High-performance Work Systems Practices Research Articles

Feeling like owners: the impact of high-performance work practices and psychological ownership on employee outcomes in employee-owned companies

ABSTRACT A central finding of scholarship on employee ownership (EO) is that EO has the strongest impacts on employee outcomes when implemented with other management practices that are typically associated with high-performance work systems (HPWS). However, our explanations for why these complementary practices matter remain underdeveloped. In this paper, we examine whether the extent to which employees feel like owners, using the construct of psychological ownership (PO), mediates the impact of three HPWS practices on four employee outcomes in a dataset of 881 employees in nine companies with employee stock ownership plans (ESOPs) in the United States. Our findings support our core argument that these practices make it more likely that employees will feel like owners, which in turn leads to positive impacts on employee outcomes. More specifically, we find that the extent to which employees perceive that they have influence, are engaged as owners through information sharing and business literacy training, and receive high quality communications about EO are positively associated with PO, and that PO is positively associated with organizational commitment, turnover intention, voice behavior, and helping behavior. We discuss the theoretical, management, and policy implications of our analysis and findings.

HIGH PERFORMANCE WORK SYSTEM AND ORGANIZATIONAL INNOVATION: THE MEDIATING ROLE OF INNOVATIVE WORK BEHAVIOUR

This research aims to examine the influence of High Performance Work System (HPWS) on organizational innovation Pakistan, with a focus on the mediating variable of Innovative Work Behavior (IWB) in the health sector of Pakistan. The study's sample comprises 530 doctors from the public and private hospitals within Sindh province of Pakistan both sectors. Data analysis was conducted using Smart PLS. The findings revealed that the intervening effect of IWB was partial, indicating its significant role in facilitating the correlation of HPWS with organizational innovation. Furthermore, the statistical hypotheses were accepted, confirming the presence of HPWS indicated positive and significant impact on both IWB and organizational innovation. The findings cast light on the significance of implementing HPWS in hospital settings to cultivate a culture of innovative work behavior, thereby enhancing organizational innovation. The current research adds to the existing reservoir of knowledge by providing empirical evidence on the mechanism by which HPWS influences innovation-related outcomes. These insights have practical implications for hospital management, emphasizing the need to prioritize and support HPWS practices to foster a more innovative work environment among healthcare professionals.

From validation to execution: Exploring the practical implementation of the conjoint framework of Quality Management and High-Performance Work Systems

Quality Management System (QMS) and High-Performance Work System (HPWS) have transpired as leading improvement initiatives and management paradigms in pursuit of sustainable organizational effectiveness. Various organizations all over the globe have applied these practices using different combinations and blends. However, in a Conjoint Implementation scenario, an explicit understanding of the nature of the inter-relationship of these two improvement programs still lacks, and serious ambiguities exist about whether QMS and HPWS practices are mutually supportive, mutually exclusive, or one is antecedent to the other. Most of the integrated frameworks of QMS and HPWS available in the literature are either theoretical or anecdotal, where QMS is operationalized as a single/multi-dimensional construct, and HPWS is considered a set of individual HR practices without incorporating the configurational perspective of HR bundles/configuration. The particular evolution of these two complementary streams of exploration has recently been combined and reconciled by Rehmani et al. (2020a) [1] in an Integrated Framework for the conjoint implementation of QMS and HPWS in Engineering Organizations of Pakistan. Despite being statistically validated, the framework lacks a practical validation method, just like most other frameworks in the literature. The current study is the first of its kind, presenting a step-by-step practical validation procedure with a strategic roadmap for implementing hybrid frameworks of QMS and HPWS.This research aims to develop a standard validation process for all practitioners dealing with QMS and HPWS implementation issues in Engineering organizations in particular and others in general.

기업지배구조와 고성과작업시스템

This article examined the effects of corporate governance on the utilization of high performance work system (HPWS) and the magnitude of changes in HPWS practices over time. Based on extant research on HWPS and corporate governance, we derived three hypotheses. First, family firms are likely to utilize more HPWS practices than firms governed by professional managers are. Second, family firms are likely to utilize fewer HPWS practices than firms governed by professional managers. Third, firms governed by professional managers are more likely to change their HPWS practices than family firms. To test the hypotheses, we analyzed panel data composed of 317 firms, which were provided by Korea Research Institute for Vocational Education and Training. Panel regression results showed that the second and the third hypotheses were supported. Implications and directions for future research were discussed.

