Hr strategies Key concepts and terms

Table 3.1 continued

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58 Human Resource Management
Barriers exist between top management and HR – the former may not be receptive 
•
because they don’t believe this is necessary and HR is not capable of persuading them 
that they should listen, or HR lacks access to top management on strategic issues, or HR 
lacks credibility with top management as a function that knows anything about the 
business or should even have anything to do with the business.
It is up to HR practitioners in their strategic role to overcome these problems by getting to 
know what the business is aiming to do and what drives it (this should be possible even when 
strategies are ‘emergent’), understanding just how HR practices make an impact, and achiev-
ing access to strategic business decision making by demonstrating their credibility as an inte-
gral part of the management of the business.
2. Achieving horizontal fi t (bundling)
Horizontal fi t or integration is achieved when the various HR strategies cohere and are mutu-
ally supporting. This can be attained by the process of ‘bundling’, which is carried out by fi rst 
identifying appropriate HR practices; second, assessing how the items in the bundle can be 
linked together so that they become mutually reinforcing; and fi nally drawing up programmes 
for the development of these practices, paying particular attention to the links between them.
The use of high-performance, high-involvement or high-commitment systems as described 
earlier in this chapter is an integrating process. The essence of these systems is that they each 
consist of a set of complementary work practices that are developed and maintained as a 
whole. Other integrating activities or processes are talent management, performance manage-
ment and the use of competencies.
The factors that inhibit the achievement of horizontal fi t are diffi culties in:
deciding which bundles are likely to be best;
•
actually linking practices together – it is always easier to deal with one practice at a 
•
time;
managing the interdependencies between different parts of a bundle;
•
convincing top management and line managers that bundling will benefi t the organi-
•
zation and them.
These can be overcome by dedicated HR professionals, but it is hard work.
Setting out the strategy
There is no standard model of how an HR strategy should be set out; it all depends on the cir-
cumstances of the organization. But the typical areas that may be covered in a written strategy 
are set out below.

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HR Strategies 59
Typical areas that may be covered in a written HR strategy
Basic considerations – business needs in terms of the key elements of the busi-
•
ness strategy; environmental factors and analysis (SWOT/PESTLE) and cultural 
factors – possible helps or hindrances to implementation.
Content – details of the proposed HR strategy.
•
Rationale – the business case for the strategy against the background of business 
•
needs and environmental/cultural factors.
Implementation plan – an action programme, defi nitions of responsibilities 
•
and resource requirements and arrangements for communication, consulta-
tion, involvement and training.
Costs and benefi ts analysis – an assessment of the resource implications of the 
•
plan (costs, people and facilities) and the benefi ts that will accrue, for the organ-
ization as a whole, for line managers and for individual employees. (So far as 
possible these benefi ts should be quantifi ed in terms of added value or return 
on investment.)