Continued from previous page yet another level of dialogue (beyond this article) in terms of relationship between line and HR staff, and linkages within and between HR units. Contextual Linkage: the relationship between the HR system and the internal and external environment. In this sense, the HR system adapts to the changes in the environment i.e. political, economic, social, technological, environmental and legal as well as to the rules and expectations of the institutional context which affect the organisation. The important relationship between the HR system and other relevant systems in the organisation cannot be overlooked. Relevant systems for instance, might include technological systems, security systems, legal, public relations, research and corporate governance, development systems, among others. This dynamic arrangement and systemic linkage allow the public sector to work in tandem ensuring that work is effectively carried out across departments, divisions and units in a value-added way. More pointedly, the strategy formulation process in public sector organisations, in general, is influenced by a number of external and internal factors that are all interconnected. These factors, including technological, economic, legal, socio-cultural and political environment do have an impact on strategy formulation and implementation in organisations. For example, variations in the economic growth or growth in specific sectors, variations in the demographics of the workforce and even political influences, can affect the strategic direction of an organisation and thus create the need for alignment of human resource management to these changes. With regard to workforce demographics, the projection of demand and supply of manpower at the macro level is critical for ensuring the right HR capabilities and capacity in the public service. Labour supply and demand will also impact educational planning, human resource development, movement in occupational jobs both at the national level and the organisational level. The Labour Market Information System (LMIS), currently being used by a number of countries, can assist in the collection and analysis of labour force data for HR planning and policy formulation. The above types of fit represent the view that a broader set of contextual factors has the ability to affect the effectiveness of HRM, and conversely, they are capable of providing a valued contribution to the HRM Fit approach. In essence, vertical integration is necessary to provide congruence between organisational and human resource strategy. That way, human resources support the accomplishment of the organisation and, indeed, help to define it. Horizontal integration is required so that the different elements of HRM work together to achieve a coherent approach to managing people. End Note One of many practical tools that can be used to ensure the success of the linkages described in this article is that of integrated performance management (IPM). IPM combines national development planning, resilience planning, government’s priority setting, strategic planning and budgeting, reporting, organisational and individual performance measurement and organisational alignment. In an ideal organisation, all of these converge to ensure successful outcomes and contribute to sustainable public sector transformation. From an HR Practitioner’s perspective, the integrated approach will require commitment at all levels starting from the top. Having senior management enthused about HR/strategy alignment to ensure effective performance results makes it seem less of a pie in the sky, or HR-wishful thinking. With senior management on board, this approach would be more readily accepted and better valued by employees. When employees see the connection between what they do daily and what the organisation is aiming to achieve, through its strategies and plans, then, the more effectively and efficiently the organisation will run. Designing HR systems and processes with organisational strategy in mind maximises the return from staff and is able to drive the public sector to greater success. 18
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