High Performance Work Systems Arezou Biabani, Brittany Cook, Sanober Hashmi, Jo Short, Trisha Tran What is a High Performance Work System? Group of separate but interconnected HR practices Designed to enhance employee effectiveness. Results in better skills, more motivation, and more opportunities to excel. HR practices must be aligned and work in harmony A Meta-Analysis of Country Differences in the High-Performance Work SystemBusiness Performance Relationship: The Roles of National Culture and Managerial Discretion Brittany Cook Key Terms HPWS High Performance Work Practices Cultural Tightness-Looseness Power distance Institutional Flexibility Purpose Will HR practices that work in one country work the same in another. To determine if the HPWS-Business Performance relationship is moderated by country differences in national culture and institutional factors. Method Consisted of 156 studies from 35,767 firms, and 29 countries. Studies had to measure both HPWS and Operational/Financial performance outcomes Moderators: Cultural Tightness-Looseness Institutional flexibility Results Take Home Message HPWS are effective on a global level HPWS should be tailored to some extent to local culture, but not to the extent that previous National Culture Theories believed HPWS can potentially lead to lower turnover Major gaps in this study Fails to take into account the variance in cultures within a country Fails to consider if HPWS are common in that country An Employment Systems Approach to Turnover: Human Resources Practices, Quits, Dismissals, and Performance Jo Short The Study Turnover HPWS Customer Service Incentives Survey of call centers in 1998 and 2003 Senior managers took surveys about their core workforce HPWS measured by extant of employee discretion, use of problem-solving groups, and use of self-directing teams Results Long Term Incentives HPWS Short Term Incentives Turnover Customer Service Take Home Message Implementing a High Performance Work System...Depending on the business model Reevaluate current incentive models to make sure it aligns with the business Contract employees Internal promotional paths Mentorships Developing Collective Customer Knowledge and Service Climate: The Interaction Between Service-Oriented High-Performance Work Systems and Service Leadership Sanober Hashmi Key Terms Service Climate: employee perceptions of the practices and procedures that get rewarded with regards to customer service and customer service quality. Service Leadership: business leader’s behavioral focus as an example for the unit Collective Customer Knowledge: knowledge employees have on different customer types and dealing with customer needs. Is there a positive correlation??? 1. Service Leadership will positively relate to customer knowledge and service climate. 1. Service-Oriented HPWS will positively relate to customer knowledge and service climate. The Method Huge high fashion shoe retailer with more than 5,000 retail stores used to collect data. 1st round: Implementation of Service Oriented HPWS 2nd round: Employees = Service leadership and service climate Store managers = Collective customer knowledge and service performance Service Leadership Collective Customer Knowledge Service Oriented HPWS Service Climate HPWS * Service Leadership Low to High Leadership makes a difference! Take Home Message Invest in HRM practices or rely on the behavior of leaders for superior customer service. It may not be efficient to invest heavily in both of these approaches at the same time. Redundancy. The role of employee HR attributions in the relationship between high-performance work systems and employee outcomes Trisha Tran Key Terms HR Attributions Organizational Commitment Job Strain Multi-level The Study The Study High Performance Work Systems HR Well-Being Attribution Job Strain Method HPWS data is collected from line managers Data on HR attributions, commitment, and job strain are directly from the employees Collected within a wide variety of industries Measured along 5 functional HPWS areas 26 HPWS items were grouped into 3 bundles: skill enhancing, motivationenhancing, and opportunity enhancing Results The Study Not significant High Performance Work Systems HR Well-Being Attribution Job Strain -.13 Take Home Message Find a balance between well-being attributions and performance attributions in order to utilize HPWS to retain quality employees Work-life balance Performance appraisals Surveys Group goal setting Turnover group (slide 30): Career development, company specific trainings Walking The Tightrope: An Assessment of the Relationship between High-Performance Work Systems and Organizational Ambidexterity Arezou Biabani Key Terms ● Ambidexterity: to exploit and explore opportunities concurrently ● Ambidexterity congruence: extent to which exploration and exploitation are conducted simultaneously ● Discipline: to have clear performance standards & expectations ● Stretch: to set goals that “raise the bar” The Study ● Using HPWS to get ambidexterity ● Achieving firm growth through ambidexterity ? → HPWS ? → Ambidexterity Firm growth Method ● 215 high-tech small/medium-sized firms 10-250 employees ● Likert scale survey → HPWS: 27-item scale measuring HR practices → Ambidexterity: 12-item scale measuring exploitation & exploration ● Firm growth: Compounded annual growth rate of sales & employee growth Scale Items 1, “strongly disagree,” to 5, “strongly agree” Ambidexterity: Exploration → Looks for novel technological idea by thinking “outside the box” Exploitation → Commits to improve quality and lower cost HPWS: Employees in our firm are often asked to participate in decisions Results Take Home ● To produce an ambidextrous organization, HR practices should be linked to discipline, stretch, support & trust ● To successfully link HPWS to ambidexterity, HR practices should ensure: → Selective staffing → Extensive training → Results-oriented appraisal, rewards & participation → Internal mobility → Employment security Group Take Home Message Before investing in a HPWS make sure it aligns with the organization Know that the results of a HPWS take time and are hard to measure One HPWS will not necessarily work the same way in another company