The Extent Of High Performance Work Practices Business Essay Example
The Extent Of High Performance Work Practices Business Essay Example

The Extent Of High Performance Work Practices Business Essay Example

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  • Pages: 11 (2874 words)
  • Published: August 25, 2017
  • Type: Case Study
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The growth of an organization is closely tied to the development of its human resources, so it is vital to comprehend management issues and their effect on improving performance in today's fast-paced business environment. To effectively adapt to constant changes and ensure optimal performance, staying updated is essential for management. This essay seeks to analyze the successful implementation of high-performance work practices (HPWPs) within any organization. It begins by defining HPWP and then explores the actions that can be taken to improve employee performance and achieve the strategic objectives of the organization.

HPWP, or high-performance work practices, lacks a universally agreed definition but is characterized by three main features. These features involve employing practices that are advantageous for both employees and employers, valuing employees as valuable assets, and integrating various practices to maximize overall benefits. Huselid (1995) identifies three essential practic

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es for successful HPWP implementation: thorough recruitment and selection processes, incentivized compensation systems, and extensive employee engagement and training programs. In current times, the prosperity of businesses heavily relies on effective recruitment strategies and enhancing employee performance. Organizations must prioritize skilled and qualified recruitment in order to effectively leverage high-performance work practices.

It is crucial for a company to hire top talent from the beginning as these individuals can become valuable assets. The ability to recruit skilled workers is essential for success in a competitive market and should be approached carefully. Recruitment involves finding and acquiring qualified candidates, allowing the organization to choose the most suitable individuals for their job needs (Carrell, R. et al 1995). Effective recruitment not only attracts people to the company but also improves employee retention.

Recruitment efforts aim to meet the needs of

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both job seekers and managers. Agility, a multinational company operating in 120 countries, faces ongoing challenges in finding the right people with the necessary skills, experience, and behavior. We emphasize the importance of a motivational fit to ensure that selected candidates are comfortable and equipped to perform well in their new environment. Hiring the right staff is crucial for implementing a performance-focused strategy that includes retaining skilled employees. However, finding specialized and skilled workers may be difficult, and replacing experienced workers or providing additional training for employees in specific roles can present challenges for the company. Implementing these measures is likely to greatly improve employee performance by providing more incentives for a sense of belonging to the organization. It should be noted that most organizations operate based on various decisions made within their respective structures.

The practice of decision making within large organizations is primarily focused on approving the course of action to be taken in order to achieve certain goals. This process is mainly carried out at the top management level (Kleynhans et al 2007). Strategic objectives are clearly outlined and decision making is influenced by the leadership style adopted by managers in that specific organization. When it comes to organizing work, employee engagement is highly valued in terms of High Performance Work Practices (HPWPs). Therefore, making decisions in the organization requires the effort of top management, while also considering the perspectives of other stakeholders. Management, according to Kleynhans et Al (2006), is defined as the process of collaborating with people and resources to accomplish organizational goals.

In this unique situation, directors need to excel in planning, forming, and decision-making. They should understand and accommodate

employees' perspectives and ideas to effectively implement High Performance Work Practices (HPWPs) within the organization. This promotes a shared understanding of set goals and objectives. At Agility Logistics, after the merger of four major companies in 2006, we began communicating our annual strategy through Strategy Maps. These visual representations break down the larger picture into manageable milestones that everyone can comprehend. This demonstrates transparency and shares the vision and organizational plans with employees. The organizational goals should be clearly defined, along with each person's role. Those in authority should lead by example. Clearly outlining role expectations ensures individuals know their responsibilities, leading to increased collaboration towards organizational goals.

In a system where the chain of authority is clearly defined, there would be fewer opportunities for conflict or intentional efforts to sabotage those with authority. This is because everyone would be expected to follow the guidelines and regulations of the organization. This can greatly enhance the implementation of High Performance Work Practices (HPWPs) in the workplace. To fully implement HPWPs, it is important to establish measures that ensure employees receive proper training. Employee training is job-related learning provided by employers to improve employees' skills, knowledge, and attitude so they can perform their duties according to set standards (Swanepoel et al 1998). Successful training often begins with a needs assessment to determine which employees require training and what specific skills they need to acquire.

In preparing for training, it is often necessary to conduct a needs analysis. This analysis helps determine the goals and competences that trainees should achieve after completing the training program. Swanepoel et al (1998) argue that needs analysis in training requires time, money, and expertise.

It is important to note that conducting this analysis is crucial as training without it may be ineffective and demotivating for employees. Therefore, considering these factors is essential for fully implementing High Performance Work Practices (HPWPs) in the workplace.

