Crossing the level of employee's performance: HPWS,affective commitment,human capital,and employee job performance in professional service organizations

Extant research on high-performance work systems (HPWS) has primarily examined the effects of HPWS on firm-level performance from a macro perspective and mostly in manufacturing settings. This study extends this literature by integrating social exchange theory and human capital theory perspectives to examine how shop-level HPWS affect employee individual performance in the service context, especially focusing on the small-scale professional service organizations. Data collected from multiple sources included 97 hair salon shop owners and 284 hairdressers as well as objective job performance measured in terms of each hairdresser's average monthly service sales. Results from cross-level analysis indicated that the relationship between shop-level HPWS and employee job performance was mediated by employee affective commitment and their human capital. These findings shed new light on the mechanisms through which HPWS impact employee outcomes and serve to bridge between macro and micro perspectives of human resource management.     

Designing and implementing high-performance work systems: Insights from consulting practice for academic researchers

The central subject of the strategic HRM field is the relationship between HRM practices and firm performance and the focal construct is the high-performance work system (HPWS). The first two of the authors began their careers in the early 1970s as professors in a business school management department but decided in the late 1980s to leave academe and devote full time to their organizational design consulting practice. For over three decades they led large-scale HPWS design and implementation projects for several dozen companies in not only manufacturing plants but also banks, airlines, hospitals, and corporate headquarters. With the help of the third author, a comparison is made of the HPWS as discussed and conceptualized in the academic literature and the HPWS designed and implemented in practice. The academic version has little resemblance to the real-world version, pointing to a quite large research-practice gap that appears to widen over time. The remainder of the paper describes in more detail the socio-technical design principles used to construct an HPWS, the major challenges and pitfalls in successful implementation and sustainability, and a short case study of an actual HPWS project. If academics want to do useful, relevant research on HPWS, they need to engage with the real thing in the field.     

The impact of diversity and equality management on firm performance: Beyond high performance work systems

This article demonstrates that a diversity and equality management system (DEMS) contributes to firm performance beyond the effects of a traditional high‐performance work system (HPWS), which consists of bundles of work practices and policies used extensively in high‐performing firms. A DEMS typically includes diversity training and monitoring recruitment, pay, and promotion across minority or other disadvantaged groups. Our analysis of quantitative data from service and manufacturing organizations in Ireland confirms that HPWS practices are associated with positive business performance and finds specifically that DEMS practices are positively associated with higher labor productivity and workforce innovation and lower voluntary employee turnover. © 2010 Wiley Periodicals, Inc.     

Operations effectiveness for a successful implementation of CIM

This paper looks at the important question of whether Computer Integrated Manufacturing (CIM) is a concept applicable to all manufacturing concerns. This question arises in the context of more than 15 years of struggle with CIM as a very promising strategic weapon.After the introduction to the paper, the first section discusses the role of CIM as a strategic weapon available for the operations function of any manufacturer. Although this is in fact not the case with many, perhaps most, US companies, this concept presumes that operations is considered a strategic function by the company. The benefits of using CIM as a strategic operations weapon are outlined, with particular reference to the global environment that actually necessitates its use. Thus, the importance of CIM as a response to environmental threats is emphasized.The next section examines the factors that are critical to the successful implementation of CIM, based on the observation that not every firm that tried CIM was successful. Even more disconcerting was the fact that, while effective firms can benefit from CIM, firms that are not effective to start with can actually suffer under CIM. The next section briefly summarizes four stages of operations effectiveness and examines the main supposition of this paper: the successful implementation of CIM requires that firms be in Stage 3 or 4 of operations effectiveness. In particular, many of the factors considered to be critical for success with CIM are only present in Stage 3 and Stage 4 firms and noticeably absent in Stage 1 and Stage 2 firms.In conclusion, the paper notes that all factors seem to indicate that the Stages of Operations Effectiveness (SOE) concept may provide an important guide as to which manufacturing concerns may benefit from CIM, and which firms should get control of other operational aspects of their business before trying CIM.     

