There is no doubt that all associations have a few duties towards their partners and to satisfy these responsibilities they vigorously depend on the execution of their workforce. Be that as it may, in what manner would they be able to accomplish the most extreme level of output from their HR? The answer lies in the term 'High Performance Work System'. High performance Work System is a framework in which packages of various however between related HR practices are consolidated and connected in an association where both representative and business are profited with these corresponding practices. In addition to this, it is kind of management that try to create an environment within the organization where employees are not only involved in decision making process but also have responsibilities toward firm. More specifically, Investment into human resources result as competitive advantage (Becker, 1998). The more noteworthy a firm uses these HR hones then it can achieve more elevated amount of efficiency, gainfulness and business sector esteem (Husewlid 1995; Arthur 1994; Guthrie 2001).Many studies have been led and the vast majority of the times scholastics and experts discovered positive connection in the middle of high performance work system and efficiency or productivity of an organization. The idea of the HPWS was basically generated by the David Nadler to attain company's architecture which is the combination social and technical side of work. The four important principles named as Shared information, Knowledge development Performance–reward linkage, Egalitarianism are not only working as building blocks for those managers who actually want high performance work systems in organisation but also becoming foundation for modern human resource management.
Admittedly, the competition among organization has increased rapidly and this ultimately results as rise in many competitive challenges for organization known as adapting global challenges, responding to consumers, technology embracement and development of intellectual cost and containing costs. High performance work systems is a combination of different work structures, human resources practices and management procedures. The main motive behind this combination is to enhance performance and well-being of an employee. The main key components of high work performance systems are work- flow design and team work, staffing practices, training and development, compensation, supportive information technologies, management process and leadership which are discussed below.
The work flow designing the initial start of the HPWS. The two main factors which are responsible for enforcing firms to design their work flows again are total quality management (TQM) and reengineering. It is advised by numerous experts to managers that rather than dividing job into different units they should concentrate on main business processes responsible for create teams and drive consumer values (Kling, 1995). The most suitable example of this is Federal Express who is designing its delivery procedure again by giving access to their drivers for making essential changes where required and route planning as drivers know more about routes and consumers. Consequently, drivers in Federal Express are working as sales representatives for them. In addition to this, they all work together as a team to identify issues behind slow deliveries and give their best to solve these issues themselves. To facilitate this, modern equipments of communication are stalled in the trucks so that it become easy for driver group to balance routes (Kaydo, 1998). Identically, when Colgate –Palmolive started a plant in Cambridge, Ohio, it was responsibility of managers to form teams especially for major work procedures to produce various products named as Fab, Ajax and Palmolive detergent. Rather than dividing each step of production into different steps, it is better to work as a team together to produce liquid detergent, fill bottles, labelling and packing of product and finally deliver them (Shulman, 2001). It is clear from above two examples that if work flow is designed again around main business procedures then it facilitate teamwork, enables employee to take important decisions and knowledge and skill of an employee is used in beneficial way (Chen, 2002). ‘
Only work redesign is not appropriate for high performance work systems. One study reveals that if an organization merge HR practices with changes in work flow design then it will enhance skill development and involvement of an employee. As a result, performance and satisfaction level will be high in that organization (Preuss & Lautsch, 2002). In order to get best candidates, staffing process need to be intensive and broad. Therefore, by choosing those candidates who are not only skilled but also capable for learning and work cooperatively, firms are more likely to receive profit for time and expense they spend in selection procedure. These days human resource information make it easier for firms to find individuals with specific skills. Obviously, skilled employee take less time in selection as well as to develop. Sometime it can be seen that organization hire employees in order to save money. As a consequence, most of time they hire unskilled people and spend huge on their training, severance and recruitment of replacements (Bassi & Buren, 1997). Most importantly, for an organization which make effort to remain lean, probably after an annoying period of downsizing, high performance work systems can be effective for good performance (Thomas, 1997).
Training mainly focus on the skills that an employee must have to fulfill responsibility in a high performance work environment. To illustrate, Schindler Elevator which is the second largest manufacturer of elevator offers a 60 hours training programme which is basically a kind of testing procedure about company history, safety, rules and regulation of plant, just –in –time techniques and fundamental shop math. Further, Schindler provide minimum five days training in classroom annually (Bailey, 2000). In the same way, Saturn provide several hundred hours training to their fresher staff members. The main aim behind training is to concentrate on various skills like problem solving, interpersonal and technical and also develop a wide knowledge of work procedure which is done by other employee around him instead of just have knowledge of his/her work. For Example, Trihealth System established cross training to make group work and cooperation easier across various units. Eventually, it helps staff to spot problems and it give them permission to offer solution for improvement.
