Employees, Managers, and High Performance Work Practices: A “Win-Win” or the Transformational Leader’s Exploitative Approach to Organizational Performance

Abstract

The role of employees as a source of competitive advantage for an organization has prompted a shift in human resource management (HRM) research, from control-based workplace practices to more f lexible and participative management systems (Barling, Iverson, & Kelloway, 2003; Delery, 1998; Edwards & Wright, 2001). Central to employees’ role in driving competitive success is the concept of high performance work practices (HPWPs), a system of “innovative” HRM practices that optimize employees’ knowledge, skills, and abilities to promote organizational performance (Beltran-Martin, Roca-Puig, Escrig-Tena, & BouLlusar, 2008). The term “innovative” as used in this context identifies HPWP as a strategy for achieving organizational growth through employee involvement in workplace decisions and enhanced management-employee collaboration (Kalmi & Kauhanen, 2008). A considerable number of studies have associated HPWP with organizational-level outcomes such as productivity (Ichniowski, Shaw, & Prennushi, 1997), profitability (Wright, Gardner, Moynihan, & Allen, 2005), and reduced employee turnover (Huselid, 1995).