Exposure of Our Surroundings, Environment Literature and Technology Etc. For Instance A Person

Lecture number 1: Interaction is the only instrument to learn.
And this interaction does not essentially revolves around human interaction rather this broad concept includes interaction with anything that assist human being to change and adapt, either its people, environment, literature (books etc) or technology. Thus one of the major sources of human learning is Socialization. This notion should also be understood by the fact that when human knowledge is obtained by various kinds of socialization or interaction, this knowledge is also depending upon the scope of human beings. In other words our knowledge is limited with the scope of our exposure of our surroundings, environment literature and technology etc. for instance a person obtaining knowledge from the source of literature, would be having knowledge limited as per those books and literature that he had gone through. With the passage of time, our interaction keeps on increasing, so do our exposure and knowledge, all the way in our life, helping us to keep on learning. The way a child get familiarized with his family, then society and later on to the world, his exposure increased his interaction and so do the learning and knowledge increases as well, as illustrated in following diagram:
Therefore, we can conclude that there is no limit to learning but to our knowledge which is limited and has to be improved side by side in all our life. That is why it has been said that Move around to learn. This was also the reason that previously sailors were considered wise people, as they were a source of improvement of peoples skills etc. as the purpose of interaction is to expand our exposure with other things and that gives us knowledge through learning. Till here, we can conclude one thing and that is knowledge and leanring is very essential for human survival as well as success but in this regard there raises another important question that How to establish: Reality Criteria Standard Truth etc Because for establishing or defining these, one has to have stable situation etc, which is not the case, as situation is not absolute rather emergent. to clear the point of discussing situation here, we must consider one of the saying that : Man is a product of his environment As through exposure and interactions, a man is exposed to different kinds of : Behaviors Structures Personalities Factors etc
HPWSs notes by Noureen Mushtaq
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And thus we become able to develop a complex idea through interpreting these various kinds and natures of factors of simple things as said by David Hume: Man develops or transform a simple idea into complex one, for which mind has no further explanation This background discussion was made in order to build up an understanding for our first concept which is: Ladder of inference: Ladder of inference is used to make people belief that they love in a subjective World. By subjective world, we mean that it is such a world which is defined by ourselves, by us reading our: Situations Conditions Surroundings etc By making an employee belief that nothing is solid (with reference to situation), a vacuum is created for those employees to adjust and deal with the misbehaviors or such behaviors which are not of their desire or through using ladder of inference it is attempted that employee can deal with the unfavorable behaviors and happenings. Because it is a fact of life that everything can not go in ones favor or as per the desire of ones self, thus by these realization, one can be made to tolerate and accommodate such disturbing situations or cases as each one of Create our own Reality, based on our own beliefs. From some Set of values generalized values become more important and transform into Beliefs then such Tested Beliefs becomes Assumptions which are not allowed to be Challenged. And this is how our realities, our criterions and our standards differ from others. And mostly we follow the following patter while decision making : Context specific Assumption Conclusion And all of this is done, because we create our own reality. Ladder of refence promotes the employee that everyone has the right to define his or her own reality along with this the power of environment cannot be overlooked where environments pressure controls our behavior. That is why a learned man is the one who: Learns Unlearn & Relearn That is why for changing others behaviors, one has to change the environment as we dont jave any other way of altering the behaviors. Principles of Ladder of inference: In short, following are the principles of ladder of inference: 1. As per OUR Set of values/values 2. OUR Beliefs 3. On OUR Assumptions 4. Draw OUR own conclusions 5. Collect OUR data 6. Observe the data 7. We give Meaning While all of these components or principles, everything is based on I. Piagets Model of Learning:
