Linking Competitive Strategies with Human Resource Management Practices

Author(s): Randall S. Schuler and Susan E. Jackson
Source: The Academy of Management Executive (1987-1989), Vol. 1, No. 3 (Aug., 1987), pp.
Published by: Academy of Management
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No. . 207-219 Linking Competitive Strategies with Human Resource Management Practices Randall S. Schuler and Susan E. tus quo and adapt their strategies and goals to the Another perspective holds that top managers are marketplace. a re- The results of the Hay study suggest that the cently released study conducted by Hay Group staffing practices of top management be tied to the na- Incorporated. values.3 Electric reorganization of the early 1950s. When a sonal characteristics of top managers. have been brought into Stroh since consultant on the first major organizational 1978. are not always helpful. businesses. outsiders fell 5% short.2 Here. Peter Drucker. commenting on the relationship between compensation and a strategy of innovation. and when we realized that they were going to Those that relied on inside talent fell short have quite different missions. change in American history. 1 panies with outsiders in one out of every five top managements jobs exceeded expected re- Within academia there has been similar growing aware- ness of this need. Recruiting outsiders as a part of strategy has observed that: been successful for Stroh Brewing Co. ular types of business strategies. turns by 20%.2 on Sun. [our] . in conjunction with the University of ture of the business because different aspects of busi- Michigan and the Strategic Planning Institute. what is needed manager characteristics such as personality.. The implication. For example. The same holds true ized we had to have quite different people for companies in declining industries: com- running them. Jones. 1987 ? The Academy of Management EXECUTIVE. expected return on investment by 10%. and all to recognize the onset of decline and tend to persevere that is needed is to match compensation and perform- in strategies that are no longer effective. . Some I myself made this mistake [thinking that 20% of its senior management team of 25 ex. They've been instrumental in trans. pp. . brewer. including President Roger T. 26 Feb 2017 15:37:32 UTC All use subject to http://about. .74. According to Reginald H. those with a low proportion of ticulated in several ways. one of the most frequent in. family-run brewery in Detroit. ness.jstor. the General forming it into the third-largest U. insiders are slow capable of exhibiting a wide range of behavior. top manag- ance appraisal practices with the nature of the busi- ers need to be recruited from the outside.S. 1987. so. of course. you can truly innovate within the existing ecutives. operating unit] 30 years ago when I was a Fridholm. . former chairman and CEO of the General Electric Company. we also real. Although this awareness is being ar. is that selecting needs top managers who are likely to abandon the sta- the right top manager is an important staffing decision. abil- is a stable group of insiders who know the intracacies ities. According to the study. of their goals by 20%. Jackson New York University Over the past several years there has been increased The result of such human resource staffing practices recognition that there is a need to match the char. skills. has been rather significant: acteristics of top managers with the nature of the busi- ness. I 207 This content downloaded from 45. 3.' volves the conceptualization and investigation of the relationship between business strategy and the per- Outsiders. and perspectives are matched with partic- of the business. once a small. 1. Vol. reports ness demand different behaviors from the individuals that when a business is pursuing a growth strategy it running them. Growth companies that staffed 20% of their top three levels with outsiders exceeded their When we classified. August. particular business is pursuing a mature strategy.

depending are discussed later. then.jstor. A critical choice we had to make in our study con- cerned which aspects of the business we were going to Competitive Strategy: Needed use. became our focus of attention. Many com. Competitive Strategies pensation plans. Consistent with previous studies. it stays in control longer and therefore should be innovation. and how to manage it. quality enhance- vative capacity. and the whole idea of pay- Crucial to a firm's growth and prosperity is the ing people on the basis of their performance ability to gain and retain competitive advantage. These were derived from the literature. ity enhancement strategy. Nevertheless. competitors are obliged to respond costs for ten years and no return. it is more useful to think about what is needed First. The innovation strategy is used to develop products or services different from panies go after this new and slight today and those of competitors. behavior modification. some overalap can occur. At the same time. on the business. using apart from the specific technical skills. not just for improvement outside the tive strategies that organizations can use to gain existing business. It was only when the company more effective. All are presented in this article. pure types applied to single business units or even sin- ing the behavior of top managers with the nature of the gle plants or functional areas. combinations.10 Emerging from his discussion are three competi- new." shall describe these three competitive strategies as However. we shall review the nature and importance from an employee who works with other employees in a 208 This content downloaded from 45.8 Using the for that linkage. we developed three dicting. business. there must be a rationale Porter's framework of competitive strategy. the primary focus here is on of- soon find they have neither. Consistent with previous research. This rationale gives us a basis for pre- competitive strategy framework. less attention has been given to the other em. and modifying both strategy archetypes of competitive strategy-PHRM practices and practices in specific circumstances. studying. way to do this is through strategic initiative. or ployees in the organization. while there has been much written on match. and then we shall describe the concept of needed role behavior that enabled us to link it. and cost reduction. and brilliantly."' Rather than thinking about task-specific SKAs. we decided to adapt strategy and HRM practices. Enhancing product and/or service quality is the primary focus of the qual- Similar results illustrating the power of perform. general manager-not only out of concern for MacMillan argues that firms that gain a strategic ad- vantage control their own destinies. plants. and motivation theories. it is plausible to find business units. the and thereby play a reactive rather than proactive role.' fering something new and different. This.117. MacMil- The result of it was that for ten years lan defines "strategic initiative" as the ability to cap- General Electric totally lost its capacity to ture control of strategic behavior in the industries in which a firm competes. We then developed is based on what is needed from employees examined each of the three archetypes in-depth. refining. and abilities (SKAs) required to perform a specific dressed issues regarding implementation and revision task. of the archetypes. 26 Feb 2017 15:37:32 UTC All use subject to http://about.9 To the extent one company innovate. In the cost reduction strat- ance appraisal and compensation to affect individual egy. and they accepted of competitive strategy. additional secondary data and field results. that GE recovered its inno. dropped this compensation plan and at the The concept of competitive advantage is de- scribed by Porter as the essense of competitive strat- same time organized the search for the truly egy.74. the rationale :secondary sources. Although we ment. Academy of Management EXECUTIVE advised top management. So. One in the preceding year came out of that.2 on Sun. sponsible for current operations as well as for managing tomorrow. we decided to Role Behaviors use the general notion of organizational strategy. it seemed functional areas pursuing two or more competitive reasonable to assume that the rest of the workforce strategies . ment. competitive advantage: innovation. would also have to be managed differently.7 On the basis of previous studies that looked at strategy Before developing a linkage between competitive and human resource practices. firms typically attempt to gain competitive advan- behavior have been reported in the areas of reinforce. we worked out one of the first systematic com. This. that the general managers would be re- competitive strategies and HRM practices. simply because tomorrow produces gains the initiative. knowledges. and our previous research. and ad. To the extent a himself but also out of concern for his firm gains an advantage difficult for competitors to re- group-postponed spending any money for move. That is. then. tage by being the lowest cost producer.

