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.     

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.     

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.     

Computer-integrated manufacturing and high performance work system: the case of Taiwan

This study investigates the relationships between computer-integrated manufacturing (CIM) and high-performance work system (HPWS) that can arguably improve human capital in the firm and enhance the effectiveness of these advanced manufacturing technologies. Our data were drawn from two surveys of Taiwanese manufacturing establishments in 1998 and 2005. Results showed that high-degree CIM was positively associated with the practices of the each HR practice and HPWS, including high pay level, rigorous selection, extensive training, developmental performance management, performance- and competency- based rewards as well as employee stock ownership.     

Research and theory on high‐performance work systems: progressing the high‐involvement stream

The notion of a high‐performance work system (HPWS) constitutes a claim that there exists a system of work practices for core workers in an organisation that leads in some way to superior performance. In this article, we dissect this fuzzy notion and examine its companion terminology: high‐involvement work systems and high‐commitment management. We argue that a focus on the high‐involvement stream usefully grounds HPWS studies in an important area of workplace change in the current context and takes us away from eclectic and contentious selections of ‘best practices’. We review research models and findings in this stream. The path to better research lies in examining the underpinning processes experienced by workers when management seeks to pursue high‐involvement systems, and charting their links to employee and operational outcomes.     

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.     

Pulling in different directions? Exploring the relationship between vertical pay dispersion and high‐performance work systems

Vertical pay dispersion (VPD), a hierarchical pay structure used to motivate employees, has traditionally been studied separately from high‐performance work systems (HPWSs). As a component of HPWSs, incentive‐based compensation schemes focus on employee‐ or team‐level incentives. However, the influence of the simultaneous utilization of VPD and HPWS on performance remains understudied. This study addresses the question of whether these approaches to managing human capital serve as complements or substitutes to one another. VPD and HPWS are argued to substitute for one another with respect to motivation‐ and skill‐enhancing practices. The opposite notion is true in regard to opportunity‐enhancing HPWSs, which serve to amplify the effectiveness of VPD. In a multisource, longitudinal sample of South Korean firms, the hypothesized predictions are supported.     

High performance work systems and organizational performance: an empirical study of Taiwan's semiconductor design firms

This paper presents a study examining the relationship between high performance work systems (HPWS) and organizational performance in Taiwan's semiconductor design industry. The hypotheses are tested by matching and analysing data collected from field interviews with 21 HR managers and surveys of 21 senior operations managers and 1,129 employees. The results of the statistical analysis demonstrate that the effective use of employee empowerment practices is positively related to organizational performance.     

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.     

Alternative balanced scorecards built from paradigm models in strategic HRM and employment/industrial relations and used to measure the state of employment relations and HR system performance across U.S. workplaces

This paper constructs alternative balanced scorecards based on high‐performance work system (HPWS) and employment relations system (ERS) models. The models are depicted and compared in diagrams and used as framework skeletons for building separate HPWS and ERS scorecards, intended to provide a detailed data picture of the operational health and performance of an organization's employment/HR system and its operations, processes, and inputs/outputs. The scorecards are filled in with nationally representative data from 2,000+ U.S. workplaces using more than 50 employment/HR indicators, as reported by separate panels of managers and employees. The indicators for each workplace are aggregated into an overall HR/employment system score, ranked from low‐to‐high, and graphed as frequency distributions. These distributions provide a unique snapshot picture of the mean and dispersion of the state of employment relations and HR system performance for companies across the United State. They also reveal that “models matter” since the HPWS and ERS scorecards provide distinctly different evaluation assessments.     

How and when matter: Exploring the interaction effects of high‐performance work systems,employee participation,and human capital on organizational innovation

Existing research on the relationship between high‐performance work systems (HPWS) and organizational innovation has paid insufficient attention to the boundary effects of employee participation and human capital. Bridging the human resource management (HRM) and employment relations literature, this study contributes to the contingency view of HRM and China‐specific research by investigating how human capital and employee participation, direct voice mechanism, and corporate governance participation jointly moderate the relationship between HPWS and organizational innovation. We test our three‐way interaction model using a sample of 108 firms and 1,250 employees in China. The results suggest that HPWS are positively associated with organizational innovation when employees with relatively less human capital are coupled with more direct voice mechanism or less corporate governance participation. In contrast, HPWS are negatively related to organizational innovation when employees possessing greater human capital are coupled with more direct voice mechanism. The theoretical and managerial implications and future research directions are discussed.     

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.     

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.     

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.     

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.     

The influence of calculative (“hard”) and collaborative (“soft”) HRM on the layoff‐performance relationship in high performance workplaces

We investigate the effect of employment systems on the layoff‐performance relationship. We construct a typology of two types of HPWS (Calculative or “hard” HRM and Collaborative or “soft” HRM) and two non‐high performance systems (Traditional HRM and Low HRM). We use attribution theory as a framework from which to draw hypotheses. We examine survey responses from two waves of panel data. We employ cluster analysis to identify distinctive configurations of employment practices used in UK workplaces. We use the cluster outcomes as explanatory variables in moderator regression analysis. Following layoffs, we find that Calculative workplaces experience lower subsequent performance than Collaborative workplaces. Over the next five years, Calculative and Collaborative workplaces experience equivalent amounts of performance change but Calculative workplaces fail to make a full recovery.     

Antecedents and Outcomes of Diversity and Equality Management Systems: An Integrated Institutional Agency and Strategic Human Resource Management Approach

This study examines the development and impact of diversity and equality management systems (DEMS). A national sample of human resource managers from 155 Canadian firms responded to surveys about their firm's diversity and equality management (DEM) practices. Cluster analysis and latent class modeling identified three distinct approaches to DEM: classical disparity DEMS showing limited development of DEM‐related practices, institutional DEMS involving complex selection mechanisms and monitoring of employment statistics, and configurational DEMS linking diversity to business strategy. Hypothesis‐testing analyses indicated that both institutional and configurational DEMS were predicted by coverage by the Canadian employment equity program, federal contractor status, and the presence of a diversity expert on staff. Only configurational DEMS was predicted by inclusion of HRM in developing business strategy. Configurational DEMS positively predicted the employment of workers with disabilities and members of visible minority groups as well as ROA. These findings support the proposition based on strategic human resource management (SHRM) theory that DEM practices should be considered as bundles and that vertical linkage to strategy is important for DEM effectiveness. As such, SHRM theory explains how managers can structure strategic responses to institutional pressures that go beyond requirements to achieve strategic goals. © 2015 Wiley Periodicals, Inc.     

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.     

Social identification: linking high performance work systems,psychological empowerment and patient care

This paper examines the mediating effects of social identification on the relationship between high performance work systems (HPWS) and psychological empowerment and the direct relationship between psychological empowerment and clinician perceptions of quality of patient care. We use structural equation modelling on a sample of 254 health professionals from a large regional hospital in Australia. Results demonstrate, first, a strong effect of HPWS on social identification. Second, social identification mediates the relationship between HPWS and psychological empowerment and, third, psychological empowerment has a strong effect on clinician perceptions of quality of patient care. Implications are drawn for management theory and hospital managers.