Factors to consider for strategic selection decisions include:
a) labor orientation and strategic direction
b) hiring loyal soldiers for low turnover and committed experts for low cost
c) hiring long-term specialists versus short-term loyal soldiers
d) hiring the committed expert and bargain laborers
The correct answer and explanation is :
The correct answer is:
a) labor orientation and strategic direction
Explanation:
Strategic selection decisions in human resource management involve aligning hiring practices with the company’s overall strategic goals. This means that organizations must consider both their labor orientation (how they view their workforce) and their strategic direction (the business strategy they pursue) when making hiring decisions.
- Labor Orientation:
Companies adopt different labor strategies based on their needs. Some focus on hiring loyal, long-term employees, while others emphasize short-term, flexible workers. The two primary labor orientations are:
- Internal Orientation: Focuses on developing existing employees, offering job security, and promoting from within.
- External Orientation: Prioritizes hiring from outside, with a flexible workforce that can quickly adapt to changing business needs.
- Strategic Direction:
A company’s business strategy dictates the type of workforce it needs. Two key strategic approaches are:
- Cost Leadership Strategy: Companies minimize costs and emphasize efficiency (e.g., Walmart, McDonald’s). They often prefer external, low-cost labor with minimal investment in training.
- Differentiation Strategy: Companies focus on innovation, quality, or customer service (e.g., Apple, Tesla). They require highly skilled and specialized employees, favoring internal talent development and long-term expertise.
By aligning labor orientation with strategic direction, companies can make effective hiring decisions. For example, a company pursuing innovation (differentiation strategy) should invest in hiring and retaining committed experts, while a cost-driven company might prefer bargain laborers for flexibility and efficiency.
Thus, option (a) labor orientation and strategic direction is the best choice, as it encapsulates the key factors organizations must consider for strategic selection decisions.