5CO01 AC 3.2 Answer

5CO01 AC 3.2 Analyse how people practice supports organisational strategy through vertical and horizontal integration. *Approx. 350 words

People Practice leverages both horizontal and vertical integration to make sure that its personnel management programs support development and competitiveness while aligning with the organisation’s vision and goal. For example, by streamlining processes, prioritising operational efficiency, and hiring qualified staff, our organisation’s people practices aim to be in line with its cost leadership strategy.

Vertical Integration

When a business is vertically integrated, its people practise strategy and overall corporate vision align (Sony and Mekoth, 2022). People professionals should use people practice activities, such as staff development, performance reviews, and talent recruitment, to ensure that a company has forward-thinking and inventive employees when it wants to grow by utilising innovation (Masuda et al., 2020). Since it helps the company achieve its goal of being the leader in its industry in technological developments, Google’s organisational strategy, which allows employees to dedicate 20% of their working hours to passion undertakings, is a practical instance of vertical integration (Sekar, 2024). People practices are also crucial in performance evaluation as they establish a link between the corporate and individual goals. In this case, performance management tools such as key performance indicators (KPIs) and balanced scorecards are crucial for monitoring progress and maintaining goal alignment.

Horizontal Integration

Horizontal integration involves integrating various people practices, such as recruitment, onboarding, training and performance evaluation, to develop a cohesive personnel strategy. By integrating people functions, people practitioners offer a framework that enhances the employee experience while ensuring long-term organisational development. An organisation must ensure that its hiring procedures favour candidates who thrive in competitive settings, that its training initiatives concentrate on building high-impact skills, and that its incentive schemes acknowledge outstanding work if it hopes to establish a high-performance culture (Masuda et al., 2020). A competency framework that coordinates hiring, performance evaluations, and employee training is among the most important examples of horizontal integration. Once new personnel have been evaluated for credentials that match the organisation’s strategic goals, training programs can be developed to help them further enhance their abilities. Performance reviews may then be used to evaluate and reward them (CIPD, 2016). All facets of the organisation’s people strategy are supported by consistent people practices, which provide a sense of oneness.

Refences

CIPD (2016) Could do better? Assessing what works in performance management. https://www.cipd.org/globalassets/media/knowledge/knowledge-hub/reports/could-do-better_2016-assessing-what-works-in-performance-management_tcm18-16874.pdf.

Masuda, T. et al. (2020) ‘Culture and Business: How Can Cultural Psychologists Contribute to Research on Behaviors in the Marketplace and Workplace?,’ Frontiers in Psychology, 11.

Sekar, N. (2024) Google’s “20% Time” Policy Case Study. https://medium.com/@nareshnavinash/googles-20-time-policy-60d5706084be.

Sony, M. and Mekoth, N. (2022) ‘Employee adaptability skills for Industry 4.0 success: a road map,’ Production & Manufacturing Research, 10(1), pp. 24–41.

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