Investors in People, Managerial Capabilities and Performance

Abstract

Investors in People (IiP) UK commissioned the Centre for Business Performance at Cranfield School of Management to investigate the impact of Investors in People on managerial capabilities, managerial performance and business results. In this study, we took three different approaches. Firstly, we conducted in depth case studies in seven different organisations. Through a series of interviews with HR professionals and line managers, we investigated the impact Investors in People had on management capabilities and managerial performance, probing their understanding of how good management delivered business performance. Secondly, we conducted a survey across some 400 small, medium sized and larger companies based in the UK. Senior, middle and junior managers provided data on their understanding of the role of Investors in People, the company’s managerial capabilities, the performance of managers, and the company’s financial and non- financial performance results. Thirdly, we accessed published data from returns to Company’s House (as provided through the FAME database) to test the linkage between perceptions of managerial performance and firm profitability. The companies we visited for our case studies highlighted the differences in managerial capabilities and performance between Investors in People recognised companies, and non- recognised companies. They also illustrated the differences in organisational commitment to people and their development and provided practical examples of tools being successfully used to build management capabil