[Excerpt] Fit is a foundational concept in strategic human resource management (SHRM). In this context, there are two types of ft: vertical ft, which refers to the degree of alignment between a frm’s HR strategy and its business strategy, and horizontal ft, or the extent to which a frm’s bundle of HR activities is aligned or mutually reinforcing. The dual alignment model of SHRM postulates that organizations perform best when both types of ft are in play. This study provides support for the dual alignment model and, thus, for a comprehensive and integrative approach to the design and implementation of HR strategies.
Data for the study derive from Workplace Panel Surveys conducted biennially between 2005 and 2011 by the Korean Labor Institute. The overall sample included 1,416 frms representing 17 different industries. Data analysis involved 3,456 establishment-year observations – 806, 842, 897, and 911 across the four years covered by the study.