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Whatever we see or acquire, we test it on the basis of our existing adopted or manifested mental structure or standards or assumptions and only that thing which can fit in there, in the mind and aligned with it, stays while others are disregarded. We evaluate new things on the basis of our own old, existing experiences and by default there exits, inbuilt resistance to change, in our mind. Thus we do following steps: 1. We Evaluate the Change and Resist to change and then 2. We start Accommodation with change (means, that with the passage of time we start accommodating ourselves gradually and next comes) : 3. Adopting 4. Organizing as your mental structure is mature enough to align this newness/change with previous mental structure. When a person gets mature enough even being a learned man, this process still goes in, but its duration is reduced and ladder of inference is used as a tool to teach employee, to respect others values as well. We have to go through the basic assumptions in order to define or recognize our mental structures. Thus two perspectives or aspects have to be addressed in this regard: Metaphysics-Ontological discussion: 1. What is Reality/Knowledge? Epistemological Metaphysics discussion: 2. How do we know it?(process of knowing that this is reality Realitys Different Assumptions on school of thoughts: 1- Absolution Modernism (Reality is independent of its experience) 2- Subjectivism Symbolic Interpretivism (Reality is dependent of its experience) 3- Projection through language Post Modernism (through Language reality is displayed. Thus the purpose must be fulfilled for which it has been use/displayed ; what is in it for me?) With the tiny change in the mental model or mind set, a complete new entity is being created. Economical Rationality is the mostly biggest reality and it over ruled every other relationship when economic benefits are at stake then there is no moral or ethical model works. It is an unconscious or unintentional process for the individual but intential for the one who is grooming him. Thus, organization, structure etc varies for person to person. Have faith in your version of reality.
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THE HIGH PERFORMANCE WORK SYSTEM: The discussion of the lecture would start from the basic concept of HRM, reaching to SHRM an d discussing HPWS, in the same regard. HRM is includes all those activities which are linked with Management of Employment Relations. HRM can be defined (Story, 1992) as an approach to people management which seeks to achieve Competitive Advantage through the strategic Deployment of a highly committed and capable workforce, using integration of cultural, structural and personnel techniques. HRM is explaned with two variants: 1- Soft HRM (focuses upon Developmental Humanist aspect) 2- Hard HRM (focuses upon Management aspect of HR) 1-Soft variants: HRM can be explained by Humanist model (which contains its focus on the human factor, means that people have to be empowered, trusted, skilled and quality focused etc which will become a source of competitive advantage for the organization. 2-Hard variants: HR is just an asset, which is as any other asset of the organization. As per the approach of cost-leadership, people must be managed, which focuses Utilitarian Model. In short this approach promotes that efficiency has to be improved. Both of these aspects of HRM talks for achieving one objective and that is competitive advantage, as competitive advantage is directly proportionate with Organizational performance: 1- Soft Variants Humanist Model Human Focused Competitive Advantage 2- Hard Variants Utilitarianism Model Management Focus Competitive Advantage. There is always a controversial debate going on between soft and hard variants of HRM, but Guest (1999) has addressed some of these issues on the basis of empirical evidences that whatever way HRMs variants are manipulated, employees are preferring to such situations which are resulted by the presence of few HR practices. As HR is a source of achieving competitive advantage (as per both debates) that is why a series of new labels (which are simply covered by HPWS) emerged in such as: High commitment management High involvement management Best practice HRM Best fit etc According to Delary and Doty (1996) it leads to three perspectives for organizations: 1- Universalism Perspective: It is meant for everyone and it talks about a) Business Strategy b) HR strategy 3) Business performance and it talks about Best Practices with same results. HR practices and Business strategy are independent yet they contain a positive relation or impact on the business performance.
