Paper instructions:
Jeffrey Sonnenfeld and Maury Peiperl have proposed a typology of career systems in which organizations are classified as one of four distinct strategic staffing
types: fortress, baseball team, club, or academy (see attached pages). Analyze your current or former employer according to this typology system by answering the
following questions:
Which strategy type does the employer most closely match? Why? (Your analysis should include a discussion of the employer’s overall HR strategy focus, and its
policy implications for employee entry, development, and exit.)
In a memo format, advise the leadership of your current or former employer on which policies, if any, would you change? Why?
Information needed to complete assignment:
CLASSIFYING HUMAN RESOURCE TYPES
Greater understanding of industrial and strategic differences can be obtained by examining different classifications of strategic types. Interestingly, principles
of enlightened management suggest that companies should develop then” employ-ees, strive toward providing employment security, and seek to have supplies of internal
candidates prepared for promotion when vacancies occur. Nonetheless, some companies do not manage their human resources in accordance with these principles, nor is
there any indication that they should. In fact, promises of job security, committing too much of the company’s resources to human resource programs, and placing too
much emphasis on employees’ feelings about strategic decisions can make them uncompetitive. 75 An analysis of one company’s experience with employment security
policies following the plunge of its stock revealed the following: “One discovery . . . was that the provisions of employment security did not automatically motivate
employees to learn new skills, change jobs, or relocate to the extent demanded by the crisis.” 76 Examples such as this demonstrate that the application of human
resource management principles must be tempered by industry differences. Systematic differences in utilization of human resource practices may be explained by a
typology of career systems developed by Jeffrey Sonnenfeld and Maury Peiperl. Companies in this typology are classified as ( 1) clubs, ( 2) base-ball teams, ( 3)
academies, and ( 4) fortresses. This typology has been overlaid on an earlier typology of strategies developed by Raymond Miles and Charles Snow. In the Miles and Snow
typology, the corresponding four basic types of strategies are, respectively: ( 1) defenders ( low- cost producers), ( 2) prospectors ( product differentiators and
innovators), ( 3) analyzers ( imitators of successful prospectors and focused operations), and ( 4) reactors ( companies with dysfunctional strategies). Figure 4- 3
presents the Sonnenfeld and Peiperl model. 77 The personnel policies followed by companies in each of these categories provide marked contrasts. For economy of
policies are often “up or out” as those passed over for promotion are terminated. Not surprisingly, in such companies, performance appraisals are more results
oriented. 81 The trading of baseball players from one team to another provides a good example of career paths and the high talent and high turnover of the
organizations in this category. Another example of career progression in this category might be the local television reporter who moves up to a national news network.
Empirical evidence of distinctive ” make” or ” buy” patterns of human resource management practices has been established in a study of MBA students who have accepted
offers of employment. 82 Closer examination of the baseball team quadrant indicates some potential contradictions. Sonnenfeld and Peiperl’s category of baseball teams
does not correspond completely with Miles and Snow’s prospector category because certified public accounting ( CPA) firms and law firms probably do not operate at the
same level of innovation as prospectors such as Hewlett- Packard. Firms emphasizing innovation, the prospectors in Miles and Snow’s typology, have also been found to
place a heavier emphasis on training than less innovative companies. There is also a need for lower turnover in such firms because the loss of personnel can be
extremely disruptive. 83 Great disruption results from turnover in these firms because their quick rate of learning often leaves organizational knowledge unrecorded.
Explanation for this apparent contradiction may require more complex descriptions of baseball teams in Sonnenfeld and Peiperl’s typology. Even without considering
prospectors, within the baseball team quad-rant itself, law firms and CPA firms do indeed have high turnover, but typically it is confined mainly to the lower levels.
