An empirical examination of the relationship between skills shortage and firm performance: The role of high-performance work systems

2017 ◽  
Vol 25 (5) ◽  
pp. 695-710
Author(s):  
Amina R. Malik ◽  
Laxmikant Manroop ◽  
Pankaj C. Patel
Keyword(s):  
Firm Performance ◽  
High Performance ◽  
Empirical Examination ◽  
Work Systems ◽  
Research Attention ◽  
High Performance Work Systems ◽  
Skills Shortage ◽  
Skills Shortages ◽  
The Impact ◽  
The Relationship

AbstractThere has been growing scholarly interest in the relationship between high-performance work systems and firm performance. Yet, limited research attention has been given to the impact of high-performance work systems on firm performance during skills shortages. In this study, we empirically examine the influence of high-performance work systems on firm performance in the midst of skills shortages. Results from a study of 211 US firms with 50 or more employees demonstrate that internal skills shortages are not related to firm profitability. Findings further show that the use of high-performance work systems is more detrimental to firm performance for firms when they face an internal skills shortage. These results are discussed and future research directions are offered.

The impact of high-performance work systems on firm performance: The moderating effects of the human resource function’s influence

2015 ◽  
Vol 22 (3) ◽  
pp. 328-348 ◽  
Author(s):  
Dae Yong Jeong ◽  
Myungweon Choi
Keyword(s):  
Firm Performance ◽  
Human Resource ◽  
High Performance ◽  
Moderating Effect ◽  
Moderating Effects ◽  
Work Systems ◽  
High Performance Work Systems ◽  
Hr Function ◽  
The Impact ◽  
The Relationship

AbstractWith data collected from 632 manufacturing firms in South Korea, we investigated (1) the relationship between high-performance work systems (HPWSs) and firm performance, and (2) the moderating effect of the human resource (HR) function’s influence on the relationship between HPWSs and firm performance. Our findings showed the existence of both the main effect of HPWSs, supporting the universalistic perspective, and the moderating effect of the HR function’s influence, supporting the contingency perspective. Based on the findings, we concluded that HPWSs can be regarded as universal or best practices; at the same time, the presence of an influential HR function may intensify the effect of HPWSs on firm performance. This study contributes to the debate over the respective merits of the universalistic and contingency perspectives by showing that the two perspectives are not necessarily incompatible; rather, they can be complementary.

scholarly journals THE IMPACT OF HIGH-PERFORMANCE WORK SYSTEMS ON EMPLOYEE ENGAGEMENT: THE MODERATING ROLE OF ORGANIZATIONAL JUSTICE

2020 ◽  
Vol 10 (4) ◽  
pp. 5-22
Author(s):  
Emmanuel Oppong Peprah ◽  
Keyword(s):  
Organizational Justice ◽  
Employee Engagement ◽  
High Performance ◽  
Moderating Effect ◽  
Professional Service ◽  
Service Firms ◽  
Work Systems ◽  
High Performance Work Systems ◽  
The Impact ◽  
The Relationship

Purpose – This paper investigates the impact that High-Performance Work Systems (HPWS) have on Employee Engagement and the moderating effect of Organizational Justice on this relationship. Research methodology – By the usage of a quantitative research method, data gathered from 251 employees of Professional Service firms are analysed with SPSS. Findings – This study found that there is a positive relationship between HPWS and Employee Engagement. It also found that Organizational Justice moderates the relationship between the two. Research limitations – Data was only gathered at the employee level making the interpretation of HPWS to be how employees perceive it. Hence a further study at the firm level as well as cross-sectional analyses will be needed in the future. Practical implications – Management of firms should avoid a ‘one-size-fits-all’ approach in the administration of HR policies and should rather encourage tailor-made treatment for individual employees of the firm. Unfairness is encouraged if the firm is after employee engagement. Originality/Value – This study is one of the first to investigate the moderating effect of organizational justice on the relationship between HPWS and employee engagement and the first to advice firm managers to be unfair in their dealings with individual employees

Founding-Family Ownership and Firm Performance

2009 ◽  
Vol 22 (4) ◽  
pp. 319-332 ◽  
Author(s):  
Chiung-Wen Tsao ◽  
Shyh-Jer Chen ◽  
Chiou-Shiu Lin ◽  
William Hyde
Keyword(s):  
Firm Performance ◽  
High Performance ◽  
Family Ownership ◽  
Work Systems ◽  
Public Firms ◽  
High Performance Work Systems ◽  
Founding Family ◽  
Low Performance ◽  
The Relationship

The controversial findings of both high and low performance for family-controlled public firms offer a unique context in which to study the moderating role of high-performance work systems (HPWS) on founding-family ownership effects. In a sample of Taiwan-based public firms, founding-family ownership was found not to be associated with firm performance. However, when the level of HPWS facing family ownership was accounted for, the results showed that the relationship between founding-family ownership and firm performance is significantly negative for companies with lower levels of HPWS but is significantly positive for companies with higher levels of HPWS.

