Critically analyse the effects of high performance work practices on employers and employees.

1674 Words Nov 5th, 2013 7 Pages
Critically analyse the effects of high performance work practices on employers and employees. The primary goal of most businesses is to maximize profits for the owners. High performance work practices (HPWPs) are a methodology used by various organizations to maximize workforce potential. HPWP is a combination of various theoretical models working alongside a receptive organizational climate and culture. This analysis will state the merits of HPWPs on employers and scrutinize its shortcoming on employees. The essay has been structured by introducing the concept of HPWPs as defined in available literature along with key findings. Thereafter the relevant theories pertaining to HPWP will be presented. Here the relevancy of the social …show more content…
The labour process theory (LPT) is the embodiment of the capitalistic frame of thought. It views relationships between management and employees not as human actors but rather an interaction between capital and those who serve to protect and increase it (Harley et al. 2010, p. 743). Therefore it can be logically concluded that this theory puts the utmost importance on the interest of the firm’s capital irrespective of any negative effects that may result to employees and relevant parties. Furthermore it can be observed that organizations practicing LPT tend to favour work intensification to a greater degree (Thompson 2010, p. 9). In addition research shows an increasing drive by organizations to maximize the utilization of labour skill and knowledge over the last 25 years (Thompson 2010, p. 9).

According Razi (2012, p. 80) HPWP allows organizations to acquire firm specific human capital which will have a positive influence on the company’s performance. Human capital can be said to be the sum of an employee’s skills, knowledge and experience. In addition to this Bartel cited in Razi (2012, p. 81) puts forward the argument that firm specific human capital results in a greater degree of customer satisfaction. The reasoning for this being that employees with a high degree of knowledge about the organization are better equipped to handle customer requests Razi (2012, p. 81). In addition to this Razi (2012, p. 83)