HPWSs notes by Noureen Mushtaq Page 4
Although both of these (HR practices and business strategy) are very much important for an organization, yet it is not essential that both of these have to be aligned. 2- Contingency : As per this perspective, it would be same as well but their pattern would vary. According to this perspective, HR practices and Business strategy has to be Aligned or Integrated and HR practices have to be developed according to the business strategy, otherwise it would not positively improve business performance. Business strategy Hr practices Improved Business performance 3- Configuration: This perspective promotes the contingency perspective where its focus is on Environment as well. That is why as per the environment, HR practices and business strategy should be aligned only then the business performance will be improved. Keeping an open-ended approach and following holistic approach for inquiry to keep on analyzing the internal organizational systems etc, for the integration and possible adaptation of change, along with the patterns through which these hr practices work. There are further two views regarding Competitive Advantage: 1- Industry Organization Model also known as I/O Model 2- Resource Based View also known as RBV Industry Organization model: The forces of External environment are homogeneous and moveable, in that particular industry (which means that every player in the industry has the access to those factors or influenced by those forces, as well as cane exploit those resources). Thus a proper use of business strategy would create potential competitive advantage for them as well. Resource Based View: It states that it is actually the internal environment of the organization that creates competitive advantage for the organization. Therefore the internal forces of the organization are heterogeneous and immovable in the industry and they have more potential to be a source of competitive advantage as they are: Rare Adding value Non-substitutable Inimitateable (Only HR holds these attributes for a longer time period resulting in organizations sustainable competitive advantage) Resource Based view the impact or relations among a team is mediated by: 1- Social Complexity 2- Causal Ambiguity And because of these factors, human beings fulfill the requirements that enable HR to play its important role in achieving Competitive Advantage. For instance there is a team, being a source of competitive advantage and no one knows that what is the actual reason of their performance, as the possibilities could be: Their relationship Environment etc
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From this point it is leading to SHRM or strategic Human Resource Management, as SHRM is the focus of HPWS, that is why in many contexts two of them are used interchangeably. SHRM: SHRM is a set of practices that provide employees with Skills, Information, Motivation and Latitude, resulting in a workforce that is a source of competitive advantage. According to the Huselid (1995) there are links between HPWs and organizational performance if these kinds of SHRM practices are used whereas Flood et al. (2005) had examined the economical benefits. When it comes to HPWS, then there are basically four components of HPWS and HR practices are one of them. SHRM is based on two pillars: 1- Integration it deals with Fit/Perfect Fit (fit in both sides of HR bundle; horizontally and vertically). 2- Devolvement it deals by answering perfect fit but To what Extend In Integration, we will discuss two sides of HR bundles: 1- Horizontal Fit: By horizontal fit we mean that all of the HR practices must be aligned with each other. 2- Vertical Fit: By vertical fit we mean that all of these HR practices must be aligned with the Business Strategy. HR practices are aligned and having a perfect fit, horizontally as well as vertically, which is also taken as integration. Now we will discuss Devolvement, that deals or explains that to which extend organization has transformed/empowered or authority has been given to the line manager, instead of HR specialists or experts for executing HR strategy, as Line managers are the actual hands through which organizational strategy would be implemented. And even the nature and correct assessment of the workflow etc can be done by a line manager more accurately than others. Devolvement is such an important concept in SHRM, that without devolvement HRM will never reach the level of SHRM.
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Lecture 3- Dated: 04-03-2014 Following are the most important Terminologies used in HPWS: Work: Efforts apply to accomplish something Work System: work occurred through some purposeful or proper system Work system Framework: a model for initial understanding of operationalization and accomplishment of work system Goal: desired results through efficient use of work system Organization: Multiple work systems that are coordinated to achieve some good, that cannot be achieved through individual work system Business Process: work steps through which work is accomplished with a proper work system. Work system: it is a combination, integration and collaboration of machine and humans, to produce product and services Work systems: It is a combination, integration and collaboration of machine and humans, to produce product and services The term work system defines how the work of the organization is accomplished. The decisions reading work system are Strategic in nature, which are focused to Protect and Capitalize on Core Competencies of the organization (it also includes the decisions regarding what should be procured or produced outside your organization in order to be efficient and sustainable in the marketplace. Work system includes: a. Workforce b. Key Suppliers & partners c. Contractors d. Collaborators e. Other components of Supply Chain management Work system Framework: The approach for understanding work system includes both views: i. Static View (of a current system in operation) ii. Dynamic View (of how a system evolves over time; includes planned change and unplanned adaptation) Work system contains four elements: 1. Processed and Activities 2. Participants 3. Information 4. Technologies In order to understand work systems operations, context and significance, following five elements should also be considered: 1. Product and services 2. Customers