A less systematic approach to in- Behaviors novation is encouraging employees to offer suggestions for new and improved ways of doing their own job or Because the imperative for an organization purs.jstor. Very low risk taking ---. Paul. The highly successful companies allow both. along which employees' role behaviors can .13 The importance of roles and their potential dys- function in organizations. Highly repetitive. A. innovative behavior 2.High job (firm) involvement Adapted from R. created either formally through official corporate policy (2) a longer-term focus.2 on Sun. several role behaviors are assumed to be instrumental in the implementation of the competi- tiative to solve a problem in new ways or to tive strategies. particularly role conflict and cision of the highest levels of management or ambiguity.Very high concern for quality 5. S. "Human Resource Management Practice Choices.Very flexible to change 10. Of course. Very short-term focus ---. Very low concern for quality ---. along with the needed role behaviors from the employees. Highly cooperative.Highly creative. predictable behavior ---. Low job (firm) involvement ---.S. 3M has developed an informal doctrine of allowing employees to "bootleg" 15% of their time Innovation Strategy and Needed Role on their own projects.Very tolerant of ambiguity and unpredictability 11. August. This can be illustrated by describing the various undertake a development effort benefit from competitive strategies and their necessary organiza. Exhibit 1 shows several dimensions develop a proposal for change. St. Very low concern for quantity ---. ing an innovation strategy is to be the most unique Overall.Broad skill application 12. strategy of innovation. interdependent behavior. and dimensions shown are the ones for which there are even official top management decisions to likely to be major differences across competitive strate- gies.Very high risk taking 7.High preference to assume responsibility 9. Innovation [and new venture development] iors are actually best thought of as needed role behav- may originate as a deliberate and official de- iors. is well documented.74. autonomous behavior 4. Schuler.117. Youngblood. 1987 Exhibit 1 Employee Role Behaviors for Competitive Strategies 1." in R. MN: West Publishing. To encourage as many employees as possible to be innovative. then.Very high concern for quantity 6. Very comfortable with stability ---.'4 there may be the more-or-less "spontaneous" Based on an extensive review of the literature and creation of mid-level people who take the ini- secondary data. 26 Feb 2017 15:37:32 UTC All use subject to http://about. and V.) Readings in Personnel and Human Resource Management. manufacturing products. (3) a relatively high level of co- or more informally. High preference to avoid responsibility ---. Very high concern for process ---. conditions for innovation must be created. 1988. L. They can be haviors includes (1) a high degree of creative behavior. Narrow skill application ---."' tional conditions in more detail. (5) a moderate concern for 209 This content downloaded from 45.Very high concern for results 8. 3rd Ed. Huber (Eds. social environment. Very inflexible to change ---. for firms pursuing a competitive producer. interdependent behavior ---. the profile of employee role be- These conditions can be rather varied. S.Highly independent.Very long-term behavior 3.. According to Rosabeth Moss operative. Schuler. (4) a moderate de- Kanter: gree of concern for quality.'2 These needed employee behav. the spontaneous creativity of those below.

Bean's sales have increased tenfold while the number tion strategy requires people to work differently. In the company's Er. As a consequence of these cury Marine division. giving employees fications are flexible. (3) a modest Needed Role Behaviors amount of cooperative. Machine operators have gained greater oppor- rather than to the employing organization. As quality rises. CEO David Kearns defines quality as quantity of output. output cost per person. is the necessary ingredient. flexibility in the use of production processes and em- and thus a greater commitment to self and profession ployees.2 on Sun. This phenomenon has also occurred at dering about their fate. so does demand. This. the innovation strategy has significant im. Corning Glass. by poor quality.000 production workers-about the same number as in 1966 when it was producing one differ from ideas tossed into the traditional million vehicles. Academy of Management EXECUTIVE quantity. workforce. quality improvement involves minimization. the innova. (6) an equal degree of concern for process "total quality approach" are valuable. using minimal controls. Toyota is producing about 3. a maintenance employee suggested substituting one flexible tin mold Cost-Reduction Strategy and Needed for an array of fixed molds that shape the Role Behaviors wet ceramic product baked into catalytic converters for auto exhausts.74. For example. yet this demand tive action teams" to solve specific problems. be more involved and more flexible.L. as evidenced by the success of such innovative running the machines. they are also fol- and results. benefits may accrue to the firm as well as the em. strategy) on the same products or services.jstor. Because quality enhancement typically involves At Corning. part of each employee's job description. Johnson & Johnson. win Ceramics plant. team work is permitted and The implications of pursuing a competitive strat. in pursuing a compet- harder (cost-reduction strategy) or smarter (quality itive strategy involving quality improvement. . fewer come from employees. This has permitted greater in feelings of enhanced personal control and morale. making a Quality improvement often means changing the greater investment in human resources. and job classi- lecting highly skilled individuals. 26 Feb 2017 15:37:32 UTC All use subject to http://about. While policy statements emphasizing the tivity. committed to the firm and. tunities to learn new skills. and pursuit of economies of scale. and (8) lowed up with specific human resources practices: feed- a high tolerance of ambiguity and unpredictability. providing more processes of production in ways that require workers to resources for experimentation. Neverthe. As jobs change. the goods or services are made or delivered). (6) high concern for process (how "being right the first time every time.20 then. and L.117. then. According to risk-taking activity.L. and (8) commitment to the goals of James Houghton. and in order to carry through on employees are needed to produce the same level of out- their ideas Corning workers form short-lived "correc. and appraising performance must job classification systems. interdependent behavior. (7) a greater degree of risk taking. At Brunswick's Mer- for its long-run implications. good ideas for product improvement often greater employee commitment and utilization.' Often. chairman of Corning Glass Works. facilitated. source practices such as these that employees become 3M. but sheer volume of output is likely than emphasizing managing people so they work to increase as well. workers. pursuing an innovation strategy may result was reduced from 126 to 12. Not only is the level of quality likely to improve under plications for human resource management. Bean." The implica. (2) a Quality-Enhancement Strategy and more long-term or intermediate focus. This can mean a 210 This content downloaded from 45. and PepsiCo. can be met with proportionately fewer employees than previously. L. (5) a modest concern for At Xerox. decision making and responsibility are a egy of innovation for managing people may include se. The getting employees committed to quality and continual primary focus of these measures is to increase produc- improvement. allowing and even re. the number of job classifications conditions. overhead At Corning. the Raytheon Corporation. more discretion. In addition to having more productive suggestion box in that they get a prompt for."' It is because of human re- firms as Hewlett-Packard. (4) a high concern for quality. Thanks to automation and a cooperative Employees [also] give their supervisors writ. Rather these conditions. fewer are needed to repair the rejects caused mal review so the employees aren't left won. his company's "total quality approach" is about people. Honda. (7) low tions for managing people are significant. Thus.5 million vehi- ten "method improvement requests." which cles a year with 25."' back systems are in place. that is.'7 The profile of employee behaviors necessary for firms pursuing a strategy of quality enhancement is (1) relatively repetitive and predictable behaviors. work and do preventive maintenance in addition to ployee. of permanent employees has grown only fivefold. They inspect their own less. the organization. so warding occasional failure. hence. willing to give more. the characteristics of a firm pursuing the cost-reduction strategy are tight controls.

