Selected HR Strategies That Fit Porter’s Three Major Types of Business Strategies (cont.)

Business

Strategy

Common Organizational

Characteristics

HR Strategies

Differ-

entiation

Fig. 1-9b

© 1998 by Prentice Hall

• Strong marketing abilities

• Product engineering

• Strong capability in basic research

• Corporate reputation for

quality or technological

leadership

• Amenities to attract highly skilled labor, scientists, or creative people.

• Emphasis on innovation

and flexibility

• Broad job classes

• Loose work planning

• External recruitment

• Team-based training

• Emphasis on individual-

based pay

• Use of performance appraisal as development tool

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