Schuler and Jackson (1987) matched HRM practices with strategy using Miles and
Snow (1984) and Porter (1980) typologies. Porter (1980) proposed three strategies of
innovation, cost reduction and quality enhancement that organizations can use to
achieve competitive advantage. Schuler and Jackson (1987) argued that HRM will
prove effective only where the organization emphasizes the importance of either
quality enhancement or innovation within its business strategy. Organizations using
a cost-based strategy, approach HR strategy by emphasizing numerical flexibility
and wage cost minimization. Hoque (1999, p. 421) noted that ‘‘in such a situation,
the values and goals imbued within HRM would be inconsistent with the
organization’s primary cost reduction goals.’’