Published by MBA Skool Team, Last Updated: September 21, 2016
What is Low Road?
Low Road is the adoption of short term, less effective human resource policies that results in poor business performance. Low road are the policies like improper training and development interventions, not able to provide job security as an employer, non-motivating reward & recognition policies etc.
Human resource function inside organization takes importance in areas of people management policies. The kind of policies adapted by HR has major impact on motivational level and performance of human resources. This finally impacts business performance of company.
As against this, bundle of policies with necessary level of interventions leads to higher corporate performance. Important thing to be understood in this context is right mix of policies to get higher corporate performance. Policies must be coherent i.e. single message should go to employees about employer.
Though it seems easy to recognise which are high road HRM policies, and why they should be adopted, employer do not follow at time these high road policies. This can be attributed to industrial relation practices prevailing in that country.
Strategic perspective to low road:
Adoption of low cost strategy, lead to low road. As organizations tries to reduce the cost in each and every activity, it puts pressure on human resource practices to keep practices in alignment with low cost. Low road practise keeps cost under control by reducing quality of worker employed. This lead to short term focus which affects long term corporate performance.
As against this, strategy of innovation brings new thing into the perspectives. Such strategy gives long term gains. This leads to human resource practices being formulated on long term basis. Here cost is no more focus. This high road practices becomes the guiding vehicle for long term corporate performance which results in benefit to all stake holders.
As seen low road are practices which could be adapted owning to situational factor but for long term gain this could be misleading.
Hence, this concludes the definition of Low Road along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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