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

2010 ◽  
Vol 49 (6) ◽  
pp. 977-998 ◽  
Author(s):  
Claire Armstrong ◽  
Patrick C. Flood ◽  
James P. Guthrie ◽  
Wenchuan Liu ◽  
Sarah MacCurtain ◽  
...  
Keyword(s):  
Firm Performance ◽  
High Performance ◽  
Work Systems ◽  
High Performance Work Systems ◽  
The Impact

Indian study shows high-performance work systems (HPWS) mediate the relationship between business strategy and employees’ intention to leave

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Business Strategy ◽  
Cost Reduction ◽  
High Performance ◽  
Intention To Leave ◽  
Business Strategies ◽  
Work Systems ◽  
Content Type ◽  
High Performance Work Systems ◽  
Mediating Role ◽  
The Relationship

Purpose This paper examines the relationship between business strategies and employees’ intention to leave (ITL), through the mediating role of high-performance work system (HPWS). Design/methodology/approach To test their hypotheses, the authors used self-administered questionnaires. They drew up a list of 600 organizations of different nature and structure operating in India that were listed by the Federation of Indian Chambers and Industry. They approved 192 organizations and sent the surveys to 960 executives. They aimed to receive a minimum of one response from an HR executive and two from non-HR executives from each one. In the end, they received 572 useable responses. Findings The study found that high-performance work systems (HPWS) mediate the relationship between business strategy and employees’ intention to leave (ITL). The two effective approaches were “quality management” and “innovation strategy”, both of which reinforced the adoption of HPWS. But a third approach, a “cost-reduction strategy”, was not shown to be positively correlated with HPWS. Another important finding was that the influence on ITL did not vary across the types, or ownership structures, of the firms. Originality/value The data has lessons for HR departments. First, it shows it is advantageous for firms hoping to retain more employees to invest in HPWS that are consistent with the values of their organizations. A second practical finding is that firms need to take into account the Indian context. A third lesson is HR practitioners should make strong efforts to communicate the goals of the HPWS to employees The study also shows firms adopting cost-reduction strategies should focus more on treating employees as resources.

The effect of management and employee perspectives of high-performance work systems on employees’ discretionary behaviour

2016 ◽  
Vol 45 (1) ◽  
pp. 121-141 ◽  
Author(s):  
Unai Elorza ◽  
Christopher Harris ◽  
Aitor Aritzeta ◽  
Nekane Balluerka
Keyword(s):  
Structural Equation ◽  
High Performance ◽  
Manufacturing Companies ◽  
Work Systems ◽  
Content Type ◽  
Organizational Contexts ◽  
Individual Level ◽  
High Performance Work Systems ◽  
Two Samples ◽  
The Relationship

Purpose – The purpose of this paper is to understand how management and employee perspectives of high-performance work systems (HPWS) relate to employee discretionary behaviour. In addition, the paper examines to what extent the relationship between employees’ perception of the HPWS and discretionary behaviour varies among different organizations/groups. Design/methodology/approach – Two samples were used in the study. The first sample included data from 51 managers and 1,023 employees from 26 manufacturing companies. The second sample included 52 managers and 6,382 employees from 42 manufacturing companies. Findings – The study shows that employee rated HPWS mediates the relationship between management rated HPWS and individual-level discretionary behaviour. Moreover, results showed that the effect of employee rated HPWS on discretionary behaviour varies among different organizations/groups. Practical implications – Results show that employee perceptions of the HPWS more strongly predict employees’ discretionary behaviour than management rated HPWS. Moreover, it shows that employees’ perceptions of the same HPWS, but operating in different organizational contexts exhibit different levels of discretionary behaviour. Originality/value – The study differentiates between management and employee perspectives of the HPWS. It also examines the variability of the relationship between HPWS and discretionary behaviour. Multilevel structural equation modelling is used to test the hypotheses.

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

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anastasia A. Katou
Keyword(s):  
Human Resources ◽  
Organizational Performance ◽  
Structural Equation ◽  
High Performance ◽  
Behavioural Flexibility ◽  
Work Systems ◽  
Content Type ◽  
High Performance Work Systems ◽  
Functional Flexibility ◽  
The Impact

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.

HIGH-PERFORMANCE WORK SYSTEMS, ENTREPRENEURIAL ORIENTATION, AND INNOVATION STRATEGY IN DEVELOPING COUNTRIES

2021 ◽  
Author(s):  
MOHSEN SHAHRIARI ◽  
MARYAM MAHMOUDI-MESINEH
Keyword(s):  
Developing Countries ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
High Performance ◽  
Innovation Strategy ◽  
Work Systems ◽  
High Performance Work Systems ◽  
Knowledge Based ◽  
Statistical Sample ◽  
The Impact

Innovation strategy has become an important recent challenge in today’s competitive conditions of developing countries. In this paper, the impact of high-performance work systems (HPWSs) on innovation strategy of knowledge-based enterprises is examined, considering the mediating role of entrepreneurial orientation. The statistical sample of study includes 180 managers and employees of Iranian knowledge-based companies. Data were collected using standard questionnaire, and the structural equation method was used for data analysis. The results showed that HPWSs have a positive and significant impact on innovation strategy of knowledge-based companies and about 75% of the total effect of the HPWS on innovation strategy is explained indirectly by the mediating variable of entrepreneurial orientation.

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