The style of the HR Management is a strong differentiator for the organization. The modern organization with the unique HR Management style is attractive to creative and ambiguous employees. The rigid management style attracts people, who like the stable environment with no huge and frequent changes. The style of HR leadership and management has to be defined in the HR strategy and has to be approved by the top management of the organization. The different style can be expensive and the organization has to make a strategic decision about the investments into HR Management.
The differentiation of the HR style has to be aligned with the differentiation of the whole business strategy. The living conflict leads to confusion of employees and job applicants. The mature organization should not implement the competitive and different HR Management style or it will start to lose its loyal employees. They expect a different approach of the employer.
The organization has to choose the right HR Strategy. It can make a choice between:
- Differentiation HR Strategy
- Cost Management Focus Strategy
- HR Strategy with the focus on Key Elements
The differentiation is the most attractive HR strategy for the creative and innovative employees. This organization makes processes and procedures differently. It introduces new approaches and it does not manage costs of HR processes in a detail. The organization does not communicate details about its internal practices. It communicates that it makes things differently.
The HR Management in the creative organization is difficult. It is about the management of the chaos. The HR team has to set a broad vision and the loose HR strategy as it can absorb quick changes. The employees do not expect processes to stay the same over a longer period of time. Many people cannot work in such the environment.
The cost management focused HR Strategy is different. The HR processes and procedures emphasize the stability of the organization. The critical HR processes are strictly managed by the hierarchy of managers. The system does not like exceptions.
The style of the HR Management in the mature organization focused on the cost management is close to the style of the industry standards. The organization accepts general HR policies as facts and it makes just few cosmetic changes. The competitive advantage is derived from the stability not from the differentiation. The management style is focused on designing policies and processes, which can smoothly operate in the stable environment.
The organization is ready to lose many high potentials and talents. However, it has the ability to hire new employees from the job market quickly. As all procedures and processes are clearly described, the induction of the new employee is quick and the loss of the performance is limited. The natural fluctuation is one resource of the cost management.
The organization with the focus on key elements manages its cost base, but it invests into key elements building the competitive advantage on the market. The style of the HR Management in such the organization is focused on the key HR process, which enables the organization to attract and retain the top talents from the job market.
The organization usually emphasizes the focus on the key HR process and it sells it as the advantage to employees. These organizations usually differentiate among employees and they have a forced distribution model.
The organization with the focus on the key elements offers the stability to employees preferring the calm work environment and it offers the potential to grow to high potentials and top performers.