groups’ uniqueness and value to the organization. This HRM architecture has been
deWned as ‘the HRM activities (philosophy, policies, practices, and processes)
within diVerent HRM systems that organizations must do today to manage and
prepare themselves to develop the human capital required for achieving a com-
petitive advantage in current or emerging opportunity areas’ (Kepes and Delery in
press). It is, therefore, the organization and management of several diVerent HRM
systems within an organization. Each system, in turn, has diVerent levels of
abstraction (Wright 1998 ); it is comprised of distinct HRM philosophies, policies,
practices, and processes (Becker and Gerhart 1996 ; Schuler 1992 ).
Kepes and Delery (in press) described in detail the components of the HRM
architecture. These include the organizational climate, HRM system philosophies,
HRM system policies, HRM system practices, and HRM system processes.Organ-
izational climate(or the overarching HRM philosophy) reXects all formal and
informal HRM activities and serves as the glue that holds an organization together
(Reichers and Schneider 1990 ; Schneider and Brief 1996 ).HRM system philosophies
refer to the guiding principles that identify and characterize the value and treat-
ment of employees covered within a particular HRM system. They represent the
shared perceptions among certain groups of employees.HRM system policiesserve
as guidelines and benchmarks for speciWc HRM activities (e.g. compensation
practices and processes). Hence, policies reXectwhatan organization is trying to
achieve, nothowit will achieve its goals.HRM system practicesidentify broad HRM
activities and techniques to ensure the implementation of the HRM policies.
Finally, throughHRM system processes, the actual implementation of the HRM
practices takes place. They denote detailed explanations ofhowthe HRM practices
are executed. In the following discussions we use the term HRM activities to refer
to HRM philosophies, policies, practices, and processes.
These complexities within the HRM architecture with its HRM systems and HRM
activities illustrate that there is not only internalWt between HRM policies or
practices within a particular HRM system but also within-HRM system verticalWt
(or internal verticalWt) between each component (or level of abstraction) of the HRM
system and diVerent types of internal horizontalWt. In an attempt to add structure to
this discussion, we describe diVerent types of internalWt in the following section.
- 2 Types of Internal Fit
We distinguish between four diVerent types of internalWt. TheWrst three denoteWt
within a particular HRM system while the last one signiWes internalWt between
diVerent HRM systems within one HRM architecture.Within-HRM system vertical
Wtrefers to the degree ofWt between diVerent HRM activities on diverse levels of
abstraction (e.g.Wt between compensation policies, practices, and processes). This
type ofWt and its consequences are rarely explored in the literature although it is
390 s v e n k e p e s a n d j o h n e. d e l e r y