Employee development includes various forms of intentional or unintentional learning such as training, education, and other activities that contribute to general growth and improvement (Kleynhans et al 2007). Training plays a vital role in employee development as its aim is to enhance employee performance which leads to organizational growth. Providing opportunities for training and development allows employees to gain practical experience with the organization's operations.

The organization's acquisition and development is expected to benefit both the organization itself and its employees. Improving employee achievements will lead to better performance, which is advantageous for the entire organization. The main focus of training and development is on human resources development (HRD), which offers advantages to both the organization and its employees. HRD can be defined as a learning experience arranged by the employer within a specified timeframe in order to enhance performance and personal growth. Therefore, organizations should adapt to changes and learn from their experiences in order to create effective strategies that align HRD with the changing environment, especially when implementing HPWPs at the workplace.

The importance of HRD in maintaining competitiveness in a dynamic environment is crucial. Thus, the main focus of HRD is on learning, with the ultimate aim being to achieve objectives for both the organization and individuals within a specified timeframe. As previously stated, HRD strives to enhance performance and facilitate personal growth, benefiting both the organization and its employees. It specifically targets the needs of

employers and employees in order to promote development at both personal and organizational levels.

When customizing HRD to enhance the performance of underperforming employees, it is important to consider the organization's scheme and structure. Additionally, HRD aims to improve job satisfaction and decision-making skills for future roles, benefiting both employees and the organization. It also focuses on improving interpersonal skills and creating a better work environment. These factors are crucial for implementing high-performance work practices. On-the-job training and development, including coaching and mentoring, play a vital role in motivating employees and fostering a positive attitude towards their work.

Mentoring is a valuable support tool that organizations can use to assist young, inexperienced employees in developing a better understanding of their work. This involves guidance from an older, more experienced employee or mentor (Jackson and Schuler 2000). On the other hand, Kay and Hinds (2005) define mentoring as a relationship between two parties who are not connected within a line management structure. In this relationship, one party acts as a mentor and guides the other party, known as the mentee, through a period of change towards a shared objective. The process aims to provide help and support in a non-threatening manner that is appreciated by the receiver, empowering them to confidently pursue their workplace goals.

This process also aims to create an informal environment where individuals can openly and confidently discuss their needs and circumstances with someone in a position to offer positive assistance. Effective implementation of High Performance Work Practices (HPWPs) is also linked to knowledge creation and sharing. Organizational knowledge creation refers to the process of sharing and amplifying knowledge created by individuals and connecting it with

the organization's knowledge system (Nonaka, Krogh and Voelpel 2006).

Research has shown that organizations need to engage in creative cognition activities, such as keeping, sharing, and managing knowledge, as we transition towards a knowledge economy (Nonaka 2007). At Agility, the global learning team implemented an internal website as a knowledge management system. This system allows individuals to share lessons learned, best practices, and success stories and includes a dedicated blog area for the management team. The initiative brought us closer together and enhanced our focus on meeting goals while ensuring consistent and up-to-date information. However, organizing the information for easy accessibility is crucial. In today's dynamic business environment, creating knowledge is vital, particularly for human resources management. HR will play a key role in encouraging individuals to generate new ideas integrated into the organization's knowledge system.

Regarding cognition management, once the necessary cognition has been created, the process aims to maintain the same cognition to meet the organization's needs. For example, according to Nonaka (2001), a crucial principle of a knowledge-based company is to share personal cognition with others. This enables others to learn and facilitates the management of the organization's specific knowledge. Knowledge creation serves as a long-term solution for organizations to gain a competitive advantage in an uncertain and constantly changing economic system (Nonaka and Takeuchi 1995; von Krogh et al. 2000).

Companies that are quick to generate new knowledge in response to changes have a competitive advantage over those who are slow to adapt. Creating new knowledge involves transforming both the organization and its individuals to meet a specific vision or ideal. Knowledge creation is not exclusive to certain departments but rather involves every employee.

This concept applies to organizations that aim to enhance the implementation of high-performance work practices (HPWPs) at the workplace. Implementation of HPWPs involves addressing organizational and HRM issues, including motivational and cultural dimensions. It should be acknowledged that organizational change is inevitable and often driven by internal and external factors, which can significantly impact company operations.

Organizations need to enhance performance in order to ensure their survival and growth amidst a constantly evolving environment. Strategic management is crucial for achieving this, as it involves consciously managing the disparity between an organization's current state and its desired state. The aim of strategic management is for top-level management to establish goals and objectives that the entire organization will strive towards, with the intention of enhancing employee performance. This process entails focusing on the organization's resources, capabilities, and distinctive competencies, while also exploring strategies for attaining long-term success within a dynamic and competitive environment.

