People Performance Link

The people performance link is a concept developed by Professor John Purcell in 2003 to highlight the connection between human resource management (HRM) practices and organizational performance. It suggests that there is a direct link between the way an organization manages its people and the performance outcomes it achieves.

According to Purcell, the people performance link is based on three key principles:

1. Strategic integration: The alignment of HRM practices with the organization’s overall strategy and goals.
2. High-performance work practices: The use of HRM practices that are designed to improve individual and organizational performance, such as employee involvement, training and development, and performance management.
3. Employee engagement and involvement: The involvement and engagement of employees in decision-making processes and the implementation of HRM practices.

Purcell argues that when these three principles are effectively implemented, they can lead to higher levels of employee commitment, motivation, and productivity, which can ultimately result in improved organizational performance.

The people performance link suggests that HRM practices are not just a cost center but can be a source of competitive advantage for organizations. By investing in their people and implementing effective HRM practices, organizations can achieve better performance outcomes and gain a competitive edge in their industry.

• Why is performance management much broader than a traditional annual review, and why does it link to so many people management practices?
• AMO model shows that individual performance is a function of Ability + Motivation + Opportunity
• So in order to stimulate individual performance, need to focus on:
  1. Recruiting people with the suitable skills and abilities to perform the job
  2. Giving them sufficient motivation to put these skills and abilities into practice
  3. But also provide them with opportunity to do this (autonomy and discretion, not control)

Without all three of these components, individual performance will be constrained.