THE UNIVERSITY OF DODOMA

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF BUSINESS ADMINISTRATION ANDMANAGEMENT

COURSE NAME: STRATEGIC HUMAN RESOURCE MANAGEMENT

COURSE CODE: HR 313

COURSE INSTRUCTOR: Dr. RICHARD JAFFU

NATURE OF THE WORK: INDIVIDUAL WORK

S\N NAME REG. NUMBER SIGN

1 MODESTUS R WILLIAM T21-03-12064

QUESTION

Strategic human resource management is guided by the principle of vertical integration. With the
guide of human resource management functions, discuss this statement.
Introduction

Strategic Human Resources Management is referred to as the process by which the Human
resources department interrelates people management and the development practices to long –
term business strategic goals and outcomes and it focuses on long term resourcing issues and
other HR strategies such as reward and performance and how they are integrated with the overall
business strategy. Strategic Human Resources Management helps in formulating strategies that
will ensure achievement of the business goals.

Vertical integration in strategic human resource management refers to the alignment and
integration of HR functions with the overall strategic goals and objectives of the organization. It
involves ensuring that HR strategies, policies, and practices are directly linked to and support the
broader strategic direction of the company.

The following are the human resources functions showing on how Strategic human resource
management is guided by the principle of vertical integration.

 Performance Management

In ensuring that Human resources strategies are well linked with business strategies, HR
implements performance management systems that align employee performance goals with
strategic objectives, ensuring that individual and team efforts contribute to organizational
success. This is being achieved by ensuring continuous monitoring and feedback also identifying
skill gaps and development needs and performance improvements initiatives where these are
there to ensure that human resources are up to date to comply with the business needs at time.

Example: If an organization's strategic goal is to increase market share, HR may set performance
metrics related to sales targets, customer satisfaction, or market penetration for employees in
sales and marketing roles.

 Training and Development programs

In human resources management this is referred to as the process of imparting knowledge skills
and abilities to an employee to help him in carrying out his current and future duties and
responsibilities.

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In ensuring effective vertical integration HR designs training programs that develop employees'
skills and capabilities that will help them to meet overarching strategic plans of the business
programs such as leadership development, technical skills enhancement, or customer service
excellence are very crucial to help employees, aligning with the evolving needs of the
organization and its strategic initiatives.

Example: In a technology-driven industry, HR may prioritize training programs on new software

or digital tools to support the company's innovation and competitiveness strategy.

 Compensation and Benefits

These are total monetary and non-monetary packages that an employee receives in exchanges
with labor granted to the organization. This is the very crucial to the organizational performance
as it helps to attract and retain potential workforce.

In guiding strategic human resources management within the framework of vertical integration
Compensation and benefits packages are structured to motivate employees to contribute towards
achieving strategic objectives. This may include performance-based incentives, recognition
programs, and benefits that support employee retention and engagement aligned with strategic
priorities.

Example: In a company focusing on sustainability, HR may introduce eco-friendly initiatives in

employee benefits, such as subsidies for public transport, incentives for using reusable products,
or wellness programs promoting a healthy lifestyle.

 Employee Relations and Engagement

This also plays a vital role in the development and performance of the organization as it keeps
the employees happier and with positive relationship between themselves and their employers

Within the framework of vertical integration HR fosters a positive work environment and
employee engagement strategies that reinforce organizational values and contribute to achieving
strategic goals, such as promoting teamwork, collaboration, and a culture of continuous
improvement.

Example: If an organization aims to become an industry leader in innovation, HR may

implement initiatives that encourage knowledge sharing, cross-functional collaboration, and

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creative thinking among employees that will fosters unit and cooperation toward achieving the
goals of the business.

 Recruitment and Selection

The HR function aligns recruitment and selection processes with the organization's strategic
goals by hiring employees who possess the skills, knowledge, and competencies required to
fulfill strategic objectives. And also Human resources management focuses on acquiring talents
specifically suited for roles that contribute directly to vertical integration efforts’ and this
includes recruiting individual with expertise in areas such as strategic partnership, supply chain
management and market expansion strategies, thus all of these will ensure best link between HR
strategies and the overall business goals

Example: If an organization aims to expand into new markets, HR may focus on recruiting
candidates with international business experience or language skills to support the company's
global expansion strategy.

By integrating these HR functions such as training and development, compensation and benefits,
recruitment and selection employee’s relations and engagement and performance management
strategically, organizations can effectively utilizes their human capital to drive innovation,
productivity, and organizational performance aligned with strategic objectives. This vertical
integration ensures that HR practices are not isolated but instead interconnected and contributing
directly to the organization's success.

REFERENCES

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J. Martocchio (2018) “Strategic compensation: A Human Resources Approach”

Michael Armstrong (Last edition 2021) “Armstrong’s Handbook of Human Resources

Management Practices”

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