Designing and aligning an HR system

Abstract

This article reports the results of a study conducted in the wholesale banking arm of a major international financial institution in Ireland. This took a multi‐level perspective in exploring the construction of the HR system at group, divisional and strategic business unit (SBU) levels within the firm. The findings suggest that it is critical to consider the level of analysis in both the construction of theHR system and in its operation at different levels within the multi‐divisional firm. The research found that it is at SBU level that a coherent HR system is most likely to emerge, as at this level appropriate processes can be adopted to implement HR policies, practices and philosophies. However, the negotiations and interpretations of HR practice that dominate traditional divisional/business unit arrangements may be detrimental to theemergence of a coherent HRsystem.

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