Balanced Contracting in the Ambidextrous Organization

Abstract

This paper addresses the challenge for Human Resource Management (HRM) to contribute to ensure »flexibility« and »stability« simultaneously by generating a portfolio of employees holding different career aspirations. It will be argued that »balanced contracting« is a key factor for »unlocking« the organization and fostering change and adaptation. At the same time it is ensuring necessary »stability« in the organization. As organizations become »ambidextrous« seeking »stability« and »flexibility« at the same time in order to »exploit« old businesses and »explore« new businesses (TUSHMAN/O REILLY 2002; O REILLY/TUSHMAN 2004), HRM must be able to align its »contracting« procedure to the different »organizational logic« of the »explorative business units« and the »exploitative business units«. It must attract and select predominantly individuals seeking a relatively stable long term employment and a traditional »organizational career« for the »exploitative business units« and at the same time predominantly individuals who are seeking a rather short term flexible employment relationships for the »explorative business units«. Being able to employ an appropriate »balanced contracting« will ensure that HRM contributes to maintain »stability« and to facilitate »flexibility« at the same time.