The Strategic Role of Human

Resource Management
Selected HR Strategies That Fit Porters
Business Strategies
Business Common Organizational
Strategy Characteristics HR Strategies
Overall Sustained capital Efficient production
cost investment and access Explicit job descriptions
leadership to capital Detailed work planning
Intense supervision of Emphasis on technical
labor qualifications and skills
Tight cost control Emphasis on job-specific
requiring frequent, training
detailed control reports Emphasis on job-based
Low-cost distribution pay
system Use of performance
Structured organization appraisal as a control
and responsibilities device
Products designed for
ease in manufacture
Selected HR Strategies That Fit Porters
Business Strategies (cont.)
Business Common Organizational
Strategy Characteristics HR Strategies
Differ- Strong marketing
entiation Emphasis on innovation
abilities
and flexibility
Product engineering
Broad job classes
Strong capability in
Loose work planning
basic research
External recruitment
Corporate reputation for
Team-based training
quality or technological
Use of performance
leadership
appraisal as
Amenities to attract
development tool
highly skilled labor,
scientists, or creative
people.
Selected HR Strategies For Firms Low and High
on Different Environmental Characteristics
Environmental
Dimension
Low High

Volatility Control emphasis Flexibility

Efficient Innovation
production Generic training
Job-specific Variable pay
training
Fixed pay
Selected HR Strategies For Firms Low and
High on Different Environmental Characteristics

Environmental
Dimension Low High

Control Flexibility
Complexity
emphasis External recruitment
Internal Decentralized pay
recruitment decisions
Centralized pay Multiple inputs for
decisions appraisals
High
dependence on
superior