Abstract
The main objective of this review article is to produce a comprehensible collection of existing resources in the literature to explore the relation between high-performance work practices (HPWPs) and organizational performance in an attempt to evaluate and abridge the ways through which HPWPs can improve organizational performance. Additionally, the aim is to reveal how high-performance work practices can influence the positive change in organizational performance as many studies results demonstrate that high-performance work practices can most of the time considerably envisage organizational performance. However, and even though high-performance work practices are deemed to have a great impact over organizational performance, this paper will not overlook HPWPs possible peripheral setbacks and will try to uncover some of HPWPs undesirable effects.
Highlights
As soon as organizations realized the importance of employees, they started to search for a way to benefit from their huge capabilities
Despite the initial agreement to call the practices that lead to higher organizational performance by the name of “high performance work practices” (HPWPs), the challenge was to estimate the size of the link between those practices and organizational performance and in measuring the effects of HPWPs on organizational performance after their implementation
Many of those researches reached collective conclusions: the positive organizational results are linked to the right bundle of selected HPWPs, the variation of HPWPs effects depend on the size, culture, structure, sector and other environmental factors, and the importance of putting the HPWPs into the organization systems is indispensable to improve overall performance
Summary
As soon as organizations realized the importance of employees, they started to search for a way to benefit from their huge capabilities. If employees are trained, motivated, and encouraged, they can differentiate organizations by increasing organizational creativity, innovation, productivity, and profitability (Lee, Mazzei, & Kim, 2018) This focuses on human potential gave birth to people management within organizations, or in other words, what we call “human resources management”. These practices are mainly called “high performance work practices” (HPWPs) (Pittino, Visintin, Lenger, & Sternad, 2016). The purpose of this review article is to highlight the effects of high-performance work practices on organizational performance from the wide literature in an attempt to evaluate and abridge the ways through which HPWPs can improve organizational performance without overlooking HPWPs possible peripheral setbacks
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