When deciding what human resource practices to Part and parcel of a promotion system are the cri- use to link with competitive strategy. The result has been that over the Recruitment past four years.24 labor force decreased by 17%. they all functional areas and to gain exposure and visibility share the goal of reducing output cost per employee. primary metals. the less adaptable the pro- human resource management.g. Federal Re- on the internal labor market. While this policy can serve as Electrolux. labor costs have been cut by shifting plants from training and career development opportunities if the states where labor is expensive to less costly sites. 1987 _~~~~~~~~~~~~~~~~ reduction in the number of employees and/or a reduc. within the firm. Either a broad or a narrow career path In summary. may gain in clarity. Recruiting internally essentially means a policy of household appliance industry where GE. For example. it is very important for most other firms are also reducing wage levels. Establish- with each of the three strategies? ing several ladders enlarges the opportunities for em- ployees to be promoted and yet stay within a given technical specialty without having to assume manage- rial responsibilities. output (goods or services).23 Career Paths Cost reduction can also be pursued through in- creased use of part-time employees. Companies can rely and AT&T. The criteria can choose from six human resource practice " . opportunities for promotion. Angell states. This clarity. but the time frame is vantage by pursuing the competitive strategy of cost likely to be much longer for broad skill acquisition reduction is as follows: (1) relatively repetitive and pre. Here.117. appraising. August. work rule changes.than for the acquisition of a more limited skill base. Although this decision may not be significant In addition to reducing the number of employees. The period of adjust- chy. but a flexibility to move employees around to develop them run-down of the staffing menu will illustrate how the more broadly. What the firm loses in flexibility. Most of the options are self-explanatory. Given these competitive strategies and the needed Another staffing decision to be made is whether t role behaviors. may benefit A summary of these menus is shown in Exhibit 2. These aspects are plan. organizations can teria used in deciding who to promote. dictable behaviors. On the other Notice that each of the choices runs along a contin. the more implicit the criteria.2 on Sun.1 % per year. productivity growth in manufacturing has averaged 4. (4) mod. e. (5) high concern for quantity of ties may be more limited over the long run. the profile of employee role behav.2' Similar measures have been taken at must make a number of decisions. 40%.jstor. versus 1. (2) a rather short-term focus. and training stances. (7) low risk-taking activity. there are several methods for reducingemployees to acquire skills that are relevant to many costs. motion system is to exceptions and changing circum- ning. and Maytag account for 80% of all produc- an effective reward. automation. 26 Feb 2017 15:37:32 UTC All use subject to http://about. the company must decide whether to estab- work simplification and measurement procedures. or they can rely on the external labor market ex- ment has made us more competitive. promotion from within. manufacturing back on the road to profitability. Since 1980. only those who fulfill the criteria exactly. for entry-level jobs. result of this is that a new breed of cost-effective firms are putting U. Establishing just one promotion Typology of HRM Practices ladder enhances the relative value of a promotion and increases the competition for it. the textile industry's menus is provided elsewhere. compensating. The Each of the six menus concerns a different aspect of more explicit the criteria. subcontractors."22 clusively. The promoted employees are to perform well. may enhance an employee's acquisition of skills and iors necessary for firms seeking to gain competitive ad. however. staffing." vary from the very explicit to the very implicit. an employee's career opportuni- est concern for quality.74.2% for the rest of In each of these areas. (6) primary concern for re- sults. and steel. hand. Thus. process works. the first choice in- Chrysler and Ford and now are being proposed at GM volving where to recruit employees.. and (8) a relatively Promotions high degree of comfort with stability. and job assignment The broader the paths. it commits a firm to providing tion. the employee and development. lish broad or narrow career paths for its employees. the greater the uum. in the jobs. (3) Although promotion may be quicker under a policy of primarily autonomous or individual activity. almost 30%. a business unit (or a plant) the economy. "We are invig- the firm and other levels in the organizational hierar- orating the manufacturing sector. other departments in serve Governor Wayne D. Whirlpool. what HRM practices need to be linked establish one or several promotion ladders.S. 211 This content downloaded from 45. narrow career paths. Although the details are vastly different. A more detailed description of all tion in wage levels. the greater the opportunity for flexibility. Reflecting on these trends.