计算机集成制造(CIM)——我国制造业现代化的必由之路

计算机集成制造(CIM)是上世纪八十年代以来工业化国家为实现制造业的现代化倾全力开发的重点项目。本文简要介绍了CIM的内涵、发展概况、存在问题及解决对策等,并着重指出他是我国制造业步入世界先进行列,提高竞争能力,实现企业现代化的必由之路。     

How Top Management HR Beliefs and Values Affect High‐Performance Work System Adoption and Implementation Effectiveness

What explains why high‐performance work systems (HPWSs) are not adopted more widely by firms that would appear to benefit economically by adopting them? We address this question by drawing on the upper‐echelons perspective to consider the role of the top managers’ beliefs concerning the financial payoffs from investments in HR (“HR cause‐effect belief”) as well as their employee‐centered value‐based beliefs (labeled “HPWS values”). We propose a conceptual model in which top management HPWS values moderate the relationship between HR cause‐effect beliefs and the intensity of HPWS programs reported by managers as well as the relationship between HPWS programs and employees’ perceptions of implemented HPWS practices. We test our model using a unique multisource data set collected from 120 hotel franchisees that includes survey responses from 648 managers and 1,293 employees. We find that firms’ ability to translate top managers’ cause‐effect beliefs about the economic value of HR investments into adoption of HPWS programs, as well as their ability to effectively implement these HPWS programs, is significantly affected by the value‐based HR beliefs held by top managers. © 2014 Wiley Periodicals, Inc.     

Mapping the relationships between high-performance work systems,employee resilience and engagement: a study of the banking industry in China

Abstract

There is now growing interest in employee resilience in the organizational context and its contribution to organizational performance. However, little is known the extent to which high-performance work systems (HPWS) contributes towards enhancing employee’s resilience as well as their levels of engagement. This study examines the relationships among HPWS, employee resilience and engagement, using a sample of 2040 employees in the Chinese banking industry. Drawing on the job demands-resources model and strategic/high-performance human resource management theory, we develop three hypotheses to test the relationship between HPWS and employee resilience, resilience and employee engagement, and the mediating effect of resilience on the relationship between HPWS and engagement. All hypotheses are supported and suggest that HPWS can be used as a job resource to positively affect resilience and subsequently employee engagement. The key message of the paper is that employee resilience can be viewed as a set of skills and attributes that can be developed through the effective use of HPWS to benefit both individuals and the organization.     

A multilevel examination of high‐performance work systems and unit‐level organisational ambidexterity

This paper examines the process linking high‐performance work systems (HPWS) and organisational ambidexterity both at the unit and firm level of analyses by integrating strategic HRM, human capital and social capital perspectives. Multisource and multilevel data from 2,887 employees and 536 managers of 58 banks was collected. Results revealed that firm‐level HPWS were positively related to unit‐level employee human capital. Unit‐level employee human capital partially mediated the relationship between firm‐level HPWS and unit organisational ambidexterity. Furthermore, firm‐level social climate moderated the effect of firm‐level HPWS on unit organisational ambidexterity through unit‐level employee human capital. This paper contributes to HPWS and ambidexterity research by revealing the impacts of firm‐level HPWS and mediating mechanisms, as well as identifying boundary conditions for pursuing unit‐level organisational ambidexterity.     

High-performance work system and intention to leave: a mediation model

To address recent calls in the literature for additional work on the role of high-performance work systems (HPWS) in determining individual outcomes, this study examines the relationship between employees' perceptions of HPWS and intention to leave, as well as the possible mediating role of job satisfaction, procedural justice and intrinsic motivation in this relationship. The model is tested with EQS 6.1, on a sample of 155 engineers from 19 different companies and industries. Results indicate that HPWS is associated positively with job satisfaction, procedural justice and intrinsic motivation. Results also show that only job satisfaction mediates the relationship between HPWS and engineers' intention to leave, whereas procedural justice and intrinsic motivation mediate the relationship between HPWS and job satisfaction.     

Guanxi and high performance work systems in China: evidence from a state-owned enterprise

Abstract

Existing high performance work system (HPWS) research has rarely considered cultural influences. This study investigates the relationships between guanxi, HPWS and employee attitudes in China. A data-set consisting of 226 employees in a Chinese state-owned enterprise in the railway sector was used to test the hypotheses. Using structural equation modelling as an analytical tool, we found that guanxi was positively related to HPWS and trust. Similar to research in the Western context, HPWS was found to be positively related to trust and job satisfaction. Moreover, the results also revealed that HPWS mediated between guanxi and both trust and job satisfaction. Theoretical and practical implications are both discussed.     

