influence corporate and business unit strategies. It is also necessary to note
that in establishing these links, account must be taken of the fact that
strategies for change have also to be integrated with changes in the external
and internal environments. Fit may exist at a point in time but circumstances
will change and fit no longer exists. An excessive pursuit of 'fit' with the status
quo will inhibit the flexibility of approach that is essential in turbulent
conditions. This is the 'temporal' factor in achieving fit identified by Gratton et
al (1999). An additional factor that will make the achievement of good vertical
fit difficult is that the business strategy may not be clearly defined - it could be
in an emergent or evolutionary state. This would mean that there could be
nothing with which to fit the HR strategy.
Making the link
However, an attempt can be made to understand the direction in which the
organization is going, even if this is not expressed in a formal strategic plan.
All businesses have strategies in the form of intentions although these may be
ill formed and subject to change. The ideal of achieving a link in rigorous
terms may be difficult to attain. Cooke and Armstrong (1990) suggested that
one approach might be to find a means of quantifying the additional resources
required by HR overall and at the level of each element of HR strategy, and
measuring and comparing the marginal return on investing in each element.
But it is highly unlikely that this approach would be practicable.
The link must therefore be judgmental, but it could still be fairly rigorous.
Conceptually, the approach would be to develop a matrix as illustrated in
Table 2.3, which for each of the key elements of business strategy identifies
the associated key elements of HR strategy.