Not a Member? Get access to HR news and resources that you can trust.
Change can be scary, but deploying new HR software doesn't have to be.
Is your employee handbook ready for the New Year? With SHRM’s Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Get the HR education you need without travel expenses or time out of the office.
We don’t just visit a city, we take it over. Join the HR community in NOLA -- June 18-21, 2017.
Wayne Cascio, Ph.D., Professor and Robert H. Reynolds Chair in Global Leadership, University of Colorado
"It seems to be a law of nature, inflexible and inexorable, that those who will not risk cannot win."—John Paul Jones Paradoxically, one of the unfortunate byproducts of employment downsizing—a phenomenon that seems to continue unabated in both good and bad economic times—is that surviving employees become narrow-minded, risk-averse and self-absorbed. This happens at the very time when organizations need their employees to take risks in order to develop new products and services, to penetrate new markets, and to serve their customers better. Yet the term "risk" has come to imply a bad outcome. It may be more prudent, however, to rethink the concept of risk in light of two other considerations: uncertainty and opportunity.Uncertainty is the degree to which we are unsure about whether an outcome will occur and its consequences, good or bad. Risk refers to an undesirable outcome and its consequences. Finally, opportunity refers to a desirable outcome and its consequences. A prudent approach to human capital risk requires carefully distinguishing these three ideas. Uncertainty is not necessarily a bad thing, but it depends on the balance between downside risk and upside opportunity.HR Strategy and the Two Faces of RiskHR strategy refers to the processes, decisions and choices organizations make regarding how they manage their people. Indeed, a firm's competitive strategy and its HR strategy are interdependent.1 Both require a prudent and balanced approach to risk. HR strategy must optimally balance risk-taking and risk-mitigation, in line with an organization's competitive strategy and the role of human capital within that strategy.
HR strategy requires a focus on planned major changes in an organization and on critical issues such as the following:
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Join SHRM's exclusive peer-to-peer social network
SHRM’s HR Vendor Directory contains over 3,200 companies