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Strategic Dilemmas: How Managers Use HR Practices to Meet Multiple Goals

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  • Jae Eun Lee
  • Rosemary Batt
  • Lisa M. Moynihan

Abstract

Contrary to the classic assumptions in the business and human resource (HR) strategy literatures, real‐world organizations often pursue multiple and potentially contradictory performance goals. They may adopt ‘hybrid’ strategies to maximize both differentiation and low cost — leading middle managers to face dilemmas in how to achieve different goals using the same HR practices. We link employee‐level surveys of HR practices to establishment‐level data on service quality, labour efficiency and profitability to examine the effects of HR practices on these outcomes. We find that establishments with greater use of high involvement practices have significantly higher service quality, which mediates the relationship between HR practices and profitability. Findings for labour efficiency are positive, but generally not significant. These findings also have implications for the quality of jobs.

Suggested Citation

  • Jae Eun Lee & Rosemary Batt & Lisa M. Moynihan, 2019. "Strategic Dilemmas: How Managers Use HR Practices to Meet Multiple Goals," British Journal of Industrial Relations, London School of Economics, vol. 57(3), pages 513-539, September.
    • Handle: RePEc:bla:brjirl:v:57:y:2019:i:3:p:513-539
    DOI: 10.1111/bjir.12433
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    References listed on IDEAS

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    Cited by:

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    3. Michael David Maffie, 2022. "The Perils of Laundering Control through Customers: A Study of Control and Resistance in the Ride-hail Industry," ILR Review, Cornell University, ILR School, vol. 75(2), pages 348-372, March.

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