Human resources and manufacturing: where and when should they be aligned?

Abstract

Purpose The purpose of this paper is to analyse the effect that a horizontal fit between two functions (human resources (HR) and manufacturing) has on firm performance, distinguishing between fit in objectives and fit in achievements. Design/methodology/approach This study uses 144 double surveys, addressed to two different respondents per company. Structural equation modelling was used to investigate the mediating role of fit in achievements in the relationship between fit in objectives and performance. Findings The study provides evidence of the particular way in which the two components of horizontal fit that the authors distinguish (fit in objectives and fit in achievements) the impact on performance: fit in objectives has an indirect effect on performance, which is fully mediated by the fit in achievements. The results also show that environmental dynamism has a significant impact on both the advantages and drawbacks of fit. Practical implications By highlighting the importance of both levels of horizontal fit and distinguishing between them, this paper calls upon HR and manufacturing managers to show a greater understanding of the key dimensions common to both areas. Originality/value This study analyses horizontal fit by developing a framework of priorities in HR management (HRM) similar to that traditionally used in production management. In particular, it adapts the framework of production competence to the area of HRM to study the fit between the two functional strategies. This study also supports the value chain model proposed by Porter (1985).