Question

Discuss potential tensions between taking into account cultural and institutional drivers
      supporting  differentiation in HRM, and standardization in the areas of recruitment and
      compensation.  How would you handle these tensions. Provide one example.

Answer 1

Differentiaton in HR refers to having different practices of handling and managing the individuals and group of employees based on whate value they deliver to the organisation and how differently you are approaching them.

The possible tensions that are created following a differential approach in HR is that it is costly, time consuming and also difficult to perform. Every individual in the organisation has different needs and thus understand what an employee wants and how to cater them accordingly would require cost investment, time investment and also difficult to conduct the same analysis.

On the other hand, standardisation in the recruitment and HRM techniques refers to using the standard and predefined techniques to recurit and select the employees without having any new approaches or techniques to try.

Being it cost effective and time effective, this technique of standardisation would have the potential tensions of not having the new talent to be recurited, not adapting as per the changing market needs and not meeting the tailored needs of the employees thus relating to the lower morale of work and job satisfaction in the organisation.

Studying the various tensions above, I would rather handle these tensions by adopting and framing such organisational policy where a balance is maintained of following standards and innovation at a balanced manner. For example, Google uses standards to recurit people but these standards are flexible. When you know you need certain qualification for this job title and position by the employee, Google gave importance to both qualification and skills a person is holding while recruiting. Thus, giving a balance and also innovation where the employees are being satisfied and the standards are also meeting in the HR activities to achieve goals and objectives of the firm.