Against this background, our study is focused on comparing the productivity of four
different firm categories. Traditional planners (category I) are firms that do not strive for
vertical alignment during the strategic planning process or lack vertical alignment
consistent with the lack of strategic planning. Moderate planners on the other hand take
either a top-down approach (category II) or a bottom-up approach (category III) to
achieve a fit between HR practices and organization strategy. Finally, advanced planners
(category IV) use both vertical alignment mechanisms.