RECONNOITERING THE INTERVENING ROLE OF DYNAMIC CAPABILITIES BETWEEN HIGH-PERFORMANCE WORK SYSTEMS AND INNOVATION PERFORMANCE

Purpose of the study: This study explores the Impact of High-Performance Work System practices (HPWS), on innovation performance, through the intervening role of dynamic capabilities and innovation culture among the rapidly growing cement industry of Pakistan, which is the backbone of Pakistan's construction industry.
 Methodology: This is a self-administrative survey, and data were analyzed using Smart PLS 3.0, SPSS.
 Main Findings: HPWS has a positive impact on a firm's innovation performance. Furthermore, dynamic capabilities mediated the association between HPWS and innovation performance.
 Applications of this study: The study is essential for the cement industry, where traditional HRM has long been applied. Using HPWS would create a more innovative environment and establish dynamic capabilities that can trigger innovations such as administrative, incremental, radical, and marketing in the face of dynamic customer demands.
 Novelty/Originality of this study: This study has enriched our understanding of how organizations can improve their innovation performance in a complex and ambiguous environment, which is crucial to gaining competitive advantages. This study also suggests that developing a system of HPWS practices in organizations, particularly the cement industry, will help the organizations flourish and stay competitive in the marketplace and help elicit the right employee attitudes by fully mediating dynamic capabilities. Therefore, organizations should establish developed HPWS and create an innovation culture that will ultimately benefit the organization creates an innovation culture.

The impact of high performance work system on employee service performance: the role of organizational support and organizational identification

PurposeAn important objective of human resource (HR) research is to understand how HR practices can influence employee attitudes and behaviors in order to help achieve organizational goals via employee performance. The paper studies the relationship between High Performance Work System (HPWS) and employee service performance (ESP) via organizational support (OS) and organizational identification (OI). On one hand, this may help understand the “black box” between HPWS practices and ESP. On the other hand, while OS refers to employees' evaluations of favorable treatment from the organization and HPWS represent a significant channel the organization uses to communicate its support to employees, OS and OI literatures have not comprehensively examined the effect of HPWS practices on employee OS and OI beliefs.Design/methodology/approachThis study takes a quantitative approach and employs hierarchical regression from a sample of 467 employees in 10 commercial banks in Sierra Leone.FindingsThe results show a positive relationship between HPWS practices and ESP and at the same time OS and OI partially mediate the relationship, suggesting that employees draw inferences from the HPWS-related treatment they receive in assessing the supportiveness of the organization.Research limitations/implicationsIn this study, the authors put forth an innovative conceptual model of performance management by testing the relationships which have not been tested before, especially in a new context of banking industry in Sierra Leone. By implementing HPWS practices that demonstrate the organization cares about the employees' well-being and values their contribution, organizations are likely to be perceived as offering high levels of support for the employees.Originality/valueThe results of this study add to our knowledge about the antecedents of OS and OI. Moreover, while OS and OI research has been largely rooted in the organizational behavior literature, this study bridges the human resource literature and the organizational behavior literature, by combining HPWS, OS, OI and ESP.

Human resources flexibility as a mediating mechanism between high-performance work systems and organizational performance: a multilevel quasi-longitudinal study

PurposeThe purpose of this study is to investigate the impact of high-performance work systems (HPWS) on organizational performance through the mediating role of human resources (HR) flexibility (expressed by functional flexibility, skills malleability and behavioural flexibility).Design/methodology/approachThe study examines theoretical relationships in the Greek context, which reflects changing economic and financial crisis, based on multilevel structural equation modelling estimation, using three waves of sample data collected in years 2014, 2016 and 2018 from organizations operating in the private sector.FindingsThe study finds that although HPWS positively influences all three HR flexibility dimensions, this positive effect is not transferred equally to organizational performance. The dominant effect on organizational performance is attributed to skills malleability, a smaller effect to behavioural flexibility and a negligible effect to functional flexibility.Research limitations/implicationsAlthough the data collected refer to three different years, most of the companies and individuals responded to sampling were different. As such, the study does not allow for dynamic causal inferences due to its quasi-longitudinal nature.Practical implicationsThe findings of this study may influence managerial decisions in developing bundles of HPWS policies and practices in relation to HR flexibility attributes.Originality/valueSince most studies consider HR flexibility as an aggregated construct, this study is possibly one of the very few studies that is examining the differential impact of the HR flexibility dimensions on organizational performance in turbulent times.

