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International Studies Center Human Resource Management HRM -MANAGING PARADOX "As we continue to operate in an era of rapid change, managers will have to become more skilled in managing paradoxes and competing demands...." - Gareth Morgan Budapest, 11 May, 2005 INTRODUCTION Modern businesses of the 21st century are rarely just black or white, therefore the ability to manage the paradoxes and live with uncertainty are critical. Most executives find they need to balance between two almost equally good choices and follow-up accordingly. For example: compete or collaborate, teamwork with individual achievement, and firmness with compassion. The ability to change and adapt to the rapidly changing business environment is a difficult task. Paradox is an event or phenomenon involving apparent contradictory, mutually exclusive elements that are both valid and operate simultaneously. Putting this in other words this event or phenomenon containing opposite ideas that make it seem absurd or unlikely although it is or may be true in fact. Fundamentally paradox is a mental construct. This list represents some examples of paradoxes: * Conscientiousness increases performance but discourages creativity and innovation. * Intelligence leads to higher performance, but greater boredom and dissatisfaction. (Training) * Learning a task increases performance of that task but lessens the performance of other tasks. (training) * A specific goal leads to higher performance but leads to a neglect of other important goals. * Rewards for performance increases performance but decreases performance on tasks not rewarded * It often happens that not the candidate who scored highest points during testing is offered the position, but someone, who fits the company culture, and organisation and the actual team best * The management should consider the trade-off between recruiting employee with high level of experience and advanced skills or recruiting employee with relatively low skills and investing into training and development. Some of them and other paradoxes are going to be discussed in details in this paper. ...read more.


After this he starts to think that his knowledge is expanding borders of his position, that he deserved more challenge, more opportunities, more compensation. It is impossible for people to develop forever staying on the same place, and therefore without any perspective to move higher, strong motivation to leave the company for better satisfaction of abilities, knowledge and experience appear. Also we should not forget, that further development and training is a big incentive for people. Actually, this is some kind of a prerequisite for any type a job. Because people usually tend to plan their career. And without personal development it is impossible! You will never get promoted is you are not acquiring new knowledge and skills. Basically, it is impossible not upgrade yourself during you work time. The question is if special training is a special requirement for taking the position or it is not planed and expected to happen "someday" in future. So should we take those who are not willing to educate themselves?! This sounds ridiculous! But I not, then where to promote the person that is not fitting his level any more?? Should we fire somebody else? In our opinion the only solution is the growth of the company. Only in this case we and can keep trained employee with the firm, so and promote him. There is only one small condition - company has to grow with the same speed as employees are developing. Is it possible? Depends on a management of the company... CAREER MANAGEMENT & EQUAL EMPLOYMENT OPPORTUNITIES Equal Employment Opportunity (EEO) gives all people the right to be considered for any job for which they are skilled and qualified, ensuring that the best person for the job is employed. EEO is based on the principle of recruiting and promoting people on merit. EEO also promotes a working environment free from harassment of any kind, and access for all staff to job-related opportunities, e.g. ...read more.


However, these employees have the necessary experience with the company and therefore can be trusted with the bigger responsibility. On the other hand, younger employees probably do not mind traveling abroad often even for less compensation. They are more mobile because they still do not have a family to be taken care of and also young people are generally more flexible. However, they do not have the necessarily work experience at the company that could be required for tasks they have to perform abroad. The company should choose carefully the employees who will attend official meetings; negotiations because these employees will represent their company abroad and any failure (because of the lack of experience) can seriously hurt the company's image. It is again an important HR paradox that HR mangers should be aware of when making recruitment decisions. COMPENSATION & BENEFITS Merit pay Performance Level Quintile, % 1 2 3 4 5 Superior 11 11 10 9 8 Above Average 9 9 8 7 6 Average 7 7 6 5 5 Below Average 0 0 0 0 0 Poor 0 0 0 0 0 Because the purpose of the guidelines chart is to balance conflicting pay goals, it compromises, by design, the relationship between merit increases and performance appraisal ratings. The highest rated performers will not always be the employees with the highest percentage increase. It is rather evident that superior performers in quintiles 1,2, and 3 can receive a percentage increase as much as or even more than that of an outstanding performer in quintile 5. As a result, employees are likely to learn that pay increases are not determined just by performance. CONCLUSION These paradoxes cannot be resolved, at best they can be understood and harmonised with. Crucial to harmony, is the development of a framework for action that would dictate the nature of systems and processes in the organisation, in short the development of a culture which is infused with both ethical values and the goals and processes of the Human Resource Function. ...read more.

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