Researchers have begun to study the relationships between human
resource management practices and other organizational character
istics such as competitive strategy, life cycle and technology. This paper
studies the relationship between a particular competitive strategy (inno
vation) and aspects of remuneration practices. Multivariate analysis using
F-tests is applied to examine the relationship across a sample of 156 firms.
The results support the hypothesis that an innovation strategy is associ
ated with a particular set of remuneration practices. The broader impli
cations are discussed: Human Resource Managers need to be conscious that
appropriate human resource practices should be selected to support the cor
porate strategy.
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