A High-Performance Work System (HPWS) is the right combination of people, technology, and organizational structure that makes full use of the organization’s resources and opportunities in achieving its goal. There are four powerful principles:
a) Shared information
b) Knowledge development
c) Performance – reward linkage
These principles must work together in a smoothly functioning whole. A HPWS achieves the organization’s goals, typically including growth, productivity and mainly in achieving high profits. In achieving these overall goals, the HPWS meets such intermediate goals as high quality, innovation, customer satisfaction, job satisfaction, and reduced absenteeism and turnover.
Many conditions contribute to HPWS. Among of them are giving employee’s skills, incentives, knowledge, autonomy, and employee satisfaction. Teamwork and empowerment can make work more satisfying and provide a means for employees to improve quality and productivity. Organizations can improve performance by creating a learning organization, in which people can constantly learn and share knowledge so that they can continually expand their capacity to achieve the results that they desired. In a high-performance organization, employee’s experience job satisfaction. Meanwhile, for long-run high performance, organizations and employees must be ethical as well.
The successful organization and large with the outstanding achievement in business will involve the participation of many employee. It is because organization need faced a lot of challenge as a result of globalization, rapid technological advances, the emphasis in faster change and innovation, the demand for high quality and good service to customers as well as the risks and rewards of managing an organization. Organization need to using human resource practices and incorporate HPWS that to improve the employee engagement and performance. Directly, the organization will offer a variety of rewards to an employee who gives the best performance.
This approach is effective at all levels and functions within an organization to create an efficient worker. By this way, the organization can continue to succeed and become successful organization in a much longer time. A successful performance based on reward culture can literally transform your business in good condition and successful business. By using HPWS and HR practices that have been merged can increase employee efficiency is lower, higher labor productivity and increase overall organizational performance (Datta, Guthric & Wright, 2005)
Designing a High-Performance Work System
Based on the literature and theories that we have found from various journals, we conclude that most of the company does apply each of the four principles of HPWS and these principles do provide an adequate context for designing high-performance work systems. We have analyze each principle and found out that every organization uses at least one or all the principle of HPWS.
Shared information is very important in order to achieve the organization’s objective and also important element in improving outcomes for all. Shared information is the key to the organization goal of delivering better, more efficient services that coordinated around the needs of the individual. Many practitioners recognize the importance of this principle and there is much good practice. Most organizations had realized that sharing of information in various ways allow employees to solve problem, reducing costs and enable the overlapping; thus it creates a new innovation through knowledge sharing processes. Now, employee has been given information about the organization in advanced. During the first week of...
Appendix – Case Study 1 17
Figure 1.1: Research model between e-HRM and HRM effectiveness
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