PAUL SPARROW, Director, Centre for Performance-Led HR, Lancaster University. MARTIN HIRD, Executive Director, Centre for Performance-Led HR, Lancaster

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1 Leading HR PAUL SPARROW, Director, Centre for Performance-Led HR, Lancaster University MARTIN HIRD, Executive Director, Centre for Performance-Led HR, Lancaster University ' ANTHONY HESKETH, Deputy Director, Centre for Performance-Led HR, Lancaster University CARY COOPER, Pro Vice Chancellor (External Relations) and Professor of Organizational Psychology and Health, Lancaster,University macmiilan

2 List of Figures and Tables xii About the Authors ;. xiv Acknowledgments xvi Notes on Contributors.-. xvii 1 Introduction: Performance-Led HR 1 by Paul Sparrow, Anthony Hesketh, Martin Hird, and Cary Cooper 1.1 Introduction» Strategic competence in turbulent times Deciphering the language of strategy ' Getting the measure of business models Engaging the boardroom Thinking more broadly about value Structureof the book 17 2 HR Structures: Are They Working? 23 by Martin Hird, Paul Sparrow, and Craig Marsh 2.1 Introduction : A brief history of ideas HR structures: Finding the devil in the detail The three flaws of implementation : The issues created for HR Conclusions Nestle: Reflections on the HR Structure Debate 46 by Martin Hird and Matt Stripe 3.1 Introduction : Early experiences of HR structure, change British Aerospace Group involvement...*...,... ;..: New experiences at.nestle Confectionery UK The Nestle global HR experience The.HR structure debate.by 2009: Acting locally Reflections on the HR structuring process Conclusion vii

3 viii Contents 4 Using Business Model Change to tie HR into Strategy: Reversing the Arrow..* by Paul Sparrow, Anthony Hesketh, Martin Hird, Craig Marsh, and Shashi Balain 4.1 Introduction : Incremental changes in business model change Externally driven business model change: The changing Rules of the game Internally driven business model change - Changing the rules of the game Continuous business model change - persistent fluidity Managing strategic reciprocity Deconstructing the HR transformation Key HR activities and capabilities 88 5 NG Bailey: Constructing Business Model Change 90 by Craig Marsh and Helen Sweeney ^ 5.1 Introduction The construction industry: Changing traditions NG Bailey's historical strategy and culture Transformation of the Industry, and NG Bailey's strategy: "For life in buildings" '...' : NG Bailey's business model The change process in-ng Bailey HR added value to business model change: "Value from values" HR department restructuring Implementing change: The HR element Engagement and climate change. : Summary: HR contribution to business model change.' Using Relationships Between Leaders to Leverage More Value from People: Building a Golden Triangle 103 by Anthony Hesketh and Martin Hird 6.1 Introduction Who leads people strategy? : Human remains...;' Introducing executive strategic agency vr : Introducing the Golden Triangle'..., Operationalizing the Golden?Triangle \ Evidence for the existence of golden triangles Golden Triangle influencers,......: Conclusion 120

4 ix 7 BAE: Using Senior Management Assessment as Part of. a Talent Strategy, 122 by Martin Hird, John Whelan, and Sherief Hammady ;' 7.1 Introduction 122 7i2 Background'to the BAE SYSTEMS talent process The client perspective,., The consultant perspective...,' Conclusions Integrated Organization Design: The New Strategic Priority for HR Directors 136 by Craig Marsh, Paul Sparrow, arid Martin Hird 8.1 Introduction...' Getting into the right frame of mind Where have we come from? The ODS tradition...' Understanding ODS capability 144 8:5 Bringing the different ODS perspectives together Key messages from the ODS literature Three levels of design capability ' HR's role in linking ODS to business model change Conclusions ' Understanding the Value of Engagement: Building Belief in Performance 162 by Shashi Balain and Paul Sparrow 9.1 Introduction: Why is employee engagement seen as important by organizations? Engagement in the practitioner perspective What is engagement? The academic perspective, i.-...:, Can we model engagement?...%-...: The consequences of engagement: Intermediate performance effects : Understanding organizational performance recipes Conclusion...; Cooperative Financial Services: Linking Ethics, Engagement, and Employer Branding to Business Model Change 189 by Craig-Marsh and Rob Woolley 10.1 Introduction CFS: Background Business model change at CFS Ethics, engagement, and branding at CFS , Making CFS receptive to change 197

5 10.6 Signaling the capability transformation needed Embedding cultural change through leadership behavior and employer branding Linking leadership and employer branding with business model change ' Changes to the HR structure at CFS The payoff: CFS performance in Key messages for HR directors Conclusion: Getting engagement right McDonald's UK: From Corporate Reputation to Trust-Based HR 209 by Paul Sparrow, Shashi Balain, and David Fairhurst 11.1 Introduction: Strategic context for McDonald's UK Initial resolve and purpose: Tackling employer reputation , Fundamental principles behind the HR trust strategy What did McDonaldls do? Reflections on the journey toward trust-based HR Conclusion Vodafone: Creating an HR Architecture for Sustainable Engagement by Paul Sparrow, Shashi Balain, and Paul Chesworth 12.1 Introduction: The business journey The one Vodafone transformation Leading the original UK engagement journey Vodafone's thought process and general approach to engagement Six employee touchpoints Business partnering: A necessary condition Initiating the Global Vodafone People Strategy: A common employee engagement.strategy across one Vodafone Developing intelligent global targets Globalization and organizational restructuring at Vodafone: A tough test for engagement thinking The employee engagement strategy at the global technology function Communication, trust, and identification Conclusions The Future Scenario for Leading HR 253 by Anthony Hesketh, Paul Sparrow, and Martin Hird 13.1 Introduction The death of HR? 255

6 xi 13.3 Whither, labor markets? Whither trust and its impact on labor market behavior? Whither the economics of HR service delivery? Whither HR functional reputation? Conclusions 272 Index 279