Socialization psychological attachment and commitment by the em- ployee to the firm. Schuler.Implicit Job Analysis Job Simplification ---------.High Employment Security Hierarchical -----.High Employee Participation Short-Term Criteria -----. S. MN: West Publishing.Long Term Explicit Job Analysis --.jstor.74.Multiple Ladders Explicit Criteria ---------.Long-Term Incentives No Employment Security . firms convey few informal rules and establish new proce.Open Procedures Appraising Choices Behavioral Criteria --.. St. Systematic Individual Orientation -----. Remedial. With minimal socialization.Extensive Socialization Closed Procedures ---------.High Participation Training and Development Short Term --. Youngblood. S. is next socialized.Broad Paths Single Ladder ------.Results Criteria Purposes: Development.Formal Short Term ---------.. and perhaps less predictable behav- After an employee is hired or promoted. Paul. the more likely there is to 212 This content downloaded from 45.Flexible Package Low Participation ---------. 3rd Ed. Maintenance Low Employee Participation ------.High Base Salaries Internal Equity ---------.117.High Participation No Incentives --. he or she ior from the employee. Although it is probably easier A final choice to be made in the staffing menu is and cheaper to do this than to provide maximum so.High Employee Involvement Staffing Choices Internal Sources --. The cialization.Quality of Work Life Emphasis Spontaneous. Openness dures to immerse employees in the culture and prac- tices of the organization. Schuler.Broad Application Productivity Emphasis .Group Criteria Compensating Choices Low Base Salaries ---------. A. "Human Resource Management Practice Choices.Long Term Narrow Application ---------. L.High Participation Adapted from R. Academy of Management EXECUTIVE Exhibit 2 Human Resource Management Practice Menus Planning Choices Informal .Long-Term Criteria Individual Criteria ------. the result is likely to be a more restricted more open the procedures.Planned.Many Perks Standard.^---.Implicit Criteria Limited Socialization ---------." in R.Group Orientation Low Participation ---------.2 on Sun.) Readings in Personnel and Human Resource Management. and V.Job Enrichment Low Employee Involvement ---------.External Sources Narrow Paths -. 1988. Fixed Package ---------.Many Incentives Short-Term Incentives ---------. S. Unplanned -. the degree of openness in the staffing procedures. Huber (Eds.External Equity Few Perks ------. 26 Feb 2017 15:37:32 UTC All use subject to http://about.

A key aspect of the choices within the staffing ac. conveyor trolleys used primarily in the auto industry. "Chad" Frost made several attempts to diversify the to be stockholders and have more freedom to choose business. treatment of employees and some guarantees of em.74. (5) too heavily on one cyclical industry.25 Chad Frost diagnosed the problem as inflexibility. and sales people didn't know how to sell them. such as that make up their pay package. stock options) nents and later into material-handling systems. Inc. and (5) extensive and continuous oriented strategy turned out to be an exercise in 213 This content downloaded from 45. with sales of $20 million. first into manufacturing lawn mower compo- the mix of components (salary. President Charles pay rates that tend to be low. "including single-purpose managers. To facilitate a policy of open. What at first glance appeared to be a hardware- ployment security.117.28 Concerned about depending uity rather than external or market-based equity. (4) compensation systems that emphasize internal eq.jstor. (3) short-term. bonus. source practice choices include (1) relatively fixed (sta- Because these have been described in detail elsewhere. we offer three summary hypotheses. The new program was formally launched in term and results-oriented. Innovation Strategy An Innovative Strategy: One Com- Firms pursuing the innovation strategy are likely pany's Experience to have the following characteristics: (1) jobs that re- quire close interaction and coordination among groups Frost. when since it allows employees to select themselves into jobs. and to au- and the job itself. These prac- nation for promotion. These practices facilitate cooperative. storage-and-retrieval inventory control system. 26 Feb 2017 15:37:32 UTC All use subject to http://about. the key merical-controlled machines paired within 18 industrial HRM practices include (1) relatively fixed and explicit robots. "We had single-purpose machines and single-purpose peo- ple. Twenty-six old-fashioned screw ma- In an attempt to gain competitive advantage chines on the factory floor were replaced with 11 nu- through the quality-enhancement strategy. for ambiguity. interde. Frost is a manufacturer of overhead skills that can be used in other positions in the firm. Michigan. tices facilitate quality enhancement by helping to en- ness. training and development of employees. production people didn't know how to make pendent behavior that is oriented toward the longer them. key human re- choices stimulate and reinforce different role behaviors. bor costs." Quality-Enhancement Strategy Frost decided that automating production was the key to flexibility. which tion in decisions relevant to immediate work conditions would later be sold as a proprietary product. but that allow employees D. and (6) broad career floor conveyors and hoists. nents. and foster exchange of ideas and risk taking. term. is one company that has made a con- of individuals. identify with the goals of the organization and. firms need to make the relevant information sure highly reliable behavior from individuals who can available to .2 on Sun.. (4) relatively egalitarian late 1983.26 fit. results-oriented Hypotheses of Competitive performance appraisals. In attempting to gain competitive advantage by tivity or any other HRM activity is that different pursuing a strategy of cost reduction. (2) performance appraisals that are scious effort to match competitive strategy with human more likely to reflect longer-term and group-based resource management practices. Cost-Reduction Strategy but the faster the decision can be made. 1987 be job posting for internal recruitment and self-nomi. (3) a mix of individual and group tomate completely the front office to reduce indirect la- criteria for performance appraisal that is mostly short. Frost decided to design and build an automated job descriptions. ex- pertise. the more limited the involvement of employees in selection decisions. and efficiency. These attempts failed. (2) high levels of employee participa. The paths to reinforce the development of a broad range of engineers didn't know how to design unfamiliar compo- skills. The more secret the procedures. August. (4) close monitoring of market pay levels for use in making compensation decisions. These practices maximize efficiency by provid- ing means for management to monitor and control strategies and the role behaviors necessary for each. Such a policy is worthwhile. necessary. closely the activities of employees." he said. Located in Grand achievements. ble) and explicit job descriptions that allow little room their impact is summarized below. Strategy-HRM Archetypes and (5) minimal levels of employee training and devel- Based on the above descriptions of competitive opment. and the brief typology of HRM practices. (3) jobs that allow employees to develop Rapids. be flexible and adaptable to new job assign- it is a critical aspect of attaining successful job-person ments and technological change. (2) narrowly designed jobs and narrowly defined career paths that encourage specialization.

