Use formula to display text or actual name of a list record type in Workflow

Use Formula = nlapiGetFieldText('status'). This will display the list record value in text or actual name. Here's a sample workflow.

1. Create a new Workflow. Navigate to Customization > Workflow > Workflows > New

2. Define Workflow Basic Information
    2.1 Record Type = Case
    2.3 Execute as Admin = Checked

3. Define Workflow Initiation
    3.1 On Create/On Update = TRUE
    3.2 Trigger type = All

4. Create Workflow State. Click New State and Set Name = Entry

5. Add action to State. Click New Action
    5.1 Select Set Field Value
    5.2 Trigger on = After field edit
    5.3 Client Fields = Any
    5.4 Parameters = Title
    5.5 Formula = nlapiGetFieldText('status')

To test:
1. Navigate to Lists > Support > Cases > New
2. Edit Client Field specified in Step no. 5

Result: Subject field display either 'In Progress', 'Not Started', 'Escalated' etc.