3. Environment 4. Infrastructure 5. Strategies Definition of the sum of these components or elements of work system, are explained briefly below: 1- Processes and Activities: includes everything that happens within the work systems. 2-Participants: are people who perform the work. 3- Information: includes codified and non-codified information, used and created as participants perform their work. Knowledge: can be viewed as a special case of information 4- Technologies: include tools and techniques that work system participants use while doing their work. 5- Product and Services: are the combination of physical things, information and services that the work systems produce of its customers benefits and use. 6-Customers: are the people who receive direct benefits from products and services that are produced by work system (includes external and internal customers). 7- Environment: includes the organizational, cultural, competitive, technical and regulatory environment in which the work system operates. 8- Infrastructure: includes human, informational and technical resources on which the work system replies. 9-Strategies: includes the strategies of the work system, departments and enterprise, in which a work system exists, which may explain why the work system work operates or work, the why it does. Creating Work system: There are three incidents of work system: 1- What employee does? 2- What employee need? 3- How job interacts or interfaces to each other? Job Characteristic Model: It involves the following: Skill variety Task identity Task significance Autonomy Feedback 1-What Employee does? 3- How Job Interact or interface each other?What Employee does? Work System
2-What Employee Need?
1What Employee does? What an employee does would be determined by the following: Job Specialization
Job enlargement
Job enrichment
Job Rotation
Job Characteristic Model: It involves following: Skill variety Task identity Task significance Autonomy Feed back Above mentioned characteristics will lead to: Skill Variety Task Identity Task Significance Autonomy Feedback Meaningfulness of Job Employees Job Satisfaction
Accountable or Empowered person Reflecting Actual Performance
Goal Achievement 2What employee need? Needs are depending upon various possible factors, which are required to be considered, such as: Need varies according to age and gender Employees need voice or representation They need work-life balance Safety, security etc It has to be understood that without fulfilling the needs of people or employees, organization cannot force them to work. 3How Job Interact: How job interact is depending upon how business require that job to be interacted or interfaced. Strategic Design of work or Redesigning of work: There can be various examples of this concepts, such as: Outsourcing Off-shoring Franchising etc Work system to HPWS: Work system was first discussed by Bortorm and Hiessen (1977). Then it was discussed with the concept of Socio-technical system David Naddler (1992) discussed High Performance work system
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High Performance Work System: According to Huselid (1995): Strategic HR practices which are considered as performance enhancing, are known as HPWS. It is important to note that there is no single definition of HPWS. But there are some common ideas regarding HPWS, as agreement needs to exist on what is HPWS in terms of subject matter and content. In order to respond the dynamic environment and change itself, organization highly replies upon the expertise and initiatives of its employees, regarding problems and opportunities. For this reason, timely and accurate information has to be provided to employees, only then they will be able to understand the overall direction of business and their role in contributing towards it. Because of providing timely, accurate and relevant information, organizations are more likely to: Get good suggestions More employee commitment Shift from command and control to commitment focus Fundamental shift in relationship between employee and employer Therefore, employees will: Know more, do more and contribute more Principle of knowledge Development: Knowledge development is the twin sister of information sharing. Today there is rise of knowledge and skill requiring jobs, as organizations are competing through their employees that are why they have to invest in employee development as well. And such a system will attain, retain and build employees through opportunities etc. HPWS is an extension of SHRM and deliberation of work systems. Following is the definition of HPWS: It is a combination of: Human resource practices Work systems Structures Business practices and processes That develops employees with: Flexibility Commitment Skills Knowledge This reflects how these practices, systems and processes help employee to maximize. What important here is to understand that they key concept if System not its components alone, as it is composed of many interrelated parts that complement one and another. David Nadler (1992) was the person who used the notion HPWS for the first time as an organizational architecture which included both technical and social aspects of work. Whereas Edward Lawler (2000) had identified primary principles that support HPWS, mentioned below:
