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Does Investors in People affect organisational performance: a relevant question?

Abstract

Introduction: Does Investors in People affect organisational performance: a relevant question?

Investors in People  was introduced by the UK Government in 1991 as a reaction to the UK’s poor industrial performance, in comparison with other developed countries at that time (Smith et al., 2014). The aim of Investors in People was to help UK organisations improve the way they manage, develop and inspire their workforce, on the premise that a focus on skills training was crucial in achieving and sustaining the competitive advantage of organisations, their sectors and the overall country. Investors in People is a quality standard by which organisations measure themselves in relation to their human resources (HR) practices (IiP, 2015). To support the quality standard, Investors in People offers principles of best practice in people management and techniques that organisations can apply to improve their performance in these areas (IiP, 2015). According to the chain of impact described by Bourne et al. (2008), organisations that adopt Investors in People will eventually achieve better financial performance (Figure 1).

A chain of impact is set in motion by organisations that adapt and improve their HR policies based on Investors in People standards (Bourne et al., 2008). Improved HR practices create a more positive organisational social climate consisting of higher levels of trust, cooperation and people engagement. Improved HR practices can also increase the skills…

Read this full Emerald Insight paper by dr. André de Waal in PDF.

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