Abstract
Over the past few years, there has been growing research interest in the competitive advantage associated with high performance work systems.There is rising interest in using high performance work system practices, because evidence showed that organizations that implemented such systems recorded remarkable success, especially in organizations in the manufacturing industry. It will be interesting to find out whether the impressive results can be applied to service sector since work culture and management practices differ between the manufacturing firms and service firms. This conceptual paper explores the research findings of high performance work systems in the service sector. The paper may be valuable to those who are interested in understanding the phenomenon of high performance work systems in the service sector for research purposes. Key Words: High Performance Work Systems, Human Resource Management, Organizational Performance, Service Sector
Highlights
People are our most important asset and the human resource management (HRM) literature highlights the importance of people in achieving organizational performance (OP)
As stated by Boxall and Macky (2009), three landmark publications paved the way to concern the importance of high performance work systems (HPWS) in America: (1) America’s Choice: High Skills or Low Wages! Published by Commission on the Skills of the American Workforce in 1990, (2) the new American Workplace published by Appelbaum and Batt in 1994 and (3) Manufacturing Advantage published by Appelbaum, Bailey, Berg, and Kalleberg in 2000
As Harley, Allen, and Sargent (2007:610) report: The theoretical arguments made against the general applicability of HPWS in the service sector are based on the segmentation of employment in services
Summary
People are our most important asset and the human resource management (HRM) literature highlights the importance of people in achieving organizational performance (OP). A type of HRM system, are an important concept in contemporary research on business organizations (Boxall and Macky, 2007; Dayarathna, 2012). U.S companies needed to better utilize their human resources (HR) as they strived to improve quality and productivity to compete with firms like Toyota (Dessler, 2009). They gave a new life to their HRM systems by introducing HPWS which increased the involvement of employees and raised their skills and incentives (Macduffie, 1995)
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