Principle of HPWS: Following are four principles: i. Shared information ii. Knowledge development iii. Performance reward link iv. Egalitarianism (justice/equality) 1- Shared information: This principle is critical for the success of empowerment and involvement initiatives in the organizations, as now the demand of jobs is of diversified set of skills and knowledge because of pace of change, technology , need of innovative approaches for solving problems in novel manners etc, therefore HPWS needs to learn in Real Time. HPWS depends on the shift from touch labor to knowledge work. It means that there has to be such systems which has clear pattern of communication, because only then it will lead to specific decision. i)Shared information ii) Communication iii)Empowerment iv) Employee Commitment & Motivation v)Builds decision power for right choice of alternatives vi)enhances performance. 2-Knowledge development: Natural aspect of organization is that the interests of employee and employer vary, either intentionally or unintentionally. That is why for smooth way, these interests have to be align by various tools such as performance based rewards etc by using mutual beneficial mechanisms. Thus, employees may work above or below their duty, which is not certain. So to make certain these efforts are made. Environment goes from linear to non-linear conditions, which means that sometimes sharing information can be dangerous as ell, so there should be proper training and development skills, only then shared information can create commitment, empowerment and performance etc. 3-Performance reward link: It happens that performance based rewards, create conflicts of interests among employees and organization also, which are obvious and natural. On the following basis, reward is given from organizational perspective: Skill based rewards Performance based rewards Seniority based rewards 4-Egalitarianism (justice/equality): People want a sense that they are members, not just workers. That is why status and power differences would tend to separate people giving a feeling of US VS THEM. Thus the ultimate objective of HPWS is to eliminate such differences and increase collaboration and teamwork, by various ways signally employees that they are equally important as others, as per their contribution; seniors executives do not enjoy any traditional benefits etc. in short the Power is moving downwards, by empowering employees which needs structural changes as well. As
work flow has to be redesigned in order to give employees, more control and influence in decision making. Peter Arthur Hanson said: To be a successful independent, you need to empower your employees and let them know that they are critical to success Some of the ways of increasing employees power are: Job enlargement Job enrichment Self managing work teams To conclude it, this principle advocates that: 1Employees must be treated equally 2Egalitarians say that if there is a separate dress code for seniors and workers, then it indicates the less equality in the organization 3Employees can even call their seniors and managers with name Lecture 4- Dated: 11-03-2014 *It describes structure and it has to eb on the basis of principles Anatomy* of HPWS: HPWS frequently begin with the way work is designed. Quality drivers such as TQM and reengineering has shifted the focus of the companies from separating jobs into discrete/ isolated units to key business process which are responsible for customer value and then creating teams, responsible for those processes. Therefore, we have today many practical and successful examples where instead of separating each stage of production into discrete steps, teams work together in a seamless process to produce products and services, which ultimately makes work more meaningful for employees as well. 1- Work Flow Design and Team Work: 2- Complementary HR Practices 3- Management Processes and Leadership 4- Supportive Information Technology The important point here is to keep in mind that any components alone weather its work design or reengineering is lonely comprises of HPWS, other supporting elements of HRM are also essential that is why when it is HPWS, we talk about changes in workflow design with HRM practices that encourages skill development and employee involvement. 1-Work Flow Design and Team Work: HPWS is all about how the work has been designed. HR Management is based upon: 1- Total quality management 2- Restructuring 3- Re-engineering All of these attempts are made in order to make sure continuous visiting and revisiting organizational structure and work flows to improve. In this perspective TQM as modification is required to keep adjusting with changing environment. Restructuring and reengineering
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to redesign the work flow on the basis of the principles of HPWS. Redesign the workflow of main people, who actually execute work.
TQM
Structure Restructuring
Reengineering
And take advantage of employees KASOS. If there is no KASOS, than there would be no HPWS. As if KASOS is not present then there is no benefit of empowering or team making that is why employees knowledge etc should be enhances.
