The paper explores the various high performance work systems and practices and how they help in the improvement of the organizational performance.
The central argument of the paper is that there are moderating and mediating factors which impact the relationship between high performance work practices (HPWP) and organisational performance. Existing literature and scholarly works indicate that there are various antecedents such as organisational entrepreneurial orientation and organisational learning.
It cannot be said that HPWP always improve organisational performance, as there are moderating and mediating mechanisms between HPWP and organisational performance. HPWPs have a number of definitions. However, the common definition applied in various studies is that HPWPs refer to the managerial practice systems whose aim is to increase the employee empowerment and to enhance the incentives and skills that motivate and enable the employees to take advantage of their greater involvement.
On the other hand, entrepreneurial orientation refers to the organisational mind pattern reflected in terms of the entrepreneurial attitudes as well as the willingness to start new ventures and businesses. Considering that employees in an organisation are a major source of competitive advantage, strategic human resource management (SHRM) has gained heightened importance in the rapidly changing and knowledge-based economies.
As rare, inimitable and valuable assets for the organisation due to the socially complex, firm-specific and path dependent nature of the employees, human resources practices are important for firms as a means of achieving sustainable competitive advantage. High performance work practices (HPWP) is an important concept as it reflects the basic practices and philosophy of SHRM as it shapes the skills, behaviours, and attitudes of the employees by utilising and discovering knowledge, to achieve the organisational performance goals.
The essay thus explores the functioning mechanisms of organisational learning and entrepreneurial orientation in the HPWPs –Organisational performance nexus.
Table of Contents
- Introduction
- High Performance Work Practices (HPWPs): Definitions and Perspectives
- HPWPs and Organisational Performance: Diverse Perspectives
- HPWPs as Tools for Behavior and Attitude Control
Objectives and Key Themes
The main objective of this paper is to critically discuss the statement that High-Performance Work Practices (HPWPs) always improve organizational performance. It aims to explore the moderating and mediating factors influencing the relationship between HPWPs and organizational performance.
- The definition and varying interpretations of HPWPs.
- The relationship between HPWPs and organizational performance.
- The role of organizational learning and entrepreneurial orientation as mediating and moderating factors.
- Different perspectives on the impact of HPWPs on organizational performance (strategic development, internal factors, and sustainable competitive advantage).
- The use of HPWPs as tools for controlling employee behavior and attitudes.
Chapter Summaries
Introduction: The introduction sets the stage by questioning the assertion that High-Performance Work Practices (HPWPs) invariably lead to improved organizational performance. It posits that mediating and moderating factors significantly influence this relationship, citing prior research on organizational entrepreneurial orientation and organizational learning as examples. The introduction also briefly touches upon the varied definitions of HPWPs and the essay's aim to investigate the mechanisms of organizational learning and entrepreneurial orientation within the HPWPs-organizational performance dynamic.
High Performance Work Practices (HPWPs): Definitions and Perspectives: This section delves into the complexities surrounding the definition of HPWPs. It highlights the lack of consensus among scholars, attributing this to differing emphases. Some scholars focus on discretionary employee effort, emphasizing motivation, workplace participation, and skill development, while others concentrate on identifying statistical links between HPWPs and organizational outcomes. The section explores various suggested practices that constitute HPWPs, ranging from 18 to 48 items, depending on the researcher, emphasizing the absence of a universally accepted framework. The core interest of HPWPs is described as focusing on altering employee commitment and attitudes toward organizational success, suggesting that a combined effect of these practices is key to achieving positive outcomes.
HPWPs and Organisational Performance: Diverse Perspectives: This section examines the multifaceted relationship between HPWPs and organizational performance. Three main perspectives are presented: the strategic development perspective, emphasizing the alignment of HPWPs with overall organizational strategy; the internal systems perspective, focusing on the compatibility and coordination of internal HRM practices; and the sustainable competitive advantage perspective, highlighting the importance of employee participation in the success of HPWPs. The section explains how HPWPs, when effectively implemented, lead to increased employee participation and the sustenance of high-quality human capital, building on various cited studies that show the influence of different dimensions (hiring procedures, decentralization, compensation, training, security, information sharing) and the overall impact of the entire bundle of HPWPs.