Em- tured to strike a balance between results (productivity) ployees' spouses are encouraged to attend these ses- and process (manufacturing). since the production pro. "The employees are challenged to advance by adding skills. have perfect attendance for four straight weeks receive nuses serve to foster other needed employee role be. between 3 and 4 hours.) innovative behavior. Impressive attendance figures also enhance an cooperative. Most executive perks have opmental rather than evaluational. Team leaders (not been eliminated. that facilitate product quality by examining Honda of For example. Employment security. which is intended to foster open.117. dictable and reliable behavior from its employees. the machinery is just one part. and turnover. In Frost's case. the initial employee orientation session. identifying the a real benefit in renovating a small to medium-size development of additional skills as a prerequisite for company. the structure of the organi- In our view. "If you're going to reap at local colleges. To help speed payrole information) by way of more than 40 terminals communication and remove any organizational sources scattered around the front office and factory floor. havior is not stimulated and reinforced by only one tion fund" that managers can tap at their discretion to human resource practice. It even goes further. this plant produces giving each worker 10 shares of the closely held com. All associates extensive training programs.) stant informal and formal training programs. For example. sume more responsibilities. of the renovation process. Frost was clearly embarking on a strategy of inno- vation. cars of quality comparable to those produced by Honda pany and by referring to them henceforth as "share. many of the choices the com- pany made about human resource practices were in. as. As it turns out.74. We can identify those human resource practices tion strategy. interdependent behavior courages employees to learn new skills by paying for is fostered by egalitarian HRM practices. associates who reward significant employee contributions. and take risks. (Even the form of the celebration In addition to getting and reinforcing reliable and can be creative. Inc. because Honda believes that spouse awareness of is a significant consideration. Attendance also influences the size of haviors. Frost instituted a quarterly bonus that is based on course. the latter sions. which is devel- ness of communication. into four. Honda has fewer layoffs through a 401(d) plan. formal performance appraisal process. By making the quarterly bonus dependent on the semiannual bonus (typically paid in spring and au- companywide productivity. Although pay rates (independent of holder-employees. At Honda. along with con- office. these role behaviors.29 With a current increase employee identification with the company by workforce of approximately 4. Ohio plant. Because this has made it harder to reward sulting company Frost formed early in the automation employees through traditional methods of promotion. minimize absenteeism. interdependent behavior. One possible explanation is that Honda knows tional long-term incentives consist of a standard corpo. since easiest part. Academy of Management EXECUTIVE mP_ _ human resource management. project to provide an objective. Of egy. How is this possible? important for an innovation strategy to succeed. job security is emphasized. hardest part is getting people to . an affiliated con." says Robert Frost has compressed its 11 previous levels of hierarchy McIntyre. of performance deficiences. tardiness.2 on Sun.500. and all employees have access to the supervisors) are trained in spotting and removing per- company's mainframe computer (with the exception of formance deficiencies as they occur. head of Amprotech. bonuses) may be as much as 30-40% lower than rates ployees can increase by making additional purchases at other Midwest auto plants. Addi. "outside" view. Most offices (including Chad the needs of the associates (employees) through the Frost's) lack doors. Honda's Quality-Enhancement Strategy tended to support the employee role behaviors identified as being crucial to the success of an innova. which may last Frost's compensation package was also restruc. and lower inventory rates of new cars than its competi- ployees a long-term focus. cooperative. Frost en. Rewards can range from dinner with predictable behavior. which is another behavior tors. that the delivery of quality products depends on pre- rate profit-sharing plan and a discretionary profit-shar. are also intended to give em.. a vital component of any innovation zation is such that there are only four levels between strategy is getting employees to broaden their skills. the company and its demands on employees can help cess is at the heart of the company's innovation strat. The bo. Training programs are tailored to ber of other ways as well. the company immediately set out to America's Marysville. both at the company and wear identical uniforms with their first names em- 214 This content downloaded from 45. This is partly out of necessity. a bonus of $56." The share ownership. facilitate Frost encourages cooperative behavior in a num. The "celebration employee's chances for promotion. which em. associates and the plant manager. 26 Feb 2017 15:37:32 UTC All use subject to http://about.jstor. and taking risks." assuming more responsibilities. to a belly dancing performance in the bility to change. perhaps the advancement. something so critical to quality as reliable be- companywide productivity. (Honda of America fund" meanwhile. In ing plan administered by Chad Frost. can be used to reward and reinforce has a policy of promotion from within. and established a "celebra. Honda's HRM practices en- Chad Frost to a weekend for an employee and spouse courage a longer-term employee orientation and a flexi- at a local hotel. the company is encouraging tumn). plants in Japan.

" UPS succeeds by its cost-re. 10% or even 20%. 1987 bossed. in an industry where Of the three competitive strategies described "a package is a package. UPS's founder. The modern health center adjacent to the UPS drivers. deciding which is best depends on several factors.jstor. a cost-reduction strategy may be the best way fective work standards has led not only to enormous to gain competitive advantage. and automation wouldn't be enough to sustain associate commitment and identification with Implementation Issues the organization's goal of high quality. compared with such approaches as wage 215 This content downloaded from 45. parking spaces are unmarked. All entry-level associates receive the engineers use time and motion study to set standards same rate of pay except for a 60-cents-an-hour shift for a variety of closely supervised tasks. At the Mercury the key to gains in efficiency and productivity in. Casey. duction strategy. such as the overnight parcel delivery enhance worker effectiveness. but also with their perceptions For example. in turn. 26 Feb 2017 15:37:32 UTC All use subject to http://about. cess refinements such as work clarification. Marine division of Brunswick and at Corning Glass creases. they also raise Parcel Service several central issues: Which competitive strategy is best? Is it best to have one competitive strategy or sev- Through meticulous human engineering and close eral? What are the implications of a change of compet- scrutiny of its 152." Without this perform at acceptable levels enjoy job security. earn approxi- main plant is open to all. tition are key factors. their own trucks. Breakiron. all of whom are Teamsters. competitive strategies.000 indust one cafeteria. A Cost-Reduction Strategy at United Although the results of these examples generally support the three major hypotheses. en. Works. United Parcel Service. Casey hired pioneers Comas. Certainly customer wants and the nature of the compe- Of all paths that can be taken to pursue a cost. "Our Which Competitive Strategy Is Best? ability to manage labor and hold it accountable is the key to success. a cost-reduction strategy may not be as fruitful standard/simplification method. the flexible work rules. UPS drivers do not Through the use of time and motion studies. though. of various colors. measurement. During the pursuing the cost-reduction strategy through work pro- day. employees who as ''us'' rather than "us" versus "them. as well as its reputation for produc- though only a beginning. Delco-Remy's practice of participative of needed role behavior from their employees. James E. Roadway. the product or service is relatively . itive strategy? vice (UPS) has grown highly profitable despite stiff competition. would have been no more inclined to buy their Fredrick Taylor to measure the time each UPS driver products even if the manufacturer could have passed spent each day on specific tasks. Honda.2 on Sun. Even here. and there is only performance of the workers. the success of these firms sug- ing quality products at competitive prices. particularly industrial trial buy- of time and motion study such as Frank Gilbreth and ers. These practices. The company also monitors closely the cost reduction. the company's senior vice-president of engineering. underlying attitude. If customers are demanding reduction strategy. put a pre. air-condi- tioned plant. Be. for example.117. such as its suppliers. and feedback.own UPS their brown trucks) with as much automation as has established very specific ways for workers to per- possible. is employees less tired at the end of the day. and then made changes in techniques to undifferentiated. highly repeti. it may be as important to do this for all employees. mately $15 per hour-a dollar or so more than the courage all associates to regard themselves collectively drivers at other companies. and UPS il- strategy goes beyond concern for its own HRM prac- lustrate how a few organizations systematically match tices. It is also concerned with the human resource their HRM practices not only with their articulated practices of other organizations. in con- cause specialists identify the best way to accomplish trast. In the 1920s. Thus. In addition. while it may be important to match the characteristics of top management with the strategy of the organization.000 employees. More than 1."32 away the sides of UPS trucks to study how the drivers If.30 are affected by strategic considerations. employee participation in job decisions is employee independence and ownership (drivers own unnecessary. According to Larry P. In return. was the rea- gests that HRM practices for all levels of employees son why Delco was selected by Honda as its sole sup- plier of batteries. here.33 The advantage of these latter approaches to form their jobs. zation. According to Mc- mium on efficiency. August. This method has been as a quality improvement strategy. the employees engage in short-term. The success of Honda's quality enhancement These descriptions of Frost. UPS engineers cut along savings of. "Customers. the differential. however. United Parcel Ser."'" In other words. it actually makes there is a choice. pursues the same strategy by combining tasks. say. gains in efficiency and cost reduction. the issues seem to be quality. standardi- tive role behaviors that involve little risk taking. industry. the one taken by UPS is the work quality.74. Al- management style. The establishment of ef.