Managing voluntary collective turnover: the impact of a cynical workplace climate

PurposeVoluntary collective turnover can be costly for workplaces. The authors investigate the effectiveness of high-performance work system (HPWS) intensity as a tool to manage voluntary collective turnover. Further, the authors investigate a cynical workplace climate (CWC) as a boundary condition on the HPWS intensity–voluntary collective turnover relationship.Design/methodology/approachThe unit of analysis is the workplace, with human resource (HR) managers providing data on HPWS practices in Time 1 (T1) and voluntary collective turnover two years later. Aggregated employee data were used to assess the cynical workplace climate. Hierarchical regression analysis was used to test the hypotheses.FindingsThis study’s results demonstrate a negative relationship between HPWS intensity and voluntary collective turnover when there is a low cynical workplace climate. The authors find that in a high cynical workplace climate, HPWS intensity is ineffective at managing voluntary collective turnover.Research limitations/implicationsThis study’s results show that HPWS intensity needs to be well received by the workforce to be effective in reducing voluntary collective turnover.Practical implicationsTo increase the chances of HPWS intensity reducing voluntary collective turnover, workplaces need to assess the level of employee cynicism in their workplace climates. When the climate is assessed as low in cynicism, the workplace can then consider implementing an HPWS.Originality/valueThe authors explain why the HPWS intensity–voluntary collective turnover relationship varies across workplaces. As HR practices are subject to interpretation, workplaces need to look beyond the practices in their HPWS and focus on employee receptivity to HR practices.

Impact of High Performance Work Systems on Organizational Performance

Today's business organizations require increased effectiveness and competitive advantage that can be achieved through High Performance Work Systems (HPWS). This study is proved the same effect in commercial banking sector of Pakistan through a quantitative research design using random sampling technique. A valid and reliable questionnaire tool was used to analyse the data through various statistical techniques. Employees' attitude concerning organizational performance influenced via various practiced HPWS measured in organizational commitment, job satisfaction, and employee turnover intention. The study revealed that reward system and selective staff are not aligned to employee attitude. Overall the study depicts that conventional banks are incapable to adopt HPWS practices in adequate, satisfactory, worthwhile, dynamic, and advantageous way. Additionally, short courses on career planning and development could spur colossal organizational growth among conventional banks in Faisalabad, Pakistan.

How hybrid HR systems affect performance in call centers

PurposeThe purpose of this paper is to examine the relationship between hybrid HR systems in call centers and their effect on workers' performance.Design/methodology/approachDrawing on a sample of 337 call center operator-supervisor dyads, the authors analyzed how the joint perceptions of monitoring and high-performance work systems (HPWS) are associated with workers' authenticity to explain performance, rated by supervisors.FindingsThe authors found that when monitoring is perceived as low, HPWS is not associated with authenticity, suggesting that it requires the joint effect of monitoring and HPWS to communicate HR management priorities in call centers. In addition, the authors found that high ratings of monitoring combined with low perceptions of HPWS were associated with the lowest levels of authenticity, whereas the highest levels of authenticity at work were found when high monitoring was combined with high HPWS. The results supported a conditional indirect effect through authenticity to explain when and how hybrid HR systems are associated with better supervisor-rated performance.Originality/valueThis is the first study to test the interaction effects between HPWS and monitoring practices to explain authenticity as a key strategic component of performance in call centers.

Do they really coexist? An empirical analysis of a conjoint implementation of Quality Management System and High Performance Work System on organizational effectiveness.