The employees at the higher levels, partners, have very low turnover as they are frequently able to reap the financial rewards of managing the efforts of junior
professionals. Academy. Academies are somewhat of a hybrid in that they are both product innovators and competitors in long- run production roles. They attempt to
exploit niches in the marketplace. Types of companies in this category include manufacturers of electronics, Pharmaceuticals, consumer products, and automobiles. Texas
Instruments is an example of a successful academy. The personnel policies of the academy, which follows a focused strategy, fall between the two extremes of clubs and
baseball teams. In this category, there is substantial emphasis on development but some outsiders are hired to fill higher- level positions. These companies both
“make” and “buy” human resources. There are extensive career paths within the companies themselves. Performance appraisal tends to emphasize process. 84 Although the
personnel policies of these companies differ, they are consistent with their companies’ overall strategies. Fortress. Companies in this category are in highly
competitive markets and are at the mercy of their environments. Examples of the types of companies in this category include those in hotels, retailing, publishing,
textiles, and natural presentation in the following discussion, the characteristics of companies in the Miles and Snow categories are covered within the Sonnenfeld and
Peiperl categories. Club. When the strategy is to be the low- cost producer, the focus is on cost control. With cost control as the guiding principle, predictability
and a short-term focus are valued. 78 Companies in this category compete by increasing their efficiency in controlling costs, maintaining quality, and providing
customer ser-vice. Types of companies in the club category include airlines, banks, utilities, and governmental agencies. Club personnel policies emphasize development
and training, as employees are hired in only at entry level, talent is developed within the organization, and higher- level vacancies are filled by promotions from
within. There is an expectation that employees will remain with the company for a long period and there is low turnover. In terms of “make” or “buy,” these companies ”
make” their own higher- level employees. A company well known for its managerial excellence in this category is Lincoln Electric. 79 Baseball Team. Companies in this
category pursue an innovation strategy. As such, they design and produce new products and routinely redeploy resources from discontinued products to the development of
new ones. Hewlett- Packard is an example of a successful company in this category. In Sonnenfeld and CHAPTER 4 Strategy Formulation 141 FIGURE 4- 5 Strategic Staffing
Policies Source: Modification of figure from Jeffrey A. Sonnenfeld and Maury A. Peiperl. “Staffing Policy as a Strategic Response: A Typology of Career Systems,”
Academy of Management Review 13, no. 4 (1988): 591. Reprinted with permission of Academy of Management Review. Peiperl’s framework, investment banks, broadcasting
companies, software developers, entertainment companies, and biological research companies fit this category. Companies in this category also can be professional firms
such as law firms, advertising agencies, consulting firms, and accounting firms. When innovation is the strategy, those organizational conditions that foster risk
taking, cooperation, creativity, and a long- term perspective are valued. Accordingly, companies pursuing an innovation strategy invest in training their employees and
managers. In addition to providing more training, they also tend to train their employees in skills that apply beyond their present jobs. These differences high-light
the benefits of integrating strategic planning and human resource planning. 80 The baseball team brings in talent at any level within the organization and does not
place much emphasis on development. Instead, there is a “buy” approach to talent. Nonetheless, there also may be development through rapid assignment changes. However,
career paths often involve interorganizational moves as individuals take jobs with other companies as they develop and command greater compensation, responsibility,
and professional stature. Promotion policies are often “up or out” as those passed over for promotion are terminated. Not surprisingly, in such companies, performance
appraisals are more results oriented. 81 The trading of baseball players from one team to another provides a good example of career paths and the high talent and high
turnover of the organizations in this category. Another example of career progression in this category might be the local television reporter who moves up to a
national news network. Empirical evidence of distinctive ” make” or ” buy” patterns of human resource management practices has been established in a study of MBA
students who have accepted offers of employment. 82 Closer examination of the baseball team quadrant indicates some potential contradictions. Sonnenfeld and Peiperl’s
category of baseball teams does not correspond completely with Miles and Snow’s prospector category because certified public accounting ( CPA) firms and law firms
probably do not operate at the same level of innovation as prospectors such as Hewlett- Packard. Firms emphasizing innovation, the prospectors in Miles and Snow’s
typology, have also been found to place a heavier emphasis on training than less innovative companies. There is also a need for lower turnover in such firms because
the loss of personnel can be extremely disruptive. 83 Great disruption results from turnover in these firms because their quick rate of learning often leaves
organizational knowledge unrecorded. Explanation for this apparent contradiction may require more complex descriptions of baseball teams in Sonnenfeld and Peiperl’s
typology. Even without considering prospectors, within the baseball team quad-rant itself, law firms and CPA firms do indeed have high turnover, but typically it is
confined mainly to the lower levels. The employees at the higher levels, partners, have very low turnover as they are frequently able to reap the financial rewards of
managing the efforts of junior professionals. Academy. Academies are somewhat of a hybrid in that they are both product innovators and competitors in long- run
production roles. They attempt to exploit niches in the marketplace. Types of companies in this category include manufacturers of electronics, Pharmaceuticals,
consumer products, and automobiles. Texas Instruments is an example of a successful academy. The personnel policies of the academy, which follows a focused strategy,
fall between the two extremes of clubs and baseball teams. In this category, there is substantial emphasis on development but some outsiders are hired to fill higher-
level positions. These companies both ” make” and “buy” human resources. There are extensive career paths within the companies themselves. Performance appraisal tends
to emphasize process. 84 Although the personnel policies of these companies differ, they are consistent with their companies’ overall strategies. Fortress. Companies
in this category are in highly competitive markets and are at the mercy of their environments. Examples of the types of companies in this category include those in
hotels, retailing, publishing, textiles, and natural resources. 85 Because companies in this category are essentially reactive, there are few systematic strategic
implications.
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