Achieving horizontal fit and coherence
Horizontal fit is achieved when the various HR strategies cohere and are
mutually supporting. This can be attained by the process of 'bundling', ie the
use of complementary HR practices, also known as 'configuration'.
Bundling implies the adoption of an holistic approach to the development of
HR strategies and practices. No single aspect of HR strategy should be
considered in isolation. The links between one area and other complementary
areas need to be established so that the ways in which they can provide
mutual support to the achievement of the overall strategy can be ascertained.
The synergy that can result from this process means that the impact of the
whole bundle on organizational effectiveness can be greater than the sum of
its parts. Thus, a job family pay structure can be associated with competence
frameworks and profiles and the definition of career paths as a basis for
identifying and meeting development needs. The message provided by the
pay structure that rewards follow from career progression is much more
powerful if is linked to processes that enable people to develop their capabili-
ties and potential.
How to bundle
The process of bundling is driven by the needs of the business. It involves six
steps:
- An analysis of what the needs of the business are.
- An assessment of how HR strategy can help to meet them.
- The identification of the capabilities and behaviours required of em-
ployees if they are to make a full contribution to the achievement of
strategic goals. - A review of appropriate HR practices, followed by the grouping
together (bundling) of them in ways that are likely to ensure that people
with the required capabilities are attracted to and developed by the
organization and which will encourage appropriate behaviours. - An analysis of how the items in the bundle can be linked together so
that they become mutually reinforcing and therefore coherent. This