Question
Organisations with cost -leadership as their competitive strategy are more likely to deploy low commitment HRM strategy . It is therefore beneficial for organisations with low-cost strategy to deploy soft HR. A. True B. False A B
Answer
4.5
(287 Votes)
Layla
Veteran · Tutor for 10 years
Answer
B
Explanation
In this question, we are asked to evaluate a statement about the competitive strategies of organizations. In this case, the conversation primarily revolves around cost-leadership strategy and how it contributes to the company's overall HR (Human Resource) management strategy. A company that chooses to adopt a cost-leadership investment strategy competitive advantage by striving to become the lowest-cost producer in its industry. In the field of Human Resource Management (HRM), there are generally two modes of management: hard HRM and soft HRM. The hard model focuses on strategic control, aligning HRM strategy with business strategy, while the soft model emphasizes the 'human' in human resources, focusing on areas like communication, motivation, and leadership.The statement is saying that organizations deploying a cost-leadership strategy are likely to use low commitment HRM, that isn't entirely accurate, as a company following a cost-leadership strategy may find it beneficial to adopt a hard approach where HR strategy aligns with business. On the other hand, a soft HR approach engages employees, creates job satisfaction, and enhances performance, which may lead to cost savings.Therefore, linking low-cost strategy with soft HR is wrong which makes the statement false.