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.     

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.     

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.     

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.     

Collectivism versus individualism in Dutch employment relations

From a very centralistic and collectivistic tradition after World War Two, Dutch employment relations now show a trend towards radical decentralisation and individualisation. What might be the consequences of this trend for labour relations? Do developments still fit within a movement towards ‘organised decentralisation’ or will the existing system of labour relations be hollowed out and destroyed? And what will be the consequences for ER management at company level? We present empirical data on how companies deal with their decentralised and individualised employment relations. It appears that, in the main areas such as labour contracts, working time arrangements, reward systems and development plans, decentralisation and individualisation are taking place. It has also become clear that management as well as workers support this and that a new form of negotiation between them is developing at workplace level, resulting in what we call ‘third contracts’ that are additional to the initial labour contract and the collective agreement. Our results also highlight the pragmatic way in which companies deal with these decentralised and individualised employment relations, which, nevertheless, remain linked to the national and collective levels of bargaining. Within the multilevel system of Dutch employment relations a new balance between collectivism and individualism is emerging.     

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.     

Workplace innovation,employment relations and HRM: two electronics companies in South Korea

Analysing two electronics companies (unionized LG Electronics and non-union Samsung SDI) in Korea, the present paper investigates the impact of union status on workplace innovations and the effects of workplace innovations on organizational performance. Both case firms are considered highly innovative, model companies in terms of their sophisticated human resource management (HRM) and cooperative employment relations (ER). We first provide a conceptual framework and generate three propositions. The framework is composed of three main components: input, organizational system and output. The major findings include: (1) the adoption of high performance work organizations (HPWO) is highly dependent upon top management and union/employee representatives; (2) the two case firms adopted two different production modes (a team production mode in LG Electronics and a lean production mode in Samsung SDI); and (3) alignment among organizational design and work processes, ER systems and HRM systems would lead to high organizational performance. We also discuss the transferability of HPWO to other cultural settings in a universalism-contingency context.     

The meaning of work,employment relations,and strategic human resources management in Israel

The paper deals with the meaning of work, employment relations, and strategic human resources management. First it shows that Israeli workers have become more individualistic and materialistic, and less collectively oriented, as instrumental achievements outweigh contributions to society. These issues apparently influence employment relations and organizational policies. Next, it deals with the corporatist employment relations system, based on tri-partite collective bargaining among employees, employers, and the state. During various times, the relative balance of power among the three parties swayed considerably, according to major political, economic and social events taking place in society. The final section on strategic human resources management focuses on the transition of Israel's Human Resources profession, from the traditional HR role to the new Strategic Human Resource Management role. These three spheres have gone through some significant changes in the last several decades, perhaps not parallel to most industrial nations.     

The decentralisation of employment relations in the British public sector

The aim of this article is to investigate differences between the British public and private sectors in terms of the decentralisation of employment relations. Drawing on data from the 1998 Workplace Employee Relations Survey, the article arrives at three main conclusions. First, the analysis reveals that while local‐level managers in both sectors have similar levels of responsibility for employment relations issues, those in the public sector are, on the whole, significantly less likely to be able to exercise authority. Second, the results indicate some marked variations in practice within the public sector, with managers in education having the greatest level of authority. Finally, the article explores the extent to which differences in local‐level authority between the public and private sectors can be explained by higher‐level collective bargaining, and the presence of higher‐level personnel specialists. These factors have only a partial influence, and do not fully explain why local‐level employee relations managers in some areas (notably health) are less able to exercise authority than their counterparts in the private sector.     

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.     

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.     

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.     

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 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.     

From the British worker question to the impact of HRM: understanding the relationship between employment relations and economic performance

The long‐running UK debate over the relationship between employment relations and economic performance is examined. Its four phases are identified as: British worker question, British economic miracle, ‘what do unions do?’ and Human Resource Management (HRM) and performance. Change in the terms of debate is observed. Important common threads are identified. Recommendations for future research are made.     

Organised decentralisation,uneven outcomes: employment relations in the Italian public health sector

This article looks at the difficulties of adapting a very centralised employment relations system in a country characterised by a deep regional economic divide. In particular, by looking at the Italian public health sector, it is contended that organised decentralisation of employment relations implemented against wide regional differences led to uneven outcomes in second‐level (organisation) collective bargaining.     

Corporate governance and workplace employment relations: the potential of WERS 2004

The relationship between corporate governance and workplace employment relations is reviewed drawing on the Workplace Employment Relations Survey 2004. The paper reviews recent analysis and policy developments, and then considers the contribution of earlier WERS‐based research on this topic. The innovations in WERS 2004 are outlined, and it is suggested these provide several opportunities for further analysis in this area. The paper then presents an illustrative example of the use of WERS 2004, and concludes with recommendations for further changes in future WERS surveys.     

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.     

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.