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Ebook Business psychology in practice: Part 2

(BQ) Part 2 book “Business psychology in practice” has contents: Releasing talent across an organization, unleashing leadership and learning within an international bank, releasing talent through coaching, organizational change, why chief executives hire coaches, and other contents. | PART 4 RELEASING TALENT CHAPTER 19 Introduction SARAH LEWIS . . . for the first time ever it is possible to state with confidence that how organisations manage people has a powerful - perhaps the most powerful - effect on overall performance, including the bottom line. (Chartered Institute of Personnel and Development, 2001) This bold statement from the Chartered Institute of Personnel and Development (CIPD) reflects the culmination of many years of effort to demonstrate the impact on organizations of effective people management. ‘Our people are our greatest asset’ has become a management clichC. Research, however, confirms the suspicion that as a sentiment it is more honoured in the breach than in the observance. For instance, the 1998 Workplace Employment Relations Survey reveals that while twothirds of UK organizations surveyed relied strongly on people for competitive advantage, only one-tenth prioritized people issues over marketing and finance issues (Guest et al., 2000). West and colleagues found that, amongst the manufacturing businesses they researched, 18%of variation in production and 19%of variation in profitability could be attributed to people-management practices, these representing the largest impact of the variables investigated. By contrast, research and development accounted for 8%whereas perennial favourites quality, new technology and competitive strategy only accounted for approximately 1%each (West and Patterson, 1998). Similarly, Caulkin’s examination of 30 organizational performance studies in the UK and US since 1990 notes that the results leave ‘no room to doubt that there is a correlation between people management and business performance, that the relationship is positive, and that it is cumulative’ (Chartered Institute of Personnel and Development, 2001). These findings suggest that good people management policies and procedures are at the heart of profitable businesses. However, policies and practices are necessary but not .