Establishing the links between people capability and organisational outcomes: four Public Service case studies

Abstract

The current research examines evidence of the links between organisational outcomes and human resource (HR) strategies, policies and practices in the New Zealand Public Service. A topical issue because of the Managing for Outcomes initiative (2001) which places emphasise on ensuring the necessary people capability within the Public Sector to deliver on agreed outcomes. As a result of case studies undertaken on four Public Service organisations using qualitative research methods (structured interviews and documentary evidence), the study confirmed evidence of links between the outcomes identified by the four departments and their human resource strategies, policies and practices. This finding was supported by a review of the literature which established theoretical and empirical evidence of a link between organisational outcomes and HRM practices. The current research found a strong similarity in the high-level HR initiatives undertaken by all four cases over recent years; consistent with common information and guidance provided to all four organisations. An explanation for this is the presence of institutional isomorphism in the New Zealand Pubic Service, alongside the regulatory environment which operates under the good employer requirements of the State Sector Act 1988. It is concluded that best practice approaches to HRM in the New Zealand Public Service have played, and will continue to play, a role in the development of people capability initiatives within Public Service organisations. This reinforces recommendations from the Review of the Centre Report and initiatives such as the HR Framework which focus on a whole of government approach to enhancing people capability within the Public Sector. This research also considered the impact of change processes on HR policies and practices and highlighted the time-lag associated with being able to monitor and evaluate observable changes.