Compensation package is essential in high performing work environment as different things are asked from workers. Therefore, it is not fair to pay every employee equally. Many firms are looking for alternative plans for compensation. In order to enhance performance it is important to include some kind of incentives for employee. There are numerous organization such as Shell Canada, Nortel Networks and Honeywell which are paying as per having different job skills. By doing this, they are making a wide skill base among workers and a more flexible group of people so that they can be rotated. More interestingly, Honeywell has also tried ‘intracapital'-which is a group of money workers and if the firm meet with its desired profit goal then employee can spend money on the improvement of capital (Batt &Moynihan, 2002). It is clear that in HPWS workers are rewarded based on their performance and rewards they receive can be non-financial, financial or based on growth option. These kind of rewards are important as it motivate them to fulfill the expectations of high authorities in an organization. Moreover, it makes them feel financially and psychologically satisfied.
Good management practices is key component of HPWS which include mere a kind of practice where management is known for their practices. To get the maximum output trust is essential and it should be on both side. With the help of trust workers will able to correlate with the management strategies. In HPWS leadership issue can be seen at every stage. Support is essential at executive level for High performance work environment and change in culture and business procedure. For example, American Express and Reebok international reveal that favorable outcome of HPWS mostly rely on the rotation of the roles of team leaders and managers. In any organization managers and supervisor are not only employees but they work more as facilitators, coach and integrators of group efforts (Longenecker, 2001). It is important to mention here that in Kodak, group leaders are rotated in different stage as it is beneficial for team development.
Communication and information technologies are one more important component of HPWS. Different type of technologies often build an infrastructure for communication and information sharing which is obviously important for the performance of any business. Federal Express is renowned for its technology used for route packages. The tracking system of this organization is not only helpful in monitoring but also useful in spotting problem and for solving rapidly, whereas Sally Industries allocate various projects to their workers with the help of information technology. When an organization develop a computerized system then it makes easier to track time and budget spent on various projects by employee. But it is not always essential that information technologies must be high tech because the richest communication occur between more than one individuals is face to face. However, HPWS cannot be fruitful without precise and time to time communication (Newton, 1998).
Above mentioned components are extremely helpful for any hierarchical execution. Numerous exploratory studies have been directed about the impacts of HPWS. More often than not results are sure. Above all else associations with HPWS pick up similarly more benefit than other who don't receive this practice since they use the ideal level of their restricted assets. Thus they lead in the business sector with cost administration. HPWS has extremely positive effect on organization's quality, piece of the overall industry, and deals turnover. In entire the aggregate profitability enhances like anything. Besides Retention of workers is additionally connected absolutely with HPWS. It is an extremely regular and difficult issue in monetary industry. Through HPWS workers land higher fulfilment from position and administration. So they don't generally glance around for occupations with insignificant contrasts. These segments are all that much decidedly related with quality administrations, developments and client's confidence. HPWS outfits a representative with training and improvement so he feels ready to carry out his occupation proficiently. There is more extent of developments and innovation in HPWS. This is critical and helpful for any association. This practices have exceptionally positive association with client confidence which is the most imperative prerequisite of any association. All parts of HPWS are exceptionally useful for an association's execution since they are firmly connected to fulfil worker's need, client's need and budgetary and non-monetary targets of the organization. Some of the positive outcome of HPWS are mentioned below.
A New Jersey based manufacturing company, Ames Rubber Corporation received 48% increment in production and continuous 5 years revenue growth.
Sales at San Francisco firm, Connor Manufacturing firm increased by 21%, profit on various operation rose 21% and new orders grew by 34%.
In seven-year period, Granite Rock, a construction material and mining company in Watsonville, California, received an 88% rise in market share, , and income per employee was 30 %t more than the national average.
In West Virginia, One Valley Bank of Clarksburg's workforce shift decreased by 48%, productivity increased by 24 %, equity return grew 72 %, and profits rose 109 percent in just three years.
(Gephart & Buren, 1996)
There are a percentage of the issues identified with the utilization of High Performance work rehearses. One of the vital issues raised by HR specialists is the wonder of black box. This intended to be getting to the trouble of appropriate relationship in HR practices and company's yield. Alvesson (2009) proposes that "Examination does not continue past endeavours to locate an observational relationship between HR rehearses and hierarchical execution. The wonders are in a black box. Just information and yield are enlisted and what is occurring stays obfuscated in the dark.” Secondly the idea of HPWS has issues with respect to its constitutes. There is no flawless definition or parts of HPWS given by scientists. Numerous scholars and professionals work in the idea of HPWS. And still, at the end of the day every one of the times they think of various segments (Shin et.al 2005). For a firm it is hard to pick a flawless methodology for its hitter execution.