HPWPs as Tools for Behavior and Attitude Control: This section explores a different perspective on HPWPs, viewing them as instruments for managing employee behavior and attitudes. It emphasizes the creation of a supportive environment and the role of social exchange theory in fostering positive relationships between employees and the organization. Tools such as career planning, skill training, and employee support are highlighted as ways to strengthen the exchange relationship, thereby improving organizational commitment and employee behavior, and ultimately, leading to enhanced organizational performance. The discussion suggests that the success of HPWPs heavily depends on creating the right exchange relationship between the organization and employees, underlining that without this, improvements in organizational performance are less likely.
Keywords
High-Performance Work Practices (HPWPs), organizational performance, organizational learning, entrepreneurial orientation, mediating factors, moderating factors, strategic human resource management (SHRM), employee commitment, discretionary effort, sustainable competitive advantage, social exchange theory.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main objective of this paper?
The main objective is to critically analyze the assertion that High-Performance Work Practices (HPWPs) always lead to improved organizational performance. It explores the mediating and moderating factors influencing the relationship between HPWPs and organizational performance.
What are the key themes explored in this paper?
Key themes include the definition and interpretation of HPWPs, the relationship between HPWPs and organizational performance, the roles of organizational learning and entrepreneurial orientation, diverse perspectives on the impact of HPWPs (strategic development, internal factors, and sustainable competitive advantage), and the use of HPWPs as tools for controlling employee behavior and attitudes.
How are High-Performance Work Practices (HPWPs) defined in this paper?
The paper highlights the lack of a universally accepted definition of HPWPs. It discusses differing scholarly perspectives, some emphasizing discretionary employee effort and motivation, while others focus on statistical correlations between HPWPs and organizational outcomes. The number of suggested HPWPs varies widely across research, ranging from 18 to 48 items.
What are the different perspectives on the relationship between HPWPs and organizational performance?
Three main perspectives are discussed: the strategic development perspective (alignment of HPWPs with organizational strategy), the internal systems perspective (compatibility and coordination of internal HRM practices), and the sustainable competitive advantage perspective (employee participation in HPWP success). The paper emphasizes that the combined effect of HPWPs is crucial for positive outcomes.
What is the role of organizational learning and entrepreneurial orientation?
The paper explores organizational learning and entrepreneurial orientation as mediating and moderating factors influencing the relationship between HPWPs and organizational performance. Their influence on the effectiveness of HPWPs is a central theme.
How are HPWPs viewed as tools for behavior and attitude control?
This perspective examines HPWPs as instruments for managing employee behavior and attitudes. It emphasizes the creation of a supportive environment and the role of social exchange theory in fostering positive employee-organization relationships. Tools such as career planning, skill training, and employee support are highlighted as key components.
What is the importance of social exchange theory in the context of HPWPs?
Social exchange theory is crucial because it highlights how the success of HPWPs depends on creating a positive exchange relationship between the organization and its employees. A strong exchange relationship is seen as essential for improved organizational commitment, employee behavior, and ultimately, enhanced organizational performance.
What are the key chapters and their summaries?
The paper includes chapters on: Introduction (setting the stage and outlining the research question); High Performance Work Practices (HPWPs): Definitions and Perspectives (exploring the various definitions and interpretations of HPWPs); HPWPs and Organisational Performance: Diverse Perspectives (analyzing the multifaceted relationship from different viewpoints); and HPWPs as Tools for Behavior and Attitude Control (examining HPWPs as mechanisms for managing employee behavior and attitudes).
What are the keywords associated with this paper?
Key words include High-Performance Work Practices (HPWPs), organizational performance, organizational learning, entrepreneurial orientation, mediating factors, moderating factors, strategic human resource management (SHRM), employee commitment, discretionary effort, sustainable competitive advantage, and social exchange theory.
- Citar trabajo
- David Onditi (Autor), 2020, Will high performance work practices always improve organisational performance?, Múnich, GRIN Verlag, https://www.grin.com/document/916690
