities and career progression is highly relevant. This is where international experience can pay dividends. Learning from working in different cultures and amongst global workgroups can bring in new ideas that contribute to innovation and also enhance quality. International experience can be gained through
expatriation – by living and working in another country – and also through remote working whereby international duties are performed in the home country. International assignments are typically thought to be expensive – it is usually said that a foreign assignment costs three times the home country salary equivalent. That said, the return on investment is high otherwise employers would not entertain the notion of sending people abroad to work for
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lengthy periods of time. Not all jobs and employees though are suited for
global mobility. Employees can also gain international experience and significantly increase their capabilities and competencies through carrying out international work duties remotely while based in the home country. It is well known that gaining international experience
acts as a motivator for employees by enhancing their career progress. Involvement in international teams can take place through working in the home country and thereby create a climate for career enhancement and employee motivation leading to higher innovation and quality products and services. By facilitating international experience by working in the home country, employees can gain international competencies of value to the business and to themselves personally and professionally, thus also supporting a cost-control strategy (as there is no need for potentially expensive relocation). In summary, organisations today cannot focus on
one strategic goal alone – to be successful they need to produce products and services that are cost efficient, of high quality and are innovative. And they need the right HR approach in place to ensure that all three objectives can be achieved simultaneously. The desired outcome is also threefold – productive and satisfied employees, profitability to ensure future investment by shareholders, and satisfied and loyal customers who produce reviews that attract more business, thereby creating a cycle of success.
“ Organisations today cannot focus on one strategic goal alone – to be successful they need to produce products and services that are cost efficient, of high quality and are innovative.”
GLOBAL LEADERSHIP
HR STRATE G Y
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