Academy of Management EXECUTIVE concessions or workforce reductions. but it are very tight.2 on Sun. . UFCW at 60 stores in the Phil. However. behaviors while at the same time trying to manage the writing on the wall: Either reduce costs and be compet. ville. Each tage gained by being able to offer lower prices. 26 Feb 2017 15:37:32 UTC All use subject to http://about. Week article. nized as one of the lowest cost and highest quality pro- There may. are of paramount importance. that this separation is limited or that a single business menting the same scheme. changes in strategy should be ac- approach to quality enhancement may be reaping companied by changes in human resources practices. benefits. According to Mitchell Kapor of Lotus Development Corporation: In an experimental arrangement negotiated with the . Powers 1986 Consumer Satisfaction Index of automobiles suggests. the top manager's job is facilitated scheme at A&P. get a 0. there is another equally consuming and difficult to implement. According to a Business This may be the very essence of the top manager's job. is the amount of One Competitive Strategy or Several? time required to implement them. They'd you have to do about paradox is embrace it. it can be duplicated by simplifying reality. that Ford's dedicated By . tain things are very loose and other things margin supermarket business. As the U. can be relatively straightforward to im. that organizations may pursue more than one competi- duction to last. it is taking a long time to overcome the competitive advantage gained by the Japanese auto industry through quality improvement.500 in tually need to have multiple and concurrent competi- 1974 to a little more than 1. a quality improvement strategy.36 The result? An 81%"o increase in operating profits in 1984 and a doubling of A&P's stock price. Lincoln Electric is recog- lar contracts with their employees. While these examples indicate that might permit the success of a strategy of cost re. be some external conditions ducers of arc welders. workers took a 25% pay cut in two apparently contradictory things quite exchange for an unusual promise: If a store's well: We have to stay innovative and crea- employees could keep labor costs at 10% of tive. conflicts and tensions that may arise as a consequence. we have to do adelphia area. United. and Frontier Airlines negotiated simi. the Great At. it may be that organizations ac- shrinkage in the number of stores from nearly 3. As a consequence. To the extent such as Giant Food Inc. auto significant challenge. would have difficulty imple.5% of sales. For example.35 unit has multiple strategies. Cost reduction through wage concessions or employee reductions. .5% at So we have the kind of company where cer- 9. the union appears unwilling to see this by separating business units or functional areas that practice spread. Consequently.000 in 1982.S. teamwork and cooperation are Airlines installed a two-tier wage system for its pilots. Using multiple strategies results in the lantic & Pacific Tea Company (A&P) and the United challenge of stimulating and rewarding different role Food and Commercial Workers (UFCW) saw the hand. essentially eliminating the competitive advan.. At UPS.. have different competitive strategies.34 is sorting things into the loose pile or the tight pile and then watching them carefully. Change of Competitive Strategies The J.5% bonus at 11% of sales or 1. but at the same time we have to be sales-by working more efficiently or by tightly controlled about certain apects of our boosting store traffic-they'd get a cash bo. tive strategies. Inc. however. associates are encouraged to be innovative. competitive strategy in our examples. corporate behavior. this may be over- plement. tation and collaboration need to exist. Although the UFCW agreed with the incentive compensation Perhaps. The whole art of management worked. industry has experienced. is more time with this issue under control. It was a gamble in the low.D. however. After four straight years of losses and a tive strategy at a time.74.. or go out of business. Although we focused on the pursuit of a common though painful.117. valued and at Frost. But I think that what nus equal to 1 % of the store's sales. effective means of confron- By contrast. as their customers' de- 216 This content downloaded from 45.jstor. then. even whether by automation or quality teams. The year the group of associates that designs the most adoption of two-tiered wage contracts within the air. at Honda in Marys- others. To be a successful enterprise. unique or unusual transportation vehicle is awarded a line industry is a good example: Soon after American trip to Japan. itive. As the products of firms change. product and service quality Eastern. competitors of A&P.

