Selected HR Strategies That Fit Porter’s Three Major Types of Business Strategies

Business

Strategy

Common Organizational

Characteristics

HR Strategies

Overall

cost

leadership

• Sustained capital investment and access to capital

• Intense supervision of labor

• Tight cost control requiring frequent, detailed control reports

• Low-cost distribution system

• Structured organization

and responsibilities

• Products designed for ease in manufacture

• Efficient production

• Explicit job descriptions

• Detailed work planning

• Emphasis on technical

qualifications and skills

• Emphasis on job-specific

training

• Emphasis on job-based pay

• Use of performance

appraisal as a control device

Fig. 1-9a

© 1998 by Prentice Hall

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