Paradox theory

The Paradox Theory entry includes sections that define the theory, highlight notable developments, illustrate its application to HRM, and outline future research directions. Introduced by Smith and Lewis in 2011, Paradox Theory characterises paradoxes as perceived contradictions intrinsic to individuals, groups, organisations, and institutions. These paradoxes possess three defining facets: they are oppositional, interdependent, and persistently enduring. The theory further delineates four categories of organisational paradoxes: learning, belonging, performing, and organising. With paradoxes potentially leading to tensions and conflicts, they are recognised as opportunities for proactive management, fostering innovation and competitive advantage, or defensively addressed, resulting in dysfunction. The chapter underscores the influence of national and organisational culture on paradox perception and management. In the context of HRM, the application of Paradox Theory is discussed, accentuating the necessity for practitioners to identify and address HRM-related paradoxical tensions. Traditional HRM practices often favour either/or solutions, often missing the potential benefits of balancing opposing tensions. The development of “paradox mindsets” and their impact on HRM practices is explored, alongside the prospect of proactive approaches yielding more sustainable outcomes. Future research avenues are proposed, including stakeholder experiences, multilevel paradox dynamics, and effective management of paradoxical tensions by HRM professionals.