High –Performance work practices (HPWP) is a perspective which can hold that effective organizations incorporate several workplace practices that leverage the potential of human capital. According to John Tomer, the essential characteristics of HPWP are employee security, selective hiring of new personnel, self-managed teams and decentralization of decision making as basic principle of organization design, extensive training, reduced status distinctions and barriers across levels, and extensive sharing of financial and performance information throughout the organization. There are five components of HPWP, which are self-managing work teams, employee involvement, integrated production technologies, organizational learning, and total quality management. Self-managing work teams are groups of employees that carry out interdependent work with high levels of autonomy and responsibilities. Employee involvement is the best practice used when low involvement or parallel involvement such as suggestion boxes, moderate involvement or participative management such as increased responsibilities for daily work decision, and high involvement or employee empowerment. Integrated production technologies are sets of tools used to enhance flexibility in production of services. Organizational learning is a practice that developed capabilities to adapt to their working environment and to gather information in order to anticipate future environmental change. Total quality management is a set of practices designed to make employees who assemble products or deliver services more responsible for the quality of those products and services. The HPWP perspectives are starting with the idea that knowledge, skills and abilities which known as human capital that employees possess is a vital source of competitive benefit for an organizations (McShane, 2013). The opportunities or minimize threats in the external environment that will be realized by the organization with the help of human capital. For example, a newly formed company cannot rapidly develop a workforce identical to a workforce at an established company.
Many high performance work practices have been studied over the years. It research that four practices with strong research support are employee involvement, job autonomy, employee competence, and performance or skill-based rewards. Furthermore, employee involvement and job autonomy can strengthen employee motivation as well as improve their decision making, organizational responsiveness and commitment to change. Another key variable in the HPWP model is employee competence. Organizations are in a favor and effective when they select and recruit people with relevant values, skills, knowledge and other personal characteristics. Next, a fourth characteristic of high performance organizations is that they link performance and skill development to various forms of financial and non-financial rewards valued by employees. The HPWP perspective is currently popular among Organizational Behavior experts and practitioners, but it also has its critics. Many studies have been done try to find out which practices can predict organizational performance without understanding why those practices should have this effect. Recently, researchers have investigated that numerous potential high-performance work practices, but they will concentrated on four that are recognized in most studies: employee involvement, job autonomy, competency development, and performance’s reward and competency(Von Glinow, 2010) .Telstra strengthened these four practices can improve customer service, particularly in its contact centers. Each of these four work practices individually can improve organizational performance, but study has suggested that they have a stronger effect when combined together. The two factors – involving employee in decision making and give them more autonomy over their working activities. It tends to strengthen employee motivation as well as...
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