2- Complementary HR Practices: One cannot handle HR well unless HR practices are properly followed. All of these practices or processes are integrated to build competitive advantage and to deliver ultimate customer value. And through HR practices, the team is made and empowerment is assigned to such teams, in such situation empowerment can be beneficial, for the organization.(there are three HR complementary, from which one has been discussed here): 1. Staffing Practices 2. Training and development 3. Compensation 1-Staffing Activities include: HPWS begin with highly directive recruitment and selection practices. It is very important to get the best pool of candidates from which to choose, one of the key attribute that organizations have to look with reference to HPWS is individual with the ability to Learn continuously. Technology has made it much easier now with the help of HRIS, which can keep the inventory of employees talent and search for specific skills, needed by the organization. Because talented employees Come to speed up more quickly and take less time to develop, means that even for gaining maximum benefits of training, the eligible employee, having the potential to be enhanced, must be recruited and selected. It includes the following important elements in it: i. Job analysis ii. Job positioning iii. Screening iv. Recruiting v. Selection We will select only those candidates, who have steeper Learning Candidates/ fast learner with reference to our discussion. We will select that weather they can manage learning process according to the requirement of organization and can acquire and manage information.
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2-Training and development: Just like recruitment and selection, training ensures that employees have the skills needed in HPWS for superior performance. Typically training focus upon: Technical aspects Problem solving Interpersonal skills Teamwork Involvement Continuous improvement Better understanding of work Another important reason of training and development is that the skills set gained should be procured and updated side by side to periodically review the competencies of employees. Training and development used to breach the gap between what employees have and what they are desired and on the basis of HR Inventory so that can tell what is existing hr in the organization and what will be required for training and development, as everyone cannot be trained in organization, having these number of employees. T and D is about grooming to make decision and solving problems at their own level. Therefore copying with T and D has to create or improve following factors: a- Developing skill/abilities b- Problem Solving c- Decision Making d- Interpersonal Skills etc. 3- Compensation: Another important piece of HPWS is Compensation package. It is very important to note that organization demands many different things from employees, that is why it is also difficult to isolate one single approach to pay that will be effective and working for everyone. That is why organizations now adopt alternative compensation plans in order to link Pay and Performance. Therefore HPWS offers some type of Employee incentives. The fourth important principle that will be discussed after this, principle of Egalitarianism also talks about equality, for which HPWS also uses open plan systems in which everyone knows what the others are making, and thus results in more egalitarian environment. There are two dimensions of compensation: 1- Pay to Performance 2- Pay to Skill (which means highly skilled labor has to be incorporated) In HPWS, you use segmentation in compensation as the requirements are higher from employees. Through a multi dimensional approach of compensation, to compel and motivate the employees to perform this much and be involved. Employees would be compensated as per their involvement and contribution to the performance.