High‐performance work systems and workplace performance in small,medium‐sized and large firms

This article draws on the Organisational Growth and Development (OGD) life cycle model to explore the relationship between high‐performance work systems (HPWS) and performance in firms of different size, thereby extending understanding of congruence or ‘best fit’ theory within strategic HRM debates. With reference to management control theory, economies of scale and the availability of specialist managerial skills, the article hypothesises that while an HPWS–performance relationship might exist in small, medium‐sized and large firms, the relationship will be stronger in large firms than in both small and medium‐sized firms, and stronger in medium‐sized firms than in small firms. Analysis of data from the British Workplace Employment Relations Survey demonstrates, however, that there is no association between HPWS and workplace performance in medium‐sized firms, in contrast to the positive relationship between HPWS and performance found in large firms and between HPWS and labour productivity in small firms.     

Power shifts in organizations: the role of high-performance work systems

This paper analyses the effects of high-performance work systems (HPWS) on the rent appropriation of employees and shareholders in firms from the viewpoint of appropriation theory. Applying a meta-analytical approach I test the hypothesis that HPWS shift the balance of power between stakeholder groups in an organization, favouring employees over other stakeholders. This hypothesis is confirmed. However, the overall results of HPWS are positive for both stakeholder groups, as HPWS also increase firm value creation. My study also emphasizes the need to decompose the construct ‘firm performance’ into value creation and value distribution among stakeholder groups. Directions for future research and recommendations for management practice conclude the paper.     

Exploring the Complementarities Within High‐Performance Work Systems: A Set‐Theoretic Analysis of UK Firms

High‐performance work systems (HPWS) are important conceptual instruments in the human resource management literature. Yet our current understanding of the complementarities within HPWS remains limited for two reasons: First, the dominant theoretical perspectives on HPWS provide a landscape of theoretical possibilities rather than an understanding of different possibilities through which HPWS generate positive effects on performance; and second, the literature on HPWS merely proposes several seemingly equally important HR practices. This article explores the internal nature of HPWS by integrating a configurational perspective of core, peripheral, and nonessential HR practices with a typology of complementarities. Analyzing 530 UK‐based firms using fuzzy set qualitative comparative analysis (fsQCA), I identify four frequently implemented HPWS consistently associated with high labor productivity. The complementarities within all HPWS combine pairs of core HR practices with sets of peripheral HR practices. Moreover, the complementarities within three of the four HPWS rely on firms’ avoidance of implementing certain HR practices. The results suggest that the synergies of HPWS arise from efficient complementarities and virtuous overlaps, and reveal the significance of achieving high performance by not implementing HR practices. This article thus advances a new perspective on HPWSs, highlighting the challenges involved in successfully designing HPWS. © 2016 Wiley Periodicals, Inc.     

High Performance Work Systems for Service Quality: Boundary Conditions and Influence Processes

Drawing on agency theory and the resource‐based view, this study examines the moderating effect of hotel ownership structure on the relationship between high‐performance work systems for service quality (HPWS‐SQs) and service performance as well as the curvilinear relationship between hotel service performance and hotel profitability. Results from surveys and archival data of 126 hotels showed that when hotels were owned and operated by brands, HPWS‐SQs had a positive effect on service performance. Moderated mediation analyses showed that service performance as a mediator accounted for the moderating effect of ownership and management structure on the relationship between HPWS‐SQs and hotel profitability. In addition, service performance demonstrated an inverted U‐shaped relationship with hotel profitability. These findings advanced the understanding of the boundary conditions and influence processes of HPWS‐SQs on financial performance in service settings. © 2016 Wiley Periodicals, Inc.     

High-performance work systems and firms' operational performance: the moderating role of technology

This paper analyses the moderating effect of technology on the potential impact of high-performance work systems (HPWS) on firms' operational performance. The paper distinguishes between production technology and the technological intensity of the industry. This potential effect is analysed in a sample of 965 Spanish manufacturing firms. Results support the moderating role of the technological intensity of the industry, while qualifying the hypothesized moderating effect of production technology.     

