High performance work system, HRD climate and organisational performance: an empirical study

2015 ◽  
Vol 39 (3) ◽  
pp. 239-257 ◽  
Author(s):  
Ashutosh Muduli

Purpose – This paper aims to study the relationship between high-performance work system (HPWS) and organizational performance and to examine the role of human resource development (HRD) Climate in mediating the relationship between HPWS and the organizational performance in the context of the power sector of India. Design/methodology/approach – The empirical research paper has been conceptualized on the basis of extensive literature survey and examined through a case-based approach. Data and information collected to examine strength of the proposed hypothesis in the context of a power-based company in India. Findings – Agreeing with most of the research, HPWS is found to be positively related with organizational performance. The result does not agree with the HPWS research conducted in Asian countries. Taking clues from “Black Box” approach, the role of HRD Climate as a mediating factor has been studied. The result proved that HPWS influences organizational performance through a supportive development environment (HRD climate) based on openness, confrontation, trust, authenticity, proaction, autonomy, collaboration and experimentation (OCTAPAC). Research limitations/implications – Designing and implementing HPWS requires the organization to nurture and develop a suitable HRD climate through development of organizational culture based on OCTAPAC. Practical implications – Implications for HRD–HPWS practices such as group-based pay, decentralized participative decisions, self-managed work teams, social and family events, and appraisal based on team goals along with OCTAPAC culture can significantly contribute to the transfer climate by influencing both peer and supervisor. It can significantly contribute to training motivation by influencing both career and job attitudes, and organizational commitment of trainees. Originality/value – The research is unique in its attempt to understand the role HRD climate as intermediating variables to enhance the effectiveness of HPWS. This may add a lot of value in encouraging organizations to establish HRD Climate.

2019 ◽  
Vol 41 (3) ◽  
pp. 241-257
Author(s):  
Xiaoxuan Zhai ◽  
Xiaowen Tian

Purpose The purpose of this paper is to develop a resource-based framework to explain the relationship between high-performance work system (HPWS) and organizational performance (OP) and the moderating role of performance measures. Design/methodology/approach The paper takes a meta-analysis approach, and tests hypotheses against data of 47,741 firms and establishments in 192 studies published by June 2016. Findings The paper finds that HPWS has a greater positive effect on operational than financial performance. Moreover, HPWS influences operational performance more strongly in developing than advanced countries and at the firm level than the establishment level, but such variations are not evident in the effect of HPWS on financial performance. Practical implications The paper suggests that managers should treat human resource management (HRM) practices as a system, and develop HPWS for operational gains which in turn lead to financial gains. Managers need to take different approaches to develop HPWS for high performance depending on the country of origin and the level of organization. Originality/value Based on studies of individual HRM practices, previous meta-analytical studies suggested that the HPWS-OP relationship is invariant across performance measures. Taking HRM practices as integral components of HPWS, this paper extends the resource-based theory to demonstrate that performance measures interact with country of origin and level of analysis to moderate the HPWS-OP relationship.


2017 ◽  
Vol 46 (7) ◽  
pp. 1318-1334 ◽  
Author(s):  
Guiyao Tang ◽  
Bingjie Yu ◽  
Fang Lee Cooke ◽  
Yang Chen

Purpose The purpose of this paper is to examine the underlying mechanism through which high-performance work system (HPWS) influences employee creativity. In addition, this paper aims to examine contingent factors in the relationship between perceived organisational support and employee creativity. Design/methodology/approach The sample of the study included 268 employees and matched supervisors from two pesticide chemical companies in China. Hypotheses were tested with linear regressions. Findings The study shows that HPWS enhances perceived organisational support, which in turn promotes employee creativity. Moreover, the results also indicate that devolved management positively moderates the relationship between perceived organisational support and employee creativity. Research limitations/implications The unique environment of China may limit the generalisability of the findings. Future studies can extend these findings by conducting studies in other societal contexts. Practical implications When trying to inspire employee creativity, organisations need to pay attention to employees’ perception of organisational support. One way of enhancing perceived organisational support is to implement HPWS. In addition, organisations need to encourage devolved management in order to inspire more creative behaviours. Originality/value This is the first study that explores the mediating role of perceived organisational support in the HPWS-employee creativity linkage. In addition, the study provides what is believed to be the first test of the moderating role of devolved management.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ashutosh Muduli ◽  
Gary N. McLean

