Exploration, exploitation and human resource management practices in cooperative and entrepreneurial HR configurations

Abstract

Human resource (HR) practices for selection, performance appraisal, performance–compensation linkage and training are found to be less formalized in entrepreneurial HR configurations (exploratory) than in cooperative HR configurations (exploitative). Although less formalization may support more flexibility and improvisation, it was found to have the disadvantage of reducing process transparency, developmental feedback, performance–compensation linkage strength and the amount of training available. These findings are consistent with theories of exploration and exploitation, with their extensions to human resource management and leadership, and the view that HR systems and practice should be varied in light of the organizational processes to which they are being applied.

Keywords::

• exploitation
• exploration
• HR configurations
• leadership
• strategy
• structure

Acknowledgements

This project has been supported by the National Natural Science Foundation in China (Project no. 71072142, 71202147) and the Management of Innovation and New Technology Research Center, McMaster University.