The ‘Talk’ versus the ‘Walk’: High Performance Work Systems, Labour Market Flexibility and Lessons from Asian Workers

Abstract

High commitment or high performance work systems (HPWS) are a managerial approach aimed at facilitating high performance companies by transforming employees from merely being workers into partners with employers in realizing company goals. To achieve this HPWS use human resource practices that draw on employee commitment, involvement and empowerment. The pursuit of HPWS with employees in export-oriented industries (EOI) in newly industrializing economies (NIEs) of Malaysia and Sri Lanka is explored here. The discussion confirms a number of difficulties in realizing the aims of an HPWS approach because employers simultaneously pursue labour market flexibility (LMF) practices. As a result, this hybrid labour management model fractures workers' commitment thus leading to a mismatch between the ‘talk’ and ‘walk’ of HPWS in these environments with significant implications for employers.