Over the past few decades, Quality Management System (QMS) and High Performance Work System (HPWS) have emerged as key concepts to enhance organizational effectiveness. All over the globe, majority of contemporary manufacturing and services organizations have applied at least one of these development strategies or even both. This study proposes an integrated framework of QMS and HPWS and empirically investigates the relationship between QMS and HPWS practices and their direct and indirect effects on organizational effectiveness using structural equation modelling (SEM). This research makes a number of significant contributions: (1) The black box of the conjoint implementation is opened up for better appreciation of the interplay of QMS and HPWS practices and their influence on organizational effectiveness (2) The key QMS practices recognized as contributing factor of performance have been classified and examined at two distinct levels i.e. QMS Top Level practices and QMS Core practices (3) The mediating and interaction effects of QMS Core practices and HPWS practices on the relationship of QMS-Top Level practices and organizational effectiveness have been thoroughly investigated. The proposed framework is tested through cross-sectional data from 90 Technical Services Organizations (TSO) operating in Pakistan. The research hypotheses are supported by the test results of the SEM. The findings and implications are discussed along with limitations and future research guidelines.

Study of managers in Vietnam shows HPWS practices impact both employer outcomes and firm performance

PurposeThe purpose of this paper was to explore the effects of high-performance work systems (HPWS) on the performance of Vietnamese firms.Design/methodology/approachThe authors adopt a longitudinal design to provide insights into why and how HPWS are shaped in Taiwan. They interviewed 17 leaders, including CEOs, HR managers and general managers in 17 Vietnamese service firms. They were interviewed twice, in 2013 then in 2017.FindingsAnalysis of the data showed that HPWS can impact both employee outcomes, such as attitudes, behaviours and productivity, and firm performance, such as firm innovation, firm growth and profit growth.Originality/valueThis was one of very few studies to try and understand how and why HPWS are shaped and executed to respond to environmental pressures.

Relationship between a high-performance work system and employee outcomes: A multilevel analysis

Although research on high-performance work systems (HPWS) is increasing, there are few studies in which the focus is on whether and how firm-level HPWS affect individual-level employee outcomes. Using social identity theory, we examined the relationship between HPWS and employee outcomes, and the role organizational identification plays as a mediator in this relationship. We used a multilevel research design and collected data at the organizational and individual levels from a sample of 485 employees of 32 companies in Guangdong Province, China. We used Amos 17.0 and hierarchical linear modeling 6.08 software to examine our hypotheses and the theoretical model. Results showed that organizational identification fully mediated the relationship between HPWS and employees' job performance as well as that between HPWS and their turnover intention. Our findings provide new insights into the relationship between firm-level human resource management and individual-level employee outcomes, and highlight the importance of considering the implementation of HPWS practices to strengthen employees' identification with the organization and improve their performance.

Servant Leadership Style and High-Performance Work System Practices: Pathway to a Sustainable Jordanian Airline Industry

The purpose of this study is to examine how servant leadership (SL) and high-performance work systems (HPWS) practices enable organizational performance, as shown by employee retention and employee satisfaction. Data was obtained from 300 full time employees in a private airline company in Jordan. The data was collected in three rounds, each separated by one-week time-lag. Structural equation modeling was used to test the proposed relationships and revealed that both servant leadership and HPWS practices were positively linked with employee satisfaction and retention, which were used as indicators of organizational sustainability. In order to understand how servant leadership and HPWS influence employee satisfaction and retention, we investigated the mediating role of employee engagement and discovered that it serves as a critical mechanism. The study affirmed that, in line with studies carried out in the west, servant leadership is also an effective leadership characteristic in the context of Jordan. Furthermore, the study helps to clarify the reason that servant leadership and HPWS lead to positive outcomes, due to the fact that these improve the engagement of employees. Thus, we understand that the increases in employee retention and satisfaction are due to the enhanced engagement of employees, and we show that engagement can be improved both by servant leadership and the application of HPWS in organizations. Consequently, the effectiveness and sustainability of the airline companies in Jordan will need to focus on primarily improving employee engagement.

High-performance work system practices in Vietnam: a study of managers’ perceptions

PurposeThe purpose of this paper is to explore the effects of high-performance work systems (HPWS) on the performance of Vietnamese firms. It teases out the antecedents and effects of managers’ beliefs about why HPWS exist and are adopted within their firms, and also what effects HPWS practices have on their firm’s performance.Design/methodology/approachThe authors adopt a longitudinal design to provide insights into why and how HPWS are shaped and diffused, and also how they convert the inputs into outputs such as HR outcomes, firm innovation and performance, based on a sample of 17 in-depth interviewees who were CEOs, HR managers, general managers in 17 Vietnamese service firms.FindingsResults demonstrate that HPWS can impact both employee outcomes (e.g. employee attitudes, behaviours and productivity), and firm performance (e.g. firm innovation, firm growth and profit growth).Practical implicationsThe study underscores the importance of HPWS as a response to organizational change that can help deal with external pressures and provides evidence about how the HPWS-innovation relationship is established in the research context.Originality/valueThis is among the first study to extend some aspects of institutional theory to understand the context of how and why HPWS are shaped and executed to respond to environmental pressures. It underscores the importance of HPWS as a response to organizational change that can help deal with external pressures, thereby serving as a leading step to yield meaningful outcomes with respect to the advancement of this research stream.

