An organization with an internal labor orientation seeking cost reduction can benefit from:
Question 13 ?options:
the Free Agent HR strategy
the Loyal Soldier HR strategy
the Committed Expert HR strategy
the Bargain Laborer
The correct answer and explanation is :
Correct Answer: The Loyal Soldier HR Strategy
Explanation:
Organizations with an internal labor orientation focus on developing and retaining employees over the long term, rather than frequently hiring from external labor markets. They invest in their employees’ training and career growth, fostering loyalty and commitment.
Additionally, cost reduction implies that the organization aims to minimize expenses, particularly labor costs, through efficient workforce management, rather than competing on differentiation or innovation.
The Loyal Soldier HR strategy is the best fit for such an organization because:
- Emphasis on Internal Development:
- The organization prioritizes hiring employees at entry-level positions and promoting from within.
- Employees receive training and skill development opportunities to increase their value over time, reducing the need for external hiring.
- Long-Term Employment and Loyalty:
- Job security is emphasized, which encourages employees to remain committed to the organization.
- A stable workforce reduces recruitment and turnover costs.
- Cost-Effective Workforce Management:
- Pay levels are typically moderate but come with long-term employment benefits, reducing short-term compensation pressures.
- Employees are cross-trained and flexible, increasing efficiency and minimizing the need for additional hires.
- Efficiency and Standardization:
- Work is typically structured with clear rules and standard operating procedures.
- Employees are expected to contribute to cost savings by improving efficiency and reducing waste.
Why Not the Other Options?
- Free Agent HR Strategy: Focuses on external hiring and differentiation rather than cost reduction.
- Committed Expert HR Strategy: Focuses on internal development but emphasizes innovation rather than cost efficiency.
- Bargain Laborer HR Strategy: Focuses on cost reduction but relies on external hiring rather than internal labor markets.
Thus, the Loyal Soldier HR strategy is the most appropriate for an organization aiming for cost reduction with an internal labor focus.