Question

The fourth phase of HRM is ongoing. Current management thinking holds that:

A) employees are quite similar in terms of the rewards they seek.
B) the goals and aims of management must be achieved at all costs.
C) social influences are no longer important to most employees.
D) employees are often the firm's best competitive advantage.
E) employees are motivated primarily by compensation and benefits.

Answer 1

The correct answer is that employees are often the firm's best competitive advantage, reflecting the evolution of management styles from Theory X to Theory Y, where employees are acknowledged to possess intrinsic motivation and seek fulfillment in their work.

Step-by-step explanation:

The fourth phase of HRM suggests that employees are often the firm's best competitive advantage. Current management theories emphasize the significance of employees beyond merely being workers who perform tasks for compensation and benefits. Instead, employees are seen as integral to the innovation, growth, and overall success of an organization, especially when they are engaged and allowed to contribute to decision making.

Management styles have evolved from the traditional Theory X, which viewed employees as inherently lazy and in need of close supervision, to Theory Y, which recognizes that employees are motivated by more than just monetary rewards and seek fulfillment and responsibility in their work. This shift aligns with the increasing value placed on social influences, teamwork, and a participatory approach to organizational goals.

Additionally, concepts like stakeholder theory propose that companies should balance the interests of all stakeholders, not just shareholders, which includes considering the wellbeing and development of their employees. This holistic approach to management and organizational structure is crucial for modern businesses to survive and thrive in a competitive market.