Linking individual performance to business strategy: the people process model

During the last five years, a team of researchers has worked with the senior human resource (HR) teams of seven large companies with Great Britain operations. A key challenge facing organizations is how they continue to deliver sustained competitive advantage in the short-term while also preparing for longer-term success. It is widely acknowledged that the sources of sustained competitive advantage lie not only in access to finance or capital, but within the organization, in people and processes capable of delivering business strategies such as customer satisfaction or rapid innovation. This article builds on previous models of strategic HR processes and describes what role these processes play in linking business strategy and individual performance. The majority of models of the strategic human resource process are normative, in the sense that they map how human resource management should work and provide guidelines on best practice. The methodology and initial theory behind the mapping was guided by a number of implicit assumptions.