The implementation of strategy: behavioural vs budgetary approaches and the effect of participation

Abstract

<p>This study looked at the impact on ROA of aligning budgeting and HRM decisions with strategy. A Lisrel model was tested on 79 large Canadian and U.S. firms. While HR policy alignment was positively associated with ROA, budgetary alignment was only positively associated with ROA inconjunction with process participation.</p>