A paradox and contextual perspective of HRM

Purpose This study examines the paradoxical tensions faced by human resource (HR) managers, focusing on the interplay of contextual factors and strategic responses. It explores how contextual factors influence HR managers’ responses to paradoxical tensions. Design/methodology/approach Informed by Smith and Lewis’s (2011) dynamic equilibrium model of paradox, this study adopts a qualitative approach. Data were collected through 83 interviews with HR and line managers across eight banks in Pakistan, providing insights into the contextual dynamics and strategic responses to paradoxes. Findings The findings reveal three key paradoxes facing HR managers: long-term versus short-term orientation, transformation versus transaction and centralization versus decentralization. Contextual factors, including organizational size, ownership structure, sociocultural norms and technological infrastructure, shape the navigation of these paradoxes. Banks with a balanced approach to centralized oversight and decentralized decision-making exhibit greater capacity to implement hybrid HR structures that align strategy while adapting to local needs, while others face challenges due to resource constraints such as limited budgets, outdated technological infrastructure and limited skilled HR personnel coupled with hierarchical decision-making cultures. Practical implications This research suggests customizing HR strategies to address resource limitations and developing hybrid structures to balance operational and strategic priorities. Originality/value This study contributes to paradox theory by highlighting how contextual factors influence HR managers’ strategies in navigating paradoxical tensions. It underscores the importance of contextual adaptation in HR practices.