Two key strategies for Human Resource Management

Two gross generic categories of strategy seem to have had the greatest impact human resource management in recent years. Following a review of the Cynthia fisher classified strategies into two categories.

1. Growth-prospector-high-tech entrepreneurial strategies: Human resource management strategies under each mode are substantially different in terms of function. Human Resource management units in growth firms typically recruit al all levels from the external labor market in order to obtain enough employees at all skill levels to meet growth needs. They tend to assess based on the results they achieve rather than the process employ or their personal traits. They also tend to look to the long term for success and usually do not pursue innovative efforts that fail. Performance incentives serve as the basis for compensation; when bonuses and profit sharing and stock options are common, base salaries are modest. For this strategies organization must be-
a. Growth oriented
b. Prospector oriented and
c. High tech entrepreneurial oriented

2. Mature-defender-cost-efficiency strategies: Mature defender cost competitors follow opposite personnel actions. They tend to recruit primarily at the entry level and promote from within. They emphasize doing things the right way in assessing performance and focus on quantifiable short term results. Compensation is based on hierarchical wage structures determined in job based in hierarchical wage structures determined in job evaluation. Length of services loyalty and other rewarded rather than performance. Financial incentives may be present but tend to be available only too few select employee groups. Often time retrenchment and restructuring strategies which result in layoffs and reductions in force (RIF) occur. Under this strategy industry must be
a. Matured
b. Cost efficiency and
c. Defender.

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