Assertion (A) : The more differentiated the HR environment, the more uncertain it shall be. Reason (R) : Organisations are dependent in an environment where human resources are not widely available.
(A) is correct but (R) is not the right explanation of (A)
Option 3 — (A) is correct but (R) is not the right explanation of (A) is correct.
The assertion is sound. A more differentiated HR environment is one with a larger number of distinct, specialised elements (varied skills, roles, labour markets, regulations). Greater differentiation means more variables interacting, so managers can predict outcomes less confidently — environmental uncertainty rises with the degree of differentiation. This is standard contingency/organisation-theory reasoning.
The reason is also a true statement in itself — organisations do depend on their environment for human resources, and scarcity of labour creates resource dependence. However, it explains uncertainty caused by scarcity/dependence, not uncertainty caused by differentiation. Since the reason addresses a different cause than the one named in the assertion, it cannot be the correct explanation of (A).
Why not the others: Option 1 ignores the explanatory link; Option 2 wrongly claims (R) explains (A); Option 4 is false because both statements are individually correct.
Takeaway: both statements are true, but differentiation (A) and resource scarcity (R) are separate drivers of uncertainty.
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