The link between people and performance under the EFQM excellence model umbrella

Abstract

Despite the growing attention that human resources have received in literature, the strategic role of the HR function is still being questioned. The main target of this paper is to determine whether firms that follow the strategy, leadership and personnel suggestions proposed by the EFQM Model improve organisational performance, and also clarify if the strategic management of human resources plays a mediating effect between the personnel management and the results of the company. The study was performed on a sample of 200 medium-sized industrial Spanish firms, employing Structural Equations Modelling methodology.

Our findings suggest that, under the EFQM Model, the influence of both leadership and strategy on people allows organisations to improve their performance. Moreover, a strategic approach helps to enhance the contribution of personnel in the results of the company. It has not been found in prior literature any joint framework linking leadership, strategy, personnel, strategic human resource management and performance in QM organisations. This study helps managers to identify what types of strategy and leadership can be most effective in improving the company's results. At the same time, it is a stimulus for personnel directors who defend a strategic approach to the human resources function in their companies.

Keywords:

• EFQM
• SHRM
• performance
• leadership
• strategy
• people