ambiguity. Conse. Although it remains to be seen whether all tices to gain competitive advantage. or- that employees of a single firm may be exposed to dif. firms Professor Schuler was just recently visit- may offer outplacement assistance to another firm. Consequently. many can and have. he is serving on the board of the Eastern Academy of Management and is on the The recent attack on U. The likely result is that employees Management (3rd Ed. Graduate School of Business at New York Uni- quently. he has contributed over 14 chapters to books and has published over 70 articles in pro- fessional journals and academic proceedings. Office of Personnel Management. For those who wish not to. the constraint appears to be one the University of . 217 This content downloaded from 45.. even to another division in the company. 26 Feb 2017 15:37:32 UTC All use subject to http://about. the Randall S.D.37 These firms and others Planning Journal and is on the board of direc- are pursuing competitive strategies aimed at cost re.). ganizational uncertainty. and Organizational Behavior and practices with the selected competitive strategy. Human Resource Man- will experience conflict. the Maryland Bankers Association. U.117.A. Executive. For those and was also on the faculties of the University who have problems changing.74. August. the subject employees can adjust to such changes.g. job-related stress. employees may be asked the interface of business strategy and human to exhibit different role behaviors over time and they resource management.jstor. the success or failure of a firm is not likely to an active member of the Academy of Manage- turn entirely on its human resource management prac. Corning Glass. employees will face an ever-changing employ. the experiences Academy of Management Journal.S..S. professor of psychology at New York Univer- itive advantage and beat the competition-both do- sity. Owens-Illinois. Jackson.S. Conclusion Presently.. Marwick. His interests are stress management. and vation are misdirected. versity. not maintaining quality.g. Studies. While cost and market of California at Berkeley and has since been on conditions tend to constrain somewhat the choice of the faculties of the University of Maryland and competitive strategy. Department of Agricul- system of human resource practices need to be changed ture. firms may offer training of Maryland. and top regardless of industry. Schuler is a professor at the competitive strategies of firms will change. A&P. Cer- Human Decision Making. and innovation. from the University mestically and internationally. She is tainly. and Managing Job Stress. agement in the 1980s. duction. it appears that of this article. Case Problems in employee behaviors. 1987 mands change. A significant implication of this is international human resource management. management teams as creative problem solvers. how companies use their human resource prac- ployment. or ing professor at the University of Michigan. Thus. ceived his Ph. ment relationship. high participation) Professor Schuler has written and edited implies invoking another (e. Ph. and as the competition changes.38 U sonnel Psychology. ment and the American Psychological Associa- tices. and ignoring inno. Not doing so. He is editor of the Human Resource 3M. and frustration. Journal of Applied Psy- creased by systematically melding human resource chology. He re- source practices work together to stimulate and rein. For those attempting to do so. and Penn programs to facilitate the acquisition of necessary skills State University. Personal Computers for the PHRM. and Brunswick are doing.). and M. and Mill Rose. and course of employment. voke a particular practice (e. The Susan E. including the luxury. The key human re. and serves on the editorial board of Per- critical. however. we can research interests include human resource man- find firms pursuing these three competitive strategies agement practices. among others. low participation) that 15 books. is becoming more of a appeared in numerous journals. Ohio State University. He worked for a year at the and abilities as well as needed role behaviors. is associate aim in implementing these strategies is to gain compet. degrees from Michi- force particular needed employee behaviors. quality improvement. He is currently studying may be exposed to several different conditions of em. In addi- tion. but the HRM practices are likely to be tion.2 on Sun. Honda-Marysville. given what many firms like Journal of Management Group and Organization Frost. UPS. tors of the Human Resource Planning Society. entrepreneurship. Academy of of other firms suggest that effectiveness can be in- Management Review. firms for failing to keep editorial boards of the Academy of Management costs down. Professor Jackson's of degree rather than of kind. including Personnel and Human Re- is less likely to stimulate and reinforce the necessary source Management (3rd Ed. She received her Ph. and has Another implication is that all components of a consulted with the U. gan State University. Not to in.D. All firms are not seeking to gain competitive Her articles on these and related topics have strategy. Human Resource Management. Peat and implemented simultaneously.D. personnel and human ferent sets of human resource practices during the resource management.

December 31. "Change Masters nally Back on the Map?" Business Week. C. Snow (Ed. sion Processes. Olian and S. University of Michigan for their financial support of this competitive strategy. D. "Cutting Costs Without Killing the 5. p. 14. Hambrick and P. and Business Unit Effectiveness at Strategy Imple." in C. 22. 1978.). Jackson Matching Executives to Business Conditions. A. The Change Masters." Fortune. K. Conflict and Ambiguity in Complex Organizations." Human September 22.Q. "Organizational Behavior. 1980. teristics. 12. 1983. D. McComas. size and age of firm. 25. E. 1985.F. 2. New York: John Wiley. "Supporting Innovation and Venture 1982.C. Academy of Management EXECUTIVE ENDNOTES Management. Ilgen. what the firm has done in the past. 9. p." Industrial Relations. Snow. 92. 97. Szilagyi and D. Winter 1983. S. 1984b.A. 9. Ibid." Journal of 1. work. Toulouse. 399-412. Kanter. 1970. S. 15. R. Managing Human Assets.jstor. 26 Feb 2017 15:37:32 UTC All use subject to http://about. "The Strategic Design of Reward agement of Plateaued Employees. Kerr. January 1986. Other Schuler and I. Huber 8. Mills. 1-19.. For more on Electrolux's human re- 7. Hose. program to improve quality. 607-629. C. 38. 19. 1980. Managerial Charac. M. New York: The Free Press. October 13. 1984a. 2nd Ed. R.J.L. 237-253. Prokesch. S. what other Human Resource Management. 23. "Build. 92.S. November 17. T. 36. M. 1985. Byrne and A. sion Processes." in R. "Business Strategy and the Man. see Endnote 18 above. 241-255. M. Schweiger. Spector. 2nd Ed. 43-57. MI: Her- and J. 34-47. 9. Feder's "The Man Who Modernized Rewards: An Empirical Study. Leigh Cowan.R." Sloan Man. Mason. S.E. D. Schuler's panies Groom New Leaders or Buy Them?" Business Week. for Entrepreneurial Studies.M. Porter.M. 626-637." Journal of Busi- Managers to Strategies: A Review and Suggested Frame. Com- The authors wish to thank John W. D. Schuler. Journal. 1985. A. and Environment. Winter 1986. 9. 3rd Ed. 97. For detailed examples of how firms use their human (Eds. Hambrick and C.. 25. 