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“Do “High Performance Work Systems” Really Work?”

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“Do “High Performance Work Systems” Really Work?”
Critically assess the concept of “high performance work systems”

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Critically assess the concept of “high performance work systems”

The relationship between employees and their managers is changing. This essay critically assesses high performance work systems (HPWS) and how it effects an organization. Before proceeding to critically assess high performance work systems it is necessary to clarify exactly what these systems consist of. After investigating the foundations of high performance work systems the essay will be extended to contrast the gains and the shortcomings, which arise as a result of these highly contemporary managerial systems. High performance work systems can be familiarly explained as an arrangement of human resource processes bunched together in order to increase a firm’s productivity and create an organizations’ competitive advantage. Whether or not these systems can create a sustainable competitive advantage is a vital question. This essay will also analyse external factors to validate their role in the success of these current work systems.

Firstly ‘high performance work systems’ can be analysed in terms of their contemporary entrance into the workplace. In order to evaluate the reasons for the introduction of high performance work systems, such as higher involvement (Lawler, 1992) and higher commitment (Arthur, 1992), it is important to recognize the previous system. Lawler (1992) suggests that over the past twenty years the ‘loyalty contract’ has been proved impractical and unattractive to the managerial world of today. This is a result of increased globalisation, technological advances and the massive increases in the requirement of more skilled workers. Lawler (1992) argues that it is important these days for managers to “utilize approaches to management that are advantageous to them and their employees and that lead to higher levels of performance and employee retention”, so that their employees do not look to



Bibliography: Arthur, J.B. (1992), "The link between business strategy and industrial relations systems in American steel minimills", Industrial and Labor Review, Vol. 45 No.3, pp.188-506. Arthur, J.B. (1994), ‘Effects of Human Resource Systems on Manufacturing Performance and Turnover’, Academy of Management Journal, 37(3), 670-87. Becker, B.E., Huselid, M., Pickus, P. & Spratt, M. (1997), ‘HR as a Source of Shareholder Value: Research and Recommendations’, Human Resource Management, 36(1), 39-47. Davis, E., Gollan, P. & Hamberger, J. (2005), ‘High Performance Work Systems’ Asia-Pacific Journal of Human Resources, 43(1). Hamberger, J. (2003), ‘Australian Workplace Agreements and High Performance Workplaces: A Critique of Mitchell and Fetter’, Journal of Industrial Relations, 45(4). Harley, B. (2002), ‘Employee Responses to High Performance Work System Practices: An Analysis of the AWIRS95 Data’, Journal of Industrial Relations, 44(3), 418-434. Huselid, M.A., (1995), ‘The Impact of Human Resource Management Practices on Turnover, Productivity and Corporate Financial Performance’, Academy of Management Journal, 38 (635-70). Ichniowski, C., Shaw, K. & Prennushi, G. (1997), ‘The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines’, American Economic Review, 87(3), 291-313. Lawler, E. (1992), The Ultimate Advantage: Creating the High-Involvement Organization, Jossey-Bass, San Francisco, CA. Lawler, E.E. (2005), ‘Creating High Performance Organizations’, Asia Pacific Journal Asia Pacific Journal of Human Resources, 43(1), 1-17. Lawler, E.E. (2005), ‘From Human Resource Management to Organizational Effectiveness’, Human Resource Management, 44(2), 165-69. Organ, D.W. (1988), “Organisational Citizenship Behaviour: The good soldier syndrome”, Lexington, MA: Lexington Books. Pfeffer, J. & Veiga, J.F. (1999), ‘Putting People First for Organisational Success’, Academy of Management Executive, 13(2), 37-48. Pfeffer, J (1998), “The Human Equation: Building Profits by putting people first”, Boston, MA, Harvard School Press. Purcell, J. (1999), ‘Best Practice and Best Fit: Chimera or Cul-de-sac?’, Human Resource Management Journal, 9(3), 26-41. Ramsay, H., Scholarios, D. & Harley, B. (2000), ‘Employees and High-Performance Work Systems: Testing inside the Black Box’, British Journal of Industrial Relations, Thomas, K & Velthouse, B. (1990), “Cognitive elements of empowerment: An “Interpretive” Model of Intrinsic Task Motivation”, The Academy of Management Varma, A., Beatty, R., Schneier, C., & Ulrich, D. (1999), ‘High Performance Work Systems: Exciting Discovery or Passing Fad?’ Human Resource Planning, 22(1), 26- White, B.W. (1994), “Developing Leaders for the High-Performance Workplace”, Human Resource Management, 33(1), 161-168.

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