PurposeBenchmarking research has explored the role of organizational practices and business processes rooted with human capabilities for achieving growth performance. The role of high performance work system as an organizational practice and business process is yet to be studied. Even if studied, no study has been conducted on the role of training transfer climate on high performance work system and organizational performance. The current research aims at examining high performance work system on organizational performance. Further, the study also examine training transfer climate as a mediating variable between HPWS and organizational performance.Design/methodology/approachData collected from 415 executives of a high performance-based power sector company of Gujarat, India. The survey instrument consists of high performance work system, training transfer climate and organizational performance. Confirmatory factor analysis was used for a simultaneous assessment of overall and specific elements of measurement validity and reliability. Structural equation modelling used to test the hypothesized model.FindingsThe result proved the capability of high performance work system to predict organizational performance. Further, the result supports the hypothesis that training transfer climate acts as a mediator between high performance work system and organizational performance.Research limitations/implicationsThe result has important theoretical and managerial implications. Theoretically, the research extends the scope of benchmarking to high performance work system. The managerial implications have been discussed from the training transfer climate perspectives.Originality/valueThe originality of the study lies with proving the role of high performance work system and training transfer climate as an organizational practice and business process within benchmarking research.


2019 ◽  
Vol 7 (2) ◽  
pp. 245-256
Author(s):  
Ramaisa Aqdas ◽  
Nik Ab Halim Nik Abdullah

This paper aims to propose a conceptual framework about the relationship between high performance work system practices and export performance. HPWS is expected to play a crucial role in organizational success. Thus, this paper proposed a framework for studying the relationship among four dimensions of HPWS such as recruitment and selection, performance management, compensation and rewards and training and development and export performance in Pakistan’s textile sector. Moreover, entrepreneurial orientation acts as the mediating factor among these variables. This framework is developed based on extensive literature and this study is expected to contribute towards knowledge by delivering insights and pointing out ways to increase country’s export performance. Specifically, this research will benefit Pakistan’s textile sector in formulating strategies to increase manufacturer’s export performance.


Author(s):  
Rabia Imran ◽  
Tariq Mohammed Salih Atiya

PurposeThe aim of the current research is to examine how job performance is affected by high-performance work system (HPWS) and human capital. Furthermore, the research focuses on exploring the mediating role played by human capital in HPWS and job performance relationship.Design/methodology/approachData was collected from service sector employees. A sample of 400 respondents was selected from the chosen population using purposive sampling.FindingsThe results reveal that HPWS and human capital positively and significantly affect job performance. The impact of HPWS in creating human capital was also supported. The research also hypothesized mediating role played by human capital in HPWS and job performance relationship, and it was partially supported.Originality/valueRecent literature is evident of the relationship between performance and HPWS; however, the mechanism between these variables is still unclear (Demirbag et al., 2014). There is a need of identifying the factors that strengthen this relationship. The current research is an attempt to fill this gap by examining the effect of HPWS on job performance. Furthermore, it explores the role played by human capital in strengthening the connection of HPWS and job performance.


2020 ◽  
Vol 27 (4) ◽  
pp. 1369-1398 ◽  
Author(s):  
Jitendra Pratap Singh ◽  
Pawan Kumar Chand ◽  
Amit Mittal ◽  
Arun Aggarwal

PurposeThe manufacturing industry is presently experiencing technological disruption on a global scale. Consequently, to tackle such disruption, firms are identifying a volatile, uncertain, complex and ambiguous (VUCA) scenario and seeking ways to counter it. Accordingly, this paper aims to investigate the employee performance through assessing organizational citizenship behaviour (OCB) among the shop floor employees of the fast-moving consumer goods (FMCG) industry where a high-performance work system (HPWS) has been implemented.Design/methodology/approachA descriptive research design was used in the study, and 395 shop floor employees working in leading multinational firms, with a minimum global turnover of US$1bn, were interviewed. These manufacturing firms were located in three industrial clusters in the northern part of India.FindingsThe results indicate that HPWS influences OCB. Most of the dimensions of HPWS and OCB were found to be positively associated. The findings also disprove the labour process theory in the context of the study.Practical implicationsThe findings report a broad view of the relationship between HPWS and OCB in the Indian manufacturing context. The study offers the practical insights that HPWS is a universally accepted framework and that organizations should focus on the effective implementation of HPWS in a VUCA scenario, which is in line with past studies. The study also provides future directions for research.Originality/valueThis paper has established the relationship between HPWS and OCB in the manufacturing sector, especially for shop floor employees.