Overall, superior work frameworks assume the key part in a company's execution. Despite the fact that there are a few issues in regards to the appropriation of the arrangement and strategy to assess the sources and still, at the end of the day HPWS are critical and productive for any association. By receiving these practices a firm can utilize its HR up to the most abnormal amount.
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Jeffrey Kling, “High Performance Work Systems and Firm Performance,”Monthly Labor Review, May 1995,29–36.See also
Chad Kaydo, “Top of the Charts: FedEx,” Sales and Marketing Management 150, no. 7 (July 1998): 46, 48;
Michael Trachtman, “Roving Internet Appliances,” Web Techniques 6, no. 10 (October 2001): 55–57; Richard Shulman,“Just Say the Word,” Supermarket Business 56, no. 6 (June 15, 2001): 19–20; “Customer Service Excellence: Continuously Delighting Your Customers,”PR Newswire (February 24, 2005).
Mark Chen, “Applying the High Performance Work Team to EPC,” AACE International Transactions (2002): PM61–PM67;
Valerie Sessa, “Supporting Work Team Effectiveness: Best Management Practices for Fostering High Performance,” Personnel Psychology 53, no. 2 (Summer 2000): 457–60.
Lawler, Mohrman, and Ledford, Creating High Performance Organizations; Eileen Appelbaum, Thomas Bailey, Peter Berg, and Narne Kalleberg, Manufacturing Advantage: Why HighPerformance Work Systems Pay Off (Ithaca, NY: Cornell University Press, 2000); Gil Preuss and Brenda Lautsch, “The Effect of Formal versus Informal Job Security on Employee Involvement Programs,” Relations Industrielles 57, no. 3 (Summer 2002): 517–39;
Wendy S. Becker, “Manufacturing Advantage: Why High-Performance Work Systems Pay Off,” Personnel Psychology 56, no. 2 (Summer 2003): 549–53; “Nike Factories to Get Help from MIT's Sloan School,” InformationWeek (April 13, 2005). Laurie J. Bassi and Mark E. Van Buren, “Sustaining High Performance in Bad Times,” Training & Development 51, no. 6 (June 1997): 32–42;
Katie Thomas, “Short-Term Downsizing, Long-Term Performance,” Incentive 171, no. 4 (April 1997): 14;
Nik Theodore and Rachel Weber, “Changing Work Organization in Small Manufacturers: Challenges for Economic Development,” Economic Development Quarterly 15, no. 4 (November 2001): 367–79.
Cristina Gibson and Mary Zellmer-Bruhn, “Metaphors and Meaning: An Intercultural Analysis of the Concept of Teamwork,” Administrative Science Quarterly 46, no. 2 (June 2001): 274–303;
Diane Bailey, “Modeling Work Group Effectiveness in High-Technology Manufacturing Environments,” IIE Transactions 32, no. 4 (April 2000): 361–68;
Mark E. Van Buren and Jon M. Werner, “High Performance Work Systems,” B&E Review (October–December 1996): 15–23; “Schindler Elevator Announces Center for Service Excellence; Holland, OH Facility to Serve as National Support Center,”PR Newswire (July 21,2004);“Large Organizations That Focus on Excellence in Human Capital Management May Be More Likely to Outperform the Market, According to Taleo Customer Study,”PR Newswire (March 30, 2005).
Rosemary Batt and Lisa Moynihan,“The Viability of Alternative Call Centre Production Models,” Human Resource Management Journal12,no.4 (2002)
14.For more information on the potential application of “intracapital,” see
Gifford Pinchot, “Free Intraprise,”Executive Excellence 18, no. 1 (January 2001): 10. 13. David Paper,James Rodger,and Parag Pendharker,“A BPR Case Study at Honeywell,” Business Process Management Journal 7, no. 2 (2001): 85–93. See also Robert McNabb and Keith Whitfield, “Job Evaluation and High Performance Work Practices: Compatible or Conflictual?” Journal of Management Studies 38, no. 2 (March 2001): 293–312; Leslie A. Weatherly, “Performance Management: Getting It Right from the Start,” HRMagazine 49, no. 3 (March 2004): S1–S11.
( Martha A. Gephart and Mark E. Van Buren, 1996, “The Power of High Performance Work Systems,” Training & Development 50, vol. 10, pp.21–36.)
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