In addition, companies can use reward schemes to improve performance. Better-performing firms tend to invest in more sophisticated HRM practices, which further enhances organizational performance Shih, et.
August 28, by Eric D. Barnes writes that the concept and ideas for high performance work systems has existed for quite some time and has its roots in the late twentieth century amid the upheaval in the United States manufacturing environment Barnes,p.
The concepts that arose out of these turbulent times are items that eventually would become key components of a high performance work system.
The ability for an employee to participate in the decision making process is considered to be one of the key elements of an HPWS because it allows the employee to make decisions that effect their immediate environment, which in turn effect the entire organization.
This participation provides leads to employees feeling more empowered, which leads to a more committed workforce, at least in theory. The second component is training. This training provides employees with the necessary skills to perform their jobs in a more effective manner as well as the opportunity to assume greater responsibility within an organization.
Training also gives organizations a way to cross-train employees in different skills and roles to ensure that employees understand many roles within an organization. The third component is employee incentives.
The two previous elements help to prepare employees and organizations for successful HPWS implementation and operation, but without incentives, the system will most likely fail. Incentives can take many forms, with some examples being stock options and other equity plans, profit sharing plans, pay raises, bonuses for meeting performance targets and other monetary incentives.
In addition, incentives can take the form of non-monetary options such as time off, flextime, group lunches and other special employee benefits.
In addition to the three components of involvement, training and incentives, there is also a fourth element that makes up another key component of modern day high performance work systems. Technology is everywhere in the world today and must be considered as part of any organizational development exercise.
The challenge of implementing and sustaining high performance work systems in the United States: University of Notre Dame. Managing human resources 13th ed.ical analysis of the ﬁrm’s decision to use high performance work systems.
A model of dynamic decision making under uncertainty is used to analyze the value of using self-managed work teams and formal training programs. The challenge of implementing and sustaining high performance work systems in the United States: An evolutionary analysis of I/N Tek and Kote.
Doctoral dissertation: University of Notre Dame. Bohlander, G., & Snell, S. (). Systematic review of the high-performance work systems literature in the health-care sector - Staff satisfaction and organisational performance: evidence from a longitudinal secondary analysis of the NHS staff survey and outcome data.
High Performance Work Systems (HPWS) have become highly important as a source of competitive advantage in today's competitive business environment. Dec 07, · Tool 11 High Performance Work System Gap Analysis KMG. Loading Unsubscribe from KMG?
Developing High Performance Work Culture - Duration: Muhd Fizwadi 1, views. edge work and workers, and high-performance work systems (HPWS) all reflect a new interest in "people" as a source of competitive advantage, rather than a cost to be minimized.
By extension, intellectual assets and the organiza-tional systems that attract, develop, and retain them are emerging as significant elements in strategic decisionmaking.