In a functional organization, balancing and integrating the external environment and internal competencies and resources is vital for meeting employee expectations. Employee performance improvement is primarily accomplished through strategy planning and execution. Strategy formulation entails analyzing the environment, defining the mission and vision, while strategy execution involves establishing necessary structures and a culture where all participants work towards achieving the overall mission (Swanepoel et al 2003). Motivating employees plays a crucial role in influencing their efforts to mobilize resources and accomplish the mission.

Throughout the procedure, it is important to continuously monitor and evaluate the extent to which the strategic decisions match or fit the changing situations as well as the extent to which they are being implemented. It can be observed that any of these

strategies regarding the working organization have different HRM related implications. From the above statement, it can be understood that strategic human resource management (SHRM) focuses on the human resources, HRM systems and functions (Swanapoel 2003). Aspects related to human resource management impact all aspects of the organizational strategy planning. Whether it is business or corporate strategy, it cannot be formulated without including the relevant human resource related issues.

The importance of human resources in an organization is widely recognized, as they are responsible for ensuring its effectiveness. To ensure their performance is effective, it is necessary to motivate them through incentives that encourage maximum effort in their daily operations. If employees are unhappy, it can be challenging for them to support the organization. Consequently, a performance-based strategy without the support of key individuals may encounter implementation challenges and result in poor performance contrary to expectations. In this case, motivation plays a crucial role in determining the level of enthusiasm employees have for their jobs and the factors influencing their effort.

An employee needs to be encouraged, persuaded, or inspired to perform well in their job (Kleynhans et al 2006). There are various factors that can motivate employees to give their best effort, and the most significant motivator is financial rewards. However, a reward can be defined as a form of appreciation in the form of monetary compensation for exceptional performance in specific circumstances by employees. Regarding individual motivation, content theories of motivation are more applicable as they focus on both internal and external factors that drive an individual. These theories aim to identify the specific needs that motivate people (Carell 1995). The strength of these content theories

is that individuals are aware of what they want, so they are likely to be motivated if those needs are fulfilled.

One benefit of providing incentives to individuals is that it is likely to motivate them once they receive what they desire, resulting in optimal performance in their work. In an organization, teamwork is crucial for the successful implementation of high-performance work practices. As stated by Carrell, R. et al (1995), a team is a group of individuals collaborating towards achieving a common goal.

In any organization, employees are expected to work together towards a common goal. In a team, all members should fully collaborate to maximize their efforts towards reaching the organization's goals. The success of a team often depends on the contributions of each member, with potential opportunities for achieving great results through proper cooperation and fewer chances for conflicts when people work together as a team. According to Stamatis (2001), the concept of a team is based on the philosophy of participation. This philosophy believes that the majority of individuals can make significant contributions to business and social endeavors if they are given the opportunity, knowledge, support, and encouragement to do so (Stamatis, 2001:199).

In an organization, squad members are expected to participate in their tasks to increase the chances of success. This is necessary for the successful execution of High-Performance Work Practices (HPWPs) in the workplace. The issue of culture is also important in a working organization. It is crucial to consider the culture of all employees involved as a way to not violate their values. The strategy should be accommodating to diverse cultures, as it plays a significant role in determining the organization's

success. Respecting the cultural values of employees from different regions is essential. Each society has specific values and norms that define their behavior, so it is important to carefully consider them to establish a harmonious relationship between the organization and its stakeholders.

There is also a need for performance management in order to effectively implement HPWs in any given organization. According to Carrel et al (1995), research has shown that the number one desire of HR executives is to design performance management systems to achieve business goals. After outlining the desired objectives and goals of the organization, it then becomes the role of management to decide what the organization wants to achieve and how to coordinate its resources in a way that will better position it to achieve the set goals. This is where strategies play an important role.

To effectively supervise the public performance of an organization, the organization's management must closely oversee the ongoing procedure. At PWC Logistics, now Agility Logistics, the supervision of public performance was simply a formality, included as part of the annual bonus allocation process with no structured procedure. However, as the company started expanding through acquisitions, there was an immediate need to implement a system that captures and validates goals at the end of the year. The main challenge in performance management systems is not the software or form design, but rather educating everyone on the importance of setting specific, measurable, and time-bound goals and ensuring alignment with individual, departmental, and strategic objectives. Thus, performance management is the process of using all tools, including performance assessment, within total quality management (TQM) programs to achieve performance goals (Carrell, R.).

The study by

et al in 1995 emphasized the importance of occupation design, leadership, and preparation as crucial components of a comprehensive approach to performance. It also highlighted the close relation between an organization's growth and the development of its human resources. In today's dynamic business environment, it is crucial for management to understand its role in enhancing performance and adapt to constant changes to ensure effective employee performance for the betterment of the organization. Although there is no universally agreed definition of High Performance Work Practices (HPWP), a closer examination of the model suggests that the aforementioned factors can lead to successful implementation of such practices in the workplace.

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