Linking individual performance to business strategy: The people process model

Gratton, Lynda; Hailey, Veronica Hope; Stiles, Philip; Truss, Catherine

doi:10.1002/(sici)1099-050x(199921)38:1<17::aid-hrm3>3.0.co;2-a

Cited by 83 publications

(76 citation statements)

References 19 publications

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“…Whereas historically human resource management research developed out of a concern with functional personnel issues such as the development of valid selection tests and the design of compensation and benefits systems (Wright & Boswell, 2002), in recent years the issue of how employees are aligned with organizational needs has become an important focus of HRM research (cf Boswell, in press;Boudreau & Ramstad, 2003;Gratton et al 1999;Truss, 2001). In part, this focus in HRM research has involved a shift in the outcomes of interest from individual level impacts to outcomes at the level of the organization (Becker & Gerhart, 1996;Delery & Shaw, 2001).…”

Section: Employee-organization Alignment In the Hrm Literaturementioning

confidence: 99%

“…It is ultimately the actions put forth by the actual human resources (i.e., the employees) that produce desired outcomes (Boudreau & Ramstad, 2003;Wright & Snell, 1991). That is, realization of an organization's strategic objectives is through individuals and their behavior (Boswell, in press;Gratton, et al, 1999;Jackson, Schuler, & Rivero, 1989). We conceptualize aligned actions as those actions consistent with an organization's strategic goals.…”

Section: The Concept Of Action Alignmentmentioning

confidence: 99%

“…In this paper, we build on calls for a behavioral focus in strategic HRM research (Gratton Hope-Hailey, Stiles, & Truss, 1999;Jackson, Schuler, & Rivero, 1989;Wright & Snell, 1998) by examining the problem of how to link individual employee behaviors to the overall strategic goals of the organization. We start with the problem that some of the most valuable employee behaviors are those that are discretionary and difficult to specify in advance.…”

Section: Introductionmentioning

confidence: 99%

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The problem of action and interest alignment: Beyond job requirements and incentive compensation

Colvin

Boswell

2007

Human Resource Management Review

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We introduce two concepts, action alignment and interest alignment, that we propose to help explain the linkages between employee behaviors and organizational strategy. We first examine the problem of action alignment, developing employee ability to identify and engage in behaviors that most effectively lead to the realization of the goals of organizational strategy. In particular, our discussion of action alignment focuses on the issues of employee line of sight to organizational strategy and the development of shared mindsets within the organization. We argue that aligned actions involving employee behaviors that are discretionary and difficult to specify in advance are especially important because they hold the potential for sustainable competitive advantage leading to organizational value creation. Then we turn the problem of interest alignment, how to motivate employees to engage in such discretionary/unspecificable aligned actions. We argue for moving beyond the common emphasis on incentive compensative in achieving interest alignment and explore the role of distributive issues in compensation and the role of intrinsic factors deriving from the inherent value and meaningfulness of work for employees. THE PROBLEM OF ACTION AND INTEREST ALIGNMENT: BEYOND JOB REQUIREMENTS AND INCENTIVE COMPENSATION AbstractWe introduce two concepts, action alignment and interest alignment, that we propose to help explain the linkages between employee behaviors and organizational strategy. We first examine the problem of action alignment, developing employee ability to identify and engage in behaviors that most effectively lead to the realization of the goals of organizational strategy. In particular, our discussion of action alignment focuses on the issues of employee line of sight to organizational strategy and the development of shared mindsets within the organization. We argue that aligned actions involving employee behaviors that are discretionary and difficult to specify in advance are especially important because they hold the potential for sustainable competitive advantage leading to organizational value creation. Then we turn the problem of interest alignment, how to motivate employees to engage in such discretionary/unspecificable aligned actions . We argue for moving beyond the common emphasis on incentive compensative in achieving interest alignment and explore the role of distributive issues in compensation and the role of intrinsic factors deriving from the inherent value and meaningfulness of work for employees.2

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Section: Employee-organization Alignment In the Hrm Literaturementioning

confidence: 99%

Section: The Concept Of Action Alignmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The problem of action and interest alignment: Beyond job requirements and incentive compensation

Colvin

Boswell

2007

Human Resource Management Review

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“…Bowen and Ostroff (2004) introduced the concept of 'strength' of the HR system to point out that the perceived distinctiveness of HR policies and practices derives as a linking mechanism that mediates the capability effects. Correspondingly, Gratton et al (1999) distinguished the transformational and performance-related cluster of HR systems which both serve to link any strategic risk or resource gap to HR stock development in either a long-or short-term cycle of bundling HR systems. The proposed three-dimensional model of HR strategy supports a criteria-based assessment by adding the action/inaction dimension in terms of the degree to which a HR strategy is enacted or put into practice (Gratton and Truss 2003).…”

Section: Contextual Analysis: Archetypes Of Accounting Changementioning

confidence: 91%

“…Data analysis used the above-mentioned patterns of 'corporate' accounting change as the ordering variable to further describe the evidence of non-equivalence; in particular, to distinguish the outcome state of HRD systems as the criterion variable for the supplementary analysis of HR strategy formation. Moreover, further definitions of first-order categories of HRD were oriented by a criteria-based methodology using a set of concepts and measures which derived from research on strategic and public HRM (see Table 6 in Appendix; Gratton et al 1999;Truss 2008Truss , 2009a. This kind of analysis is valued because it provides a useful method to evaluate the (strategic) HR systems according to comparative analysis across the cases and temporal sequences.…”

Section: Contextual Analysis: Patterns Of 'Corporate' Accrual-based Amentioning

confidence: 99%

HR development in local government: how and why does HR strategy matter in organizational change and development?

Bruns

2014

Bus Res

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Human resource (HR) management has been proposed as being one of the core drivers of the modernization of the public sector, in particular with reference to the changing nature of people management and ‘HR-public service partnerships’ as an antecedent capacity of modernizing public service organizations. Notwithstanding the ongoing interest in the transformation of HR systems, this study explores how and why such relationships between HR management (HRM) and organizational change emerge. Considering a resource and capability-based approach, the analysis reveals strategic HRM practices as a useful concept to distinguish HR activities and the processes that are occurring when a HR strategy is performed. Moreover, using a multiple case study design, the study exhibits the antecedents and effects of HR strategy formation during accounting change in six German local governments. The results provide evidence that forces of either strategic or administrative patterns of alignment refer to different layers and the sequencing of HRM activities within a process of HR system change, thereby revealing the possibility of contradictory effects induced by HR change agency on either the ‘HR’ or the ‘public service’ side of the strategic coin.

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Structuring Business Objectives: A Business Process Modeling Perspective

Neiger

Чурилов

2003

Lecture Notes in Computer Science

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Linking individual performance to business strategy: The people process model

Cited by 83 publications

References 19 publications

The problem of action and interest alignment: Beyond job requirements and incentive compensation

The problem of action and interest alignment: Beyond job requirements and incentive compensation

HR development in local government: how and why does HR strategy matter in organizational change and development?

Structuring Business Objectives: A Business Process Modeling Perspective

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