Linking Individual Performance to Business Strategy: The People Process Model

Running head: BUSINESS STRATEGY
Business Strategy
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Article 1- Gratton, L., Hope‐Hailey, V., Stiles, P. and Truss, C., 1999. Linking individual
performance to business strategy: The people process model. Human Resource Management:
Published in Cooperation with the School of Business Administration, The University of
Michigan and in alliance with the Society of Human Resources Management, 38(1), pp.17-
31.
The performance of the different staff members presents in the organizations play a
significant role in the overall success of the organizations in a positive manner. The
measurement and management of performance of employees are essential which gives the
ability to gauge the efficiency of workers which improves the productivity of the companies.
The article discusses the linkage between individual performance with the business
strategy with implementing people process model. The key challenge which is facing by
companies is that they are not able to deliver sustained competitive advantage in short-term
while they are preparing themselves for long-term success. As the authors' comments, the
different models of strategic human resource management are normative and, in such a
scenario, the human resource management should work along with providing guidelines on
best practices.
Moreover, with the qualitative data collection method, the interviews and employees
survey are considered which increases the depth and scope to understand the importance of
people in organisational success. The people process model helps in workforce development
through career planning and focusing on the present as well as future. The performance
appraisals are the significant source of success as it motivates the employees and it enhances
the business strategy to a large extent as well.
Apart from the article, Adi (2015), comments that the performance of employees
plays a crucial role in accurately achieving positive business performance. The embedding of

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people processes as well as creating proper linkage to business strategy is the enormous
importance to the Human Resource practitioner. However, Jarzabkowski and Kaplan (2015),
hypothesises that there are differences across the processes as there are different companies
which do not have proper implementation of training and development programs and it
affects the morale of employees which leads to the negative impact on the performance of the
organization as well.
The knowledge gap in the article is relating to the complex processes that negatively
affects the overall management processes. With the people process model, short term aspects
are improved as it does not focus on long term approaches. The key findings of the article
include the major weakness of the model as it focuses on current capabilities and present
development of organisations.
Therefore, it concludes that to the link between people performance and the business
strategy, proper business targets are set along with cascading the goals which play a
significant role in the success of organizations.
Article 2- Grundy, T., 2006. Rethinking and reinventing Michael Porter's five forces model.
Strategic Change, 15(5), pp.213-229.
Porter’s Five Forces is the framework which analyse the competitive rivals, potential
market entrants, customers, suppliers along with the different substitute products which
influence the profitability of the company.
As per the article, the authors state that the five forces model is the influential model and it
acts as the heart of the management agenda. The bargaining power of suppliers along with
buyers affects the ability of companies to increase prices along with managing the costs.
Furthermore, the respective model encourages the different managers to understand the