Converging HRM practices? A comparison of high performance work system practices in MNC subsidiaries and domestic firms in Pakistan

PurposeExisting work on convergence/divergence among HRM practices in MNCs and local firms mainly focuses on Europe and the USA. Limited research examines these organizations in Pakistan, hindering our understanding of what policies MNCs are likely to adopt there as well as the extent of any differences between HRM in MNC subsidiaries and local firms. The purpose of this paper is to examine the similarities and differences between the HRM practices of MNC subsidiaries and domestic firms to assess if there is evidence for convergence or divergence.Design/methodology/approachThe authors targeted MNC subsidiaries and domestically owned firms working in the banking, information technology and pharmaceutical sectors in Pakistan. These sectors have enjoyed a steady inflow of foreign direct investment and have a sizeable number of MNC subsidiaries. Out of 1,081 companies, some 392 participated in a face-to-face survey (response rate of 36.4 percent). The authors ran a series of binary logistic regression models to test the hypothesized relationships between HR practices and nationality of ownership.FindingsThe authors reveal that a small minority of both types of firm use some practices, such as high compensation contingent on performance and performance review, appraisal and career development. However, domestic firms use some practices, such as extensive training, performance appraisals and performance-related pay significantly less than their multinational counterparts. The authors argue that these differences reflect institutional influences in Pakistan as well as a potential opportunity for local firms to change their HRM practices. In other areas, such as recruitment and employee involvement, there are no differences between the two groups.Originality/valueThe authors deepen our understanding of the types of HR practices that local companies in an emerging economy are likely to adopt as well as those that they are unlikely to adopt. Existing research has tended to downplay HRM in Pakistan and the different use of individual HRM practices among MNC subsidiaries and local firms. This research reveals that some companies in Pakistan have sophisticated HRM practices in place in some areas; however, MNC subsidiaries make greater use of some HR practices, reflecting different cultural norms between the two groups.

High Performance Work System and Export Performance

This paper aims to propose a conceptual framework about the relationship between high performance work system practices and export performance. HPWS is expected to play a crucial role in organizational success. Thus, this paper proposed a framework for studying the relationship among four dimensions of HPWS such as recruitment and selection, performance management, compensation and rewards and training and development and export performance in Pakistan’s textile sector. Moreover, entrepreneurial orientation acts as the mediating factor among these variables. This framework is developed based on extensive literature and this study is expected to contribute towards knowledge by delivering insights and pointing out ways to increase country’s export performance. Specifically, this research will benefit Pakistan’s textile sector in formulating strategies to increase manufacturer’s export performance.

When do bundles of high performance work systems reduce employee absenteeism? The moderating role of workload

Although Human Resource Management (HRM) scholars have frequently called for a more contextualized approach to HRM, there is still a limited understanding of how the HRM-employee outcome relationship varies under different conditions. This study tests a model that positions workload as a moderator of the relationship between perceived skill-, motivation- and opportunity-enhancing High Performance Work Systems (HPWS) and employee absenteeism. Using data from 194 employees, the results revealed that under high workloads, perceived opportunity-enhancing HPWS practices reduce absenteeism. However, workload did not influence the relationship between skill-enhancing and motivation-enhancing HPWS and absenteeism. The findings highlight that demanding work conditions in the form of a high workload can alter the relationship between HRM and key employee outcomes in such a way that the benefits of some HR practices become particularly useful when employees really need them. In addition, the findings underline the need to focus on the differential effects of skill-, motivation- and opportunity-enhancing HPWS practices for a richer understanding of the HRM–employee outcome relationship.

High Performance Work Systems in the Service Sector: A Literature Review

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

Implementing HPWS among the indigenous companies in China

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.