Implementing HPWS among the indigenous companies in China

Abstract

Given the increasing influence of high-performance work systems (HPWS) in China under economic reform, so far most research has been focusing on MNCs in China, but not many studies have been undertaken on indigenous companies. In addition, most publications have investigated the relevant issues from a managerial perspective only. Therefore, we have designed this research by investigating the relevant issues among the indigenous companies in China from both managerial and employee perspectives. Based on semi-structured interviews with both managers and employees, we found (1) HPWS practices have been adopted by indigenous companies in China but at different levels with mixed HPWS and indigenous HRM practices, (2) managers and employees have different perceptions of the key elements of HPWS being adopted and (3) employees’ perceptions of HPWS policies and practices influence their attitude and behaviour. The outcomes suggest that positive employee–manager relationships enhance employee attitudes, and trust from management creates feelings of recognition, accomplishment and belonging. This research contributes to HRM research by filling the gaps in studies of the adoption by indigenous companies of mixed HRM practices incorporating indigenous HRM and foreign influences, such as HPWS, as well as highlighting the effect on employees.