Strategic alignment between HR and organizational strategy, both horizontally and vertically, is achieved by supporting practices. Notions of strategic alignment have their roots in contingency theories of strategic HRM. An HRM contingency framework is one in which HRM policies and strategies are related to the underlying organizational strategy and in which alignment of HRM practices are contingent upon both the internal and external environments in which the organization operates. This theory emphasizes vertical alignment, the integration of HR strategies with organizational strategy.
Earlier in the course, you read Porter’s work on strategy, which suggests that there are three potential ways to achieve a competitive advantage—focus, quality, and cost leadership. Strategic HRM scholars have argued that there are distinct HR practices aligned with these organizational strategies for increased competitive advantage: for example, performance systems that emphasize longer-term achievements or career paths that reinforce learning and skill development. In contrast, a cost-leadership strategy can be supported by reduced levels of employee training and development. Turning to horizontal integration of HR strategies, also termed “bundling,” is equally important to organizational success. This requires careful consideration of how selection, developmental, and compensation practices fit to form a system that is equally aligned with vertically integrated practices.
In addition, organizations want to adopt practical HR practices that have the potential to attract, motivate, and retain key talent and create a competitive advantage while aligning with their strategic goals. For this Discussion, you will use the following scenarios to craft your response.
Write a cohesive and scholarly response based on your readings and research this week that addresses the following:
All work must be original and in APA format. Use at least 3 of the attached resources as references. Please include and introduction and conclusion.
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