Question
KumKum Manufacturing Co. is a large MNC into the manufacture and sales of high-quality electric cars with unique after purchase service in place for customers in the UK. However, the company only pay the minimum wage to all employees and slightly more to employees occupying strategic positions in the company. Based on the above, the differentiation strategy in the company aligns well with the low-road HR strategy in operation in the company. A. True B. False B A
Answer
4.7
(215 Votes)
Jasper
Elite · Tutor for 8 years
Answer
B
Explanation
The differentiation strategy involves a company providing unique and innovative products or services that create value for their customer. When these offerings are coupled with excellent customer service or other unique business strategies, they can lead to a competitive advantage. On the other hand, a low-road HR strategy primarily involves minimizing labor costs, often through paying the lowest possible wages. These two strategies, therefore, generally do not align. Businesses pursuing a differentiation strategy typically need highly skilled and engaged employees, which would be difficult to find and retain when paying low wages, particularly for employees occupying strategic positions in the company where their jobs have significant impacts on the quality of products or services. Therefore the differentiation strategy of KumKum Manufacturing doesn't align well with their low-road HR approach.