For organizations pursuing a differentiation strategy:Select one: A. ?employee retention is not an issue because the organization hires the lowest cost labor B. ?employee separations can be an important part of the strategy C. ?there’s little emphasis on removing low performers
The Correct Answer and Explanation is :
The correct answer is B. Employee separations can be an important part of the strategy.
Explanation:
A differentiation strategy focuses on offering unique products or services that stand out from competitors, typically by emphasizing quality, innovation, customer service, or other factors that create distinct value for consumers. This strategy often targets a specific market segment that values these unique qualities and is willing to pay a premium for them.
For organizations pursuing a differentiation strategy, employee separations (the process by which employees leave the company, either voluntarily or involuntarily) can indeed be a part of the broader strategy. This is because the organization may seek to retain only the most skilled, innovative, and high-performing employees who contribute directly to the unique aspects of the product or service. Employee separations can become a necessary step in refining the workforce to align with the company’s focus on differentiation.
In such organizations, there is often an emphasis on hiring and retaining employees who excel in areas that directly support the differentiation objectives—such as creativity, leadership, or deep industry expertise. This means that while turnover might be higher, especially among low performers, it’s often intentional. The organization may decide to part ways with employees who do not align with its strategy or are not performing at the level required to maintain its differentiated position in the market.
Additionally, removing low performers is often essential in a differentiation strategy to maintain high standards, and this typically involves managing employee separations proactively, whether through firings or voluntary separations like retirements or resignations. On the other hand, focusing on retaining employees with exceptional skills, especially those contributing to innovation and value creation, will help the organization uphold its competitive advantage in the marketplace.
In contrast, the other options (A and C) are not consistent with a differentiation strategy. A differentiation strategy does not focus on the lowest-cost labor or ignore performance issues. Instead, it aims to create value through unique offerings and requires a highly skilled and motivated workforce.