HRM Strategy

HRM STRATEGY

HRM Strategy addresses the issue whether a company or business unit should try to:

• Hire a large no. of low skilled employees who receives low pay, perform repetitive jobs, and most likely quit after a short time (Eg: McDonald)
• Hire skilled employees who received relatively high pay and are cross trained to participate in self management work teams (Eg: MNC’s)
• Business firms are experimenting with different category of workers

(a) Part time workers

(b) Temporary workers

(c) Leasing of employees

Diverse workforce constitutes a competitive advantage. Companies with a high degree of racial diversity follow a growth strategy it tends to have higher productivity than others.