Human resource management in diversified organizations: a strategic management perspective

Abstract

This study deals with Human Resource Management (HRH) policies and Practices of diversified organizations. Earlier research has found the strategy of diversification to influence organization structure & design top management's Job Strategy making process and economic performance of organization. Implications of diversification strategy for Human Resource Management have. However not been directly and adequately researched. This study is an attempt to fill this research gap. Existing literature indicates that diversified organizations need to be understood as separate organizational entities. Two research objectives set to guide this study therefore were: (a) To explore and understand the effects of strategy of diversification ‘on people- related issues faced by suchorganizations: and (b) To explore and understand the structure ofHRM function in diversified organizations. The scone of this workcovered only the HRH Policies and Practices of executives.Given the exploratory nature of the research case-study method was used. Three organizations were studied and data were collected through unstructured and semi-structured interviews, Secondary sources, internal documents and annual reports. The analysis was carried out by identifying the commonalities and differences in the three cases and then explaining them using certain dimensions related to organizational characteristics which were identified from the analysis of the cases. The findings of this research confirm that the strategy of diversification adds complexity to the Human Resource Management function the degree of this complexity depends. However, on a variety of factors. The analysis indicates that diversified Organizations over a period of time tend to centralize their HRH function at head office. The data reveal that the HRH function in diversified organizations is shaped by three forces namely interests of HRM manager’s interests of divisional heads and interests of employees in general. These three forces are supported by the ton management in varying combinations and it is this- combination which eventually has a decisive influence on the HRH function. Implications of the findings for management theory and practice and also discussed.