17. and D. project. 94-95. Drazin. S." Organizational Behavior and Human Deci- Control and Its Relationship to Strategy-Making. Hold. 4. the Center 1985. J. eral Manager Characteristics: A Conceptual Examination. "Organizational Staffing: In.. Autumn 1984.K.C. Schneider. The following discussion is based on our survey and 1984. MacMillan. "An Interview with Reginald Jones.D. and M. Paul. pp. W. man Miller. tegrating Practice with Strategy.Q. Organization Design and Human Resources Management. p. "Managing the New: An Interview Business. Machine. S. and competitive advantage see I. R. K." Academy of Management Electrolux. 47-60.A. For a detailed presentation of Marine Mercury's 41. Choices. 1987. Youngblood. Kahn. 1988. Pritchard. tique of Research on Role Ambiguity and Role Conflict in Kets de Vries. 1986. Winter 1982. 16-78. 1987. A. New York: Academic Gupta and V. 19.M.. "Are America's Manufacturers Fi- York: Macmillan. 1984. New York University. Prahalad. and R. Lawrence. "Human Resource Management Practice Choices. Harvest: Con. see B.C. Dougherty and R. Organizational Dynamics. Resource Planning. "Matching Development in Established Companies. hierarchical considerations. Gerstein and H. 36. with Peter Drucker. 1985. March 1987. 1985.L. Schuler. D. A. 28." Academy of Management Journal. C." Academy of Management Review..R. D. "Strategic Selection: istrative Science Quarterly.R.) Strategy. Lee J. 1985. St. 141-155. 1985. Rynes. S.I. "Gaining Competitive Advan. For an extensive discussion of competitive initiative. J. Ibid. New York Times.74. Slocum. Porter. S. Pritchard. R. R." Organizational Behavior and Human Deci- Govindarajan. Business as Unusual. St. C. R." Journal of Busi.A.M. Inc. Paul. "Top Executives' Locus of Work Settings. Journal. Schuler. Fombrun.J." 13." Business Strategy. 1985.L. surement of Role Variables: Exploratory Examination of a ness Strategy. 25. K. "Bean Meshes Man. A. S. E." top management. pp. Schuler. "The Mea- verting Strategic Intentions into Reality." 1986. D. 1984. P. 253-269. Katz and R. Rutigliano. ment. Reisman. M. 133-154. and John Dutton for their many helpful sugges. and the Intricate Architecture of Corporate Culture Change. Hansen. E. 1983. and the 9. A. pp. W. Miller. Kanter. Prokesch. and R. MacMillan's "Seizing Competitive Initiative." in R. 193-206. 1980. view of what others have reported. of technology. unionization status. Rizzo. see R. 23. 1986. and findings reported on by others.E. "Human Resource Management Practice Greenwich. Kazanjian Human Resource Management Practices. Competitive Advantage.. The New Competitors.. S. New York: The Free Press. "Strategic Reward Systems. MN: West Publishing. October 1983. Youngblood (Eds. p. and R. D. the type Schuler. Winter 1985. 10." Academy of Management Journal. C. B.W. 46. and ." Annual The Organization as a Reflection of Its Top Managers. The Social Psychology of Gupta. and J. ness Venturing. 1984. Theory of Behavior in Organizations. K. 6." Human Resource and R. 18-28." Review of Psychology. December 23. 24. Lawler III.D." Management Review." Academy of Management Systems. and M." Admin- 41. 150-163. New York: The 20. pp. B. Zeeland. 16. p. "Business Unit Strategy. 18. "Implementing Manufacturing Innovations: 218 This content downloaded from 45.J. and S. and V. C. New York: Simon and Schuster. MN: West Publishing. H. "Role mentation. Mills. 35. A Academy of Management Review.) Readings in Personnel and Human Resource Manage- resource practices to gain competitive advantage. E. DePree. "A Meta-Analysis and Conceptual Cri- agement Review.E. observations. Press. J. firms are doing. Lirtzman. and S. New 21.117. Organizations. 1984. petitive Strategy. 1984. Ibid. Readings in Personnel and Human Resource Management. J. Porter. 4.W. Slocum. Cron. Gupta and New Approach. Structure. 76. R. 1986. Management Review. Jr.L. 21. 155-179. tions. 14. Scholer and S. Naylor. Rawlings.2 on Sun. Beer. and R." The New York Times. See Endnote 18. For a re- 3. "Fostering and Facilitating Entrepreneurship in Or. Academy of Management Review. 33-49. 170-183. and the Human Resource Planning Society." The Free Press. 28. CT: JAI Press. "Contingency Linkages Between Strategy and Gen. Kanter. Walton. and ganizations: Implications for Organization Structure and the legal environment and its structure (see R. "Upper Echelons: 11.E. factors that can influence the human resource practices are tage Through Human Resource Management Practices. "Should Com. "Diversification Strategies and Managerial source practices. 573-611. Govindarajan. 24. see R.

M." Business Week. L. Honda's Founder Is Still a 36. Fall 1986." Business Week. 44. other firms that may be upstream or downstream of the local nal. Drucker. and Contradictions 131-143. 37." Human Resource Management. Kanter. Albrecht and S. F. p." Human Resource Planning. "United Parcel Service Gets Deliv.." The New York Times. March "When Employees Make Concessions. "Frost. P. "Quality Means a Whole New Ap. Chira. Drucker. October 13. a Symptom of Corpocracy. M.M. 1986. June 16. The application of these human resource practices 31. 1986. 77.117. see J. January 12." A 30. 1987 Critical Choices of Structure and Staffing Roles. Competitive Advantage Through Human Resource Manage." Forbes. "Gaining description of corpocracy is found in M. Review.74. 101-105. For a discussion of relevant issues. 1986. M. K. San Francisco: Jossey-Bass. 1987. December 22. source Management. As reported in Schuler and MacMillan. Innovation and Entepreneurship. April 22. Desatnick. . "Kaizen and the Art of Labor Relations. Management." Human Resource Management. Green and J. Autumn York Times. "A Tale of Two Worlds. 1986. p. For additional collaborating information. The Boston Globe. Recent attacks on public and private firms have 35. 28. and R. "Cutting Costs Without Killing the (Endnote 30). January 27. R. For a further description." Human Re. ing to Keep the Customer. 515-538. "The New Workforce Meets the proach to Manufacturing. June 8. and S. 35. 1987. February 2. 1984. 48-57. Smith. 57-67. Berry's "Takeovers. McComas. P. Q. 1 and 23. 83-94. 34. Changing Workplace: Strains.jstor. Ibid. Mills. Rehder and 29." Per- Merwin. Dilemmas. Fiery Maverick. 1985. IL: Dow Jones-Irwin. August. 38. 1987.2 on Sun. 385-404). Machalaba. 103-113. Galante. M. Homewood. Albrecht. needed. 26 Feb 2017 15:37:32 UTC All use subject to http://about. "At 80. D. "Pul-eeze! Will Somebody Help Me?" in Attempts to Implement Participative and Entrepreneurial Time." Harvard Business 1987. Inc. see D. see R. May-June 1983. see Schuler and MacMillan 32. hierarchy or status to those based on performance or what's 27. 219 This content downloaded from 45. sonnel Journal. Manag. 1987." The New ment Practices. and R. ing Them. 1985. P." Fortune. ing with changing from human resource practices based on 1987. This description is expanded upon in detail by S. p. pp. For an New York: Harper & Row. "How A&P Fattens Profits by Shar- 26. been summarized by the use of the word "corpocracy. firm. December 1986. 1986. 249-250. McComas." The Wall Street Jour. Drucker. F. December 3. excellent discussion of the difficulties to be overcome in deal- The Creative Corporation. to strategy can be done by a firm on itself and even upon eries Done by Driving Its Workers. F. 33. Winter 1986.F.