We use human resources (HR) system strength theory to argue that transformational leadership leads to employee consensus on a unit’s high-performance work system (HPWS), that consensus helps align employee attitudes, and that a compression in attitudes facilitates strategy execution and unit-level outcomes. Empirical tests based on a 4-year linked employee–customer panel data set, involving 255 do-it-yourself stores, support our predictions. Transformational leadership is positively related to HPWS consensus. Consensus is negatively associated with unit-level job satisfaction dispersion, which in turn relates positively to unit-level customer satisfaction. Our study makes important contributions to the strategic HR and HR system strength literatures, highlighting the roles of leadership and employee consensus in strategy execution.
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- employee consensus
- high performance work systems
- human resource system strength
- job satisfaction dispersion
- linked employee–customer panel data
- transformational leadership