Figure 1: Integration (Source: Nguyen, 2012)
Human resources plans are frequently linked both horizontally and vertically to the overall business strategy. Strategic HRM focuses on the development of HR strategies that are integral to the comprehensive company plan (Rahman & Eldridge, 1998).
Figure 1: the integration of strategy (Source: Slide Team, 2021)
The integration of strategic HRM with the organization as a whole is critical. Horizontally and vertically, human resources plans are often related to the overall corporate strategy. Strategic HRM focuses on developing HR strategies that are relevant to the overall corporate plan (Technology & Prematilake, 2018).
Business leaders may get more out of their investments in human resources technology by connecting disparate systems (Mishra, 2018). HR technology leaders will not question the value of integrating distinct talent management systems or tying them to the mothership of a human resource management system (HRMS).
Benefits of HR Integration
· A stronger sense of cohesion exists among the talent elements, which are more closely connected.
· The efficiency of operations has been boosted, as has the automation of talent acquisition processes.
· Improved user experience, a shorter learning curve, and greater adoption throughout the talent lifecycle are all benefits of using this technology.
· Streamlined sharing of talent data, decreased duplication, and more accurate talent data are all benefits of this initiative (currently seen as poor in most organisations).
· Management will benefit from improved data and analytics.
· Better operational performance and a stronger return on investment are expected from the HR department.
(Technology & Prematilake, 2018)
Role of HR in the integration process
Human Resources (HR) has an important role to play in this process, but they also need to undertake some administrative work to ensure that the organization is lean and has a clear chain of command, which is why they are responsible for handling the actual integration of teams.
Strategic Integration
Horizontal HR Integration | Vertical HR Integration |
Horizontal HR integration is possible for a wide range of HR functions. The term "horizontally integrated system" refers to an HR system that has all of its components working in harmony. Horizontal Talent focuses on recruiting for the IT, digital marketing, and creative industries, as well as business and strategy, because that is where our experience lies. It is our sister company, Horizontal Digital, that provides strategic planning and creative execution for clients across all channels (MBASkool.com, 2021). Example: Facebook and Instagram integration | The effectiveness of human resources lies at the heart of vertical integration. Human resource management practice, responsibilities, and contributions are evaluated in terms of how well they match with the strategic management process of the organization and how well they contribute to the vision, mission, and strategic objectives of the organization (MBASkool.com, 2021). Example: McDonald's is an example of vertical integration. The world-famous fast-food business is a master of Vertical Integration implementation. |
In summary, HR integration impacts to increase increases the organization performance, The report discussed about benefits of HR integration, role of HR in the integration process including vertical and horizontal integration.
Reference
MBASkool.com. (2021). No Title.
Mishra, S. (2018). GIS in Indian Retail Industry-A Strategic Tool. 1(1), 50–57.
Nguyen, V., 2012. UNDP. [Online]
Available at: http://www.hdr.undp.org/en/content/assessing-human-development
[Accessed 29 November 2021].
Rahman bin Idris, A., & Eldridge, D. (1998). Reconceptualising human resource planning in response to institutional change.
International Journal of Manpower, 19(5). https://doi.org/10.1108/01437729810222011
Slide Team, 2021. Slied Team. [Online]
Available at: https://www.slideteam.net/hr-integration-strategy-powerpoint-slide-rules.html
[Accessed 29 November 2021].
Technology, I., & Prematilake, K. D. C. K. (2018). Supplier Relationship Management System for Brandix Essentials ( Pvt ) Information Technology.
This improves productivity and enables HR teams to provide more value through more accurate and consistent reporting.
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ReplyDeleteHR is always an integral part of business strategies. Alling them and arrange with improvements through and organized process will effectively pay off for business results.
ReplyDeleteProcess of combining all the systems to do with managing human resources in a business for set final organizational goal.Nice article and good knowledge.
ReplyDeleteHuman Resource Management (HRM) has a strategic and supportive role that is critical to an organisation's success. Several measures of an organisation's financial and non-financial performance are positively related to its degree of strategic HRM integration (HRMSI). This article helps to better understand strategic HRM and its impact on organisational performance. Thank you for sharing.
ReplyDeleteIntegration across the organization increases accuracy, provides greater automation, eliminates repetition, and ensures that all systems are managed consistently. Thanks for sharing your knowledge.
ReplyDeleteStrategic HR applications had largely been a backwater, as the company have mainly focused on operational issues such as payroll and benefits administration. The HR profession in recent years has been involved in operations have been outsourced or automated, notes. HR for strategic guidance on issues such as how to improve the workforce’s potential. HR has not been considered strategic and has failed to develop the tight relationships with IT have never been improved.
ReplyDeleteStrategic integration is a very important process to improve the performance of the organization as it helps in aligning the business strategies continuously in a rapidly changing business environment. HR has to maintain this properly. you have share here what are the benefit of this. Thanks for sharing.
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