Firms with nonroutine production processes (such as advertising firms), benefit more from flexible human resource practices that nurture creativity, innovation, and entrepreneurship than those that focus on predicting employee performance.

Question

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Nonroutine production processes require employees to be creative, innovative, and entrepreneurial. Predicting employee performance may not be as useful in these firms as fostering an environment that encourages these qualities. Flexible human resource practices can help achieve this.

Firms with Nonroutine Production Processes (Such as Advertising Firms), Benefit