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HIGH PERFORMANCE WORK SYSTEMS, ORGANIZATIONAL CULTURE AND FIRM EFFECTIVENESS

The HRM literature emphasises the importance of people in enhancing firm performance or even creating competitive advantage. This study provides further evidence on the link between so‐called high performance work systems and firm performance and relates these to organizational culture. In total 175 organizations from different sectors in the Netherlands participated. Senior HR managers were questioned on HRM practices and chief executives on organizational culture. (Hartog, 24 August 2006)

Three different groups of personnel are distinguished in the measures: core employees, managers and specialist professional staff. One high performance work system could be distinguished, consisting of a combination of practices with an emphasis on employee development, strict selection and providing an overarching goal or direction. Results of regression analyses controlling for sector, firm size and age show a significant impact of this system on several performance outcomes (perceived economic outcomes, beyond contract and absenteeism), as well as positive relationships with three organizational culture orientations.
 Practices that are not part of this combination also show some positive (but limited) links with culture and outcomes. The results indicate that some HRM practices impact organizational performance through their influence on employee competencies. The study further revealed that employee competencies mediate the relationship between HRM practices and organizational performance. (Otoo, 19 February 2018)


The results indicate that some HRD practices impact organizational effectiveness through their influence on employee competencies. The study further revealed that employee competencies mediate the relationship between HRD practices and organizational effectiveness.

 

References

Hartog, D. N. (24 August 2006). High performance work systems, organisational culture. https://doi.org/10.1111/j.1748-8583.2004.tb00112.x.
Otoo, F. N. (19 February 2018). Human resource management (HRM) practices and organizational performance. EMERALD INSIGHT.




Comments

  1. Malaka Gunawardana11 June 2019 at 08:36

    High Performance Work Systems are becoming a most important factor in modern business and also better recruiting process is a must to develop a high performance workforce in an organization. Good review

    ReplyDelete

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