High-performance work systems and organizational performance: testing the mediation role of employee outcomes using evidence from PR China

This research investigates the relationship between high-performance work systems (HPWS) and organizational performance, and the mediating effect of employee outcomes. The paper is based on a sample of 168 firms of six ownership types and in various business sectors operating in China. The results of data analysis support the hypotheses. Organizational performance is positively predicted by HPWS and employee outcomes, and employee outcomes positively mediate the relationship between HPWS and organizational performance. This paper supports the theory that HPWS positively impacts organizational performance and explains the mechanisms through which HPWS enhances organizational performance. It also responds to the long-standing call for stressing the importance of employee-related factors in the HRM–performance linkage.     

The role of employee HR attributions in the relationship between high‐performance work systems and employee outcomes

Although research has shown that the use of high‐performance work systems (HPWS) is associated with employee outcomes, our knowledge of the meanings employees attach to HPWS systems and how these shape employee outcomes is still limited. This study examines the signalling impact of enacted HPWS on HR well‐being and HR performance attributions, and how these influence happiness‐ and health‐related outcomes. Using multilevel data (1,065 employees nested within 150 work units) obtained from multiple sources (line managers and employees), our results show that coverage of HPWS was positively associated with the two HR attributions. In addition, HR well‐being attributions were associated with higher levels of commitment and lower levels of job strain. HR performance attributions were associated with higher levels of job strain. The findings of this study highlight the importance of taking into account how employees attach meaning to enacted HPWS in order to predict employee outcomes.     

The relationship between ‘high-performance work practices’ and employee attitudes: an investigation of additive and interaction effects

In order to improve our understanding of mediating variables inside the ‘black box’ of the firm's labour management, this paper examines the relationship between high-performance work system (HPWS) practices and employee attitudes. Using a randomly selected, national population sample, clear evidence was found for a positive relationship between HPWS practices and the attitudinal variables of job satisfaction, trust in management, and organizational commitment, implying that HPWS can provide win-win outcomes for employees and employers. However, the study also tests – from an employee perspective – the ‘complementarities thesis’ and finds negative interaction effects among HPWS practices. This strengthens the argument that there are likely to be limits to the positive outcomes of HPWSs for employees. Evidence of sequencing in the employee attitudinal responses to HPWSs was also found, with job satisfaction as the key mediating variable.     

High‐Performance Work Systems in Professional Service Firms: Examining the Practices‐Resources‐Uses‐Performance Linkage

Professional service firms (PSFs) play an important role in the knowledge‐based economy. Their success is highly dependent on their people, the knowledge resources they possess, and how they use these resources. However, how to systematically manage human resources to attain high performance is not fully understood. This study addresses this issue by investigating the linkage mechanisms through which high‐performance work systems (HPWS) influence the performance of PSFs. We integrate resource‐based and dynamic capability theories in order to identify and investigate two intervening mechanisms that link HR practices to firm performance. The first mechanism is the intellectual capital resources comprising the human, social, and organizational capital that HPWS create. The second mechanism is the uses to which both HPWS and resources can be applied, operationalized as organizational ambidexterity, the simultaneous exploitation of existing knowledge and exploration of new knowledge. These mechanisms are hypothesized to link HPWS to firm performance in the form of a practices‐resources‐uses‐performance linkage model. Results from a longitudinal study of 93 accounting firms support this linkage model. © 2015 Wiley Periodicals, Inc.     

Fostering mutual gains: Explaining the influence of high‐performance work systems and leadership on psychological health and service performance

Despite the growing importance of sustainable management of human resources, human resource management and leadership research on mutuality in the employment relationship has proceeded in a parallel fashion. Drawing on self‐determination theory, this study proposes an integrative model of human growth by addressing two interrelated questions: (a) how and why experienced service‐oriented high‐performance work systems (HPWS) and unit service leadership relate to psychological health and service performance and (b) whether thriving at work and psychological health serially mediate the relationships between the two contextual antecedents and service performance. Our findings revealed that experienced service‐oriented HPWS and unit service leadership related to service performance but indirectly through thriving at work. However, experienced service‐oriented HPWS but not unit service leadership related to psychological health through thriving at work. Furthermore, thriving at work and psychological health serially mediated the relationship between experienced service‐oriented HPWS (but not unit service leadership) and service performance.