Human Resource Management – Strategic fit

The HR strategy should be aligned to the business strategy (vertical fit). HR strategy should be an integral part of the business strategy, they both should move parallel to each other and in the same direction, contributing to the business planning process as it happens. Vertical integration is necessary to provide congruence between business and human resource strategy so that the latter supports the accomplishment of the former and, indeed, helps to define it to its people, developing a sense of confidence and commitment.

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Horizontal integration with other aspects of the HR strategy is required so that its different elements fit together in the process. The aim is to achieve a coherent approach to managing people in which the various practices are mutually supportive to each other.

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