Firms that are high on uncertainty or that operate in volatile environments would benefit most from HR strategies that involve:
A) variable pay and flexibility.
B) control emphasis and fixed pay.
C) centralized pay decisions and explicit job descriptions.
D) internal recruitment and a formal hiring process.

Question

Quizplus · Accepted Answer

Firms that operate in uncertain or volatile environments need to be flexible to adapt quickly to changing circumstances. Variable pay is a good way to incentivize employees to work hard and achieve goals, while flexibility in work arrangements allows for quick responses to unexpected situations. Control emphasis and fixed pay are more suitable for stable environments, while centralized pay decisions and explicit job descriptions may not be as effective in uncertain environments where things can change rapidly. Internal recruitment and a formal hiring process are important practices for any firm, but they do not directly address the needs of firms operating in volatile environments.

Firms That Are High on Uncertainty or That Operate in Volatile