This study shows different organizational strategies have different influences on human capital input and value-creation output, and especially, when the firm’s environmental adjustment is high, organizations tend to allocate more external employees. This demonstrates that allocating more external employees to reduce budgets will result in higher employee turnover, greater recruiting and training costs, and potentially poorer service. Instead of merely cutting costs, this study suggests that hospitality firms might consider ways to re-engineer their companies, particularly their HR practices, towards a higher level of quality. Human capital is a unique asset within an organization because the arrangements of employees are different from each other. Consequently, to balance this contradiction, effectively allocating different types of employment modes is the most important way to maintain the competitive edge within an organization. Key Words: Organization Strategy, Human Capital, Core Competence, Mode Fit, Employment Modes.