Conclusions
Using survey data and published financial data, we examined the association between
strategic HR alignment mechanisms and firm productivity. The results show that vertical
fit efforts during the strategic planning process are related to better productivity,
regardless the vertical fit mode. The findings indicate that the effectiveness of bottom-up
and top-down alignment is hampered by respectively low strategic flexibility and HR
flexibility. In such circumstances, the fit modes seem to be valuable alternatives for each
other given that the firm succeeds in developing strong human capital. This would
successfully increase added value per employee, but this surplus serves at compensating
the additional firms’ personnel costs.