1 Introduction High-performance work system (HPWS) can be defined as a specific combination of HR practices, work structures, and processes that maximizes employee knowledge, skills, commitment, and flexibility (Bohlander & Snell, 2004, p. 690, Marchington and Wilkinson, 2008, P92). A basic aim of HPWS is leveraging human resource system to improve employees’ overall contribution and performance by enhancing their discretion, competency and commitment. Among enormous researches of HPWS, researchers have empirically established a positive relationship between HPWS and a variety of organizational performance such as turnover (Guthrie, 2001; Huselid, 1995), labor productivity (Huselid, 1995), firm productivity (Guthrie, 2001), and …show more content…
However, as for the effects on employees, opinions differ. Possible involved issues may include the benefits of employment security, internal labor market, extensive training and development, information and higher levels of pay, as well as drawbacks of increased work pressure and work-life imbalance. (Marchington and Wilkinson, 2008, P92). More explicitly, Batt (2002) classified two paths that explained how bundles of HR practices directly and indirectly enhance employee performance within the organization. The direct path is important because it enable workers to solve work problems better by enriching their skills and knowledge. The indirect path plays a role in encouraging people to take the responsibility by enhancing their motivation and satisfaction. 2 The implications of HPWS on efficiency of employee control The ultimate purpose of organizations to have more efficient employee control is to improve organizational performance. Considering the fact that human capital is one of the most important
Furthermore, it is stated that HRM practices can also be categorized on the basis of their emphasis into three sets viz., quality focus, cost reduction, and differential innovation (Guest, 1997). The importance of effective HR practices can be judged by the fact that with the effective execution of HR practices, the employees tend to be more committed to their work and they go the extra mile to add to organization’s benefit.
Cascio, W. (2013). Managing Human Resources: productivity, quality of work life, profits (ninth edition). New York, NY: McGraw – Hill Companies, Inc.
Human Resources often begins as very tactical policies, records, compliance, discipline, compensation, benefits, job descriptions, hiring, performance management (). Taken to the next level, HR becomes strategic, connecting employees to the business mission, values, and vision, in order to drive business results (). Employee goals and metrics align to the business strategy and rewards tie into results. Additionally, careful consideration is given to developing talent pipelines, employee succession plans, and career planning in order to respond flexibly to the inevitable work flow and staffing changes that all businesses experience ().
In addition to this, whilst there is a growing body of evidence supporting an association between HPWP and organization performance, there is not much on why the association exists with most research to date only examining the direct relationship between a set of management practices and performance outcomes (Guest, 1997). The mechanical links between these practices and outcomes are currently a “black box” with empirical and theoretical gaps (Luthans & Sommer, 2005).
In every business or corporations, the human resource department has a minimum 3 step course requirement to fulfil; planning of staffing needs, recruitment and evaluation, and balance in training, performance and demand (Lorrette, 2015). The goal of the HR management is to achieve the highest level of job satisfaction and dedication among employees which helps retain the employees who can perform the job (Louis E. Boone, 2013). Thanks to technology
The strategic use of human resources is essential for all organisations that have objectives involving growth and stability. Therefore, it is essential for companies to closely examine their practices regarding their human capital to ensure a successful working environment. A selection of the major strategies and topics involving human capital are illustrated in the following report. Crackberry Communications should use this information to analyse potential risks and opportunities their human resource managers face.
Gratterpalm’s new human resources (HR) activities helped drive business growth by the strategic use of surveys as initial employee engagement to gain insight coupled with a strong communications plan. High performing organizations have a deeper understanding as to how employee engagement can successfully drive business growth.1 < Lockwood, N. (2007) P.2, Abstract, all lines>The HR activities strategically integrated both employees and management teams, and incorporated them early on in the HR structuring process. The High Performance Work System (HPWS) that was put into place included valuable training opportunities, structured performance management and appraisals, compensation or
In this section of the document the objective is to examine the area of High Performance working.
HPO companies ensure that they have a diverse workplace and recruit high qualify individuals who are self-motivated to do the work. Employee quality is not only having people on the bus but rather have the right people on the bus. There 're four characteristics to this to this factor.
Critically discuss the possible positive and negative outcomes from a high performance work system, and their HRM implications.
The current widespread interest change in workplace and emergence of high-performance work systems all rooted in the arising pressure from unprecedented changes in external environment as well as international competitiveness across the globe (Pradip Kumar, 2000). Over time, as the market of Human Resource management system becomes better developed, its strategic value will diminish, and similar to product and services quality in the market, High Performance Work System (HPWS) will become new valuable competitive advantage as well as creating cost of entry within the organization. According to Nadler (1989), High Performance Work System (HPWS) is define as a configuration of human resource practices and organizational structure processes that bring together employee’s knowledge, skill, commitment, information and flexibility to produce maximum working performance in terms of meeting environmental demands and opportunities. This process usually revolves around few main principles which involve more job complexity, multi-tasking, decision-making power, egalitarianism (figure 1.0) as well as greater level of communication and incentives rewards.
High performance work systems denotes a human resource system that uses a bundle of practices integrated to develop a stronger employer-employee relationship by encouraging and motivating the employees to work in the direction of the goals of the organization. These bundle of practices are activities associated with comprehensive recruitment and selection, employee involvement, performance management, skill development and trainings and incentive based compensation. Organizational behavior specialists believe that companies adopting this approach will have a sustainable competitive advantage .
What does High Performance Work Systems (HPWS) mean and does it have an impact on the performance of an organisation? What are the components of a HPWS and are there any benefits?
Today Human Resources (HR) is at the centre of business performance. HR professionals have an important role to play in driving decisions that enable their organisations to thrive in both the short and the longer term. Where in the past the function delivered the fundamentals that underpinned the employee lifecycle (such as recruitment, induction and salary administration) supporting organisation performance is now the theme running through HR’s work.
Becker., E. B., Huselid., A. M., Ulrich. D. (2002). Six Key Principles for Measuring Human Capital Performance in Your Organisation. State University of New York at Buffalo