2021 ◽  
Vol 12 ◽  
Author(s):  
Yizhi Wang ◽  
Yi Cao ◽  
Nan Xi ◽  
Huitian Chen

Based on the dynamic capability theory, this research investigated the effect of a high-performance work system on organizational performance, the mediating role of strategic flexibility, and the moderating role of an enterprise’s social network in this relationship. A total of 214 middle and senior managers from 58 Chinese enterprises were invited to participate in this research. The results showed that the high-performance work system is positively correlated with organizational performance and such correlation is partially mediated by strategic flexibility. Results found that the social network of an enterprise negatively moderated the relationship between a high-performance work system and strategic flexibility. However, the social network did not moderate the mediating role of strategic flexibility in high-performance work systems (HPWS) and organizational performance.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mavis Yi-Ching Chen ◽  
Long W. Lam ◽  
Julie N.Y. Zhu

PurposeIn this study, the authors employ an intellectual-capital based view of the firm to examine the relationship between three bundles of human resource development (HRD) practices (i.e. developmental, constructive and collaborative HRD practices), three dimensions of intellectual capital (i.e. human capital, organizational capital and social capital), and organizational performance improvements. Specifically, the authors investigate the mediating role of intellectual capital in the relationship between HRD practices and changes in organizational performance.Design/methodology/approachThe authors randomly distributed questionnaires to 1,000 HR executives of Taiwanese firms to assess the firms' HRD practices and intellectual capital. Firm performance data in terms of return on assets (ROA) were obtained from the Taiwan Economic Journal (TEJ). To test the model, the authors used the longitudinal data over three years from 213 firms in Taiwan.FindingsThe results show that human capital and social capital mediate the relationship between HRD practices (i.e. developmental and collaborative HRD practices) and organizational performance improvements in terms of return-on-assets growth.Originality/valueThis study adds to the empirical evidence regarding whether or not investment in HRD practices can lead to positive changes in financial performance.


2019 ◽  
Vol 5 (2) ◽  
pp. 1
Author(s):  
Kashif Nadeem ◽  
Amir Riaz ◽  
Yasir Iftikhar ◽  
Muhammad Bilal Ahmad ◽  
Waqas Shamshad

High-performance work system (HPWS) has been viewed as black-box over the last decade and there is a need for better understanding of the mechanism through which employee performance can be enhanced significantly. Based on the 371 samples collected from banking, insurance, airline, telecommunication, and hospitality, this study provides empirical evidence that HPWS positively influence the service performance of employees and PsyCap mediates the relationship of high-performance work system and employee service performance, OCB among service sector employees of Pakistan. The implications of this study conclude the findings in detail.


2017 ◽  
Vol 46 (8) ◽  
pp. 1770-1795 ◽  
Author(s):  
Jeevan Jyoti ◽  
Asha Rani

Purpose The purpose of this paper is to explore the high performance work system through ability, motivation and opportunity model (Jiang et al., 2013) and its impact on organisational performance. Further, the mediating role of knowledge management between high performance work system and organisational performance has also been evaluated. Design/methodology/approach Questionnaire technique has been used to collect the data from managers (n=58) and employees (n=246) working in telecommunication organisations in Jammu and Kashmir (North India). Data collected have been validated using the exploratory factor analysis and confirmatory factor analysis. Hypotheses have been tested through structural equation modelling with the help of AMOS and SmartPLS3 softwares. Further, theoretical, managerial and socio-economic implications have also been discussed. Findings The study indicates that high performance work system positively affects organisational performance. Further, knowledge management act as a mediator between high performance work system and organisational performance. Research limitations/implications The study has been conducted only in the private telecommunication sector (Airtel, Aircel, Tata Indicom, Idea, Reliance, Vodafone). Further, the study being limited to telecommunication sector can be extended in other sectors also. Practical implications In order to create superior work system, management should focus on ability-enhancing initiatives such as extensive job training, computer-based training, etc. on regular basis. Employees should be rewarded extrinsically as well as intrinsically to keep them motivated to achieve higher levels of performance. Further, management should empower the employees through decentralisation of authority, participative decision making, etc. Besides this, management should also instil the knowledge culture in the organisation in order to enhance the knowledge capability of the employees. Originality/value This study contributes to the literature by identifying the black box using knowledge management to understand the relationship between high performance work system and organisational performance in the telecommunication sector.


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