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4-Management Processes and leadership: Another important aspect of HPWS is linked with Management process and leadership at different levels. It is equally important to understand that the role of management and leadership would be very essential, initial and crucial as HPWSs success highly depends upon the changing the roles of the managers and team leaders. With fewer layers of management and a focus on team based organization, the role of managers and supervisors would be entirely different in a HPWS environment, more likely as coaches, mentors, facilitators and integrators of teams. Alternatively, different individuals can assume functional leadership roles when their particular expertise is needed most. Organization core competences and functions Are made on the basis of core competencies
Core Management and Core process
For instance the various concepts of leadership have been introduced to cultivate self disciplined teams etc, such as: Servant leadership Enabler Stewardship Facilitator Motivator etc 4-Supportive Information Technology: Communication and information technology are integrated pieces and are another important element that has to be added to the framework of HPWS, as different kinds of technologies can create the infrastructure for communicating and sharing information that is very important for business performance. Computerized systems can help in various ways, as we have discussed the importance of timely, accurate and relevant information sharing, without which HPWS cant be successful. Yet it is important to know as well that information technologies need not to be always so high-tech, the richest communication is always face-toface. It means that informational technology has to help the organizational function. Fitting it all together: Although each of the individual pieces of HPWS are very important but whenever the discussion goes on about HPWS the importance of all of these pieces or elements of HPWS is particularly valuable in terms of their particular value in terms of how they contribute and fit to the overall system, as a whole. For this carefully planning is needed to ensure that all pieces fit together with the strategic goals of the organization. There are two important aspects to look on to the fitness: a. Ensuring internal fit b. Ensuring External fit a. Ensuring Internal fit: talks that all internal elements of HPWS should complement and reinforce each other. Thus, for instance to bring change in one component will not be effective
unless it is aligned with the whole system. That is why we talk about horizontal fit; all HR practices, work designs, management processes and technologies complement one another. The synergy that is achieved through the overlapping work and HR practices is the essence of HPWSs effectives and success. (Consider yourself as an organization including the HR practices, Management Processes and technology; also includes horizontally integration) b. Ensuring External Fit: it is equally required by a system to support the organizational goals and strategies. This all starts with the basic analysis of competitive challenges, organizational values and concerns of employees. On the basis of these goals and strategies each members knows how individual efforts will make a difference. Thus by achieving vertical fit, the HPWS can focus on its designs by keeping the strategies and goals in mind. Thus, strategic requirements are translated directly to those who are actually going to achieve it. (For whom you are working, strategic objectives, customers, suppliers, competitors, distributors and environment etc) As per the (theory name?) minimum satisfaction level of all stakeholders should be met. As it is commonly said that keep them happy and it will create happy ways for you as well and all of these four elements are linked with: Integration Devolvement Assessing the alignment: The HR Scorecard The balance scorecard is a tool that is used to evaluate the link between strategic goals and operational activities. Becker, Huselid and Ulrich had adapted the model to create HR scorecard that helps manager to assess the strategic alignment of their work system.HR scorecard is used to diagnose internal fit and is very helpful for managers to see how to best implement the system, by these three assessments: 1. Assessing whether Particular HR practices reinforce one another 2. Assess whether HR practices significantly enable key workforce deliverables ;stability and teamwork etc 3. Assess the degree to which deliverables are connected with strategic performance To what extend all of the processes have been aligned or integrated. For this purpose we use HR Score card to asses this. HR score card is a tool to evaluate HR practices. HR Expertise: -Admin Expert (policies) -Strategic Execution Expert - Employee Advocacy (voice of employee etc) High Performance Practices: -Communication based -Staffing -Compensation -Development -Measurement etc Strategic Focus: -operations -Product leadership It will guide you -Customer intimacy
There is nothing invested in T& D that cannot be measured
HR Deliverables: -workforce Mindset -Technical skills -Workforce behaviors
HPWSs notes by Noureen Mushtaq As a result this system will formed
through the path and will enhance HR performance
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-Alignment Based
On these basis you can develop HR system Another important component comes here in this discussion that is of the unlocked Black box.
How & When (Black box) HRP/SYS REUSLTS
As an HR manager one must translate the potential monetary benefits that can be achieved by investing in HR and when you can define it and communicate it to the executives that are the important contribution in an organizations decision making where you sell this important point to the strategic top level management. By all of these steps, we try to modify all of the relevant HR factors that can result in improved performance etc. There are various theorists, who also talk about integrating HR score card with Business Score card Implementation: Much of what looks good on paper gets messy during implementation. Thus it is of major interest to identify the key factors that can make or break HPWS, such as: 1. Make a Compelling case for change, that should be linked with businesss strategy 2. Ensure that the change is owned by senior and line manager 3. Allocate sufficient resource and support for the change effort 4. Ensure easily and broad communication 5. Ensure that teams are implemented in a systemic context 6. Establish methods for measuring the results of change 7. Ensure continuity of leadership and champions of the initiative These recommendations are applicable and effective in almost any change initiative , but more importantly for broach-based change efforts for HPWS. 1-Establishing a communication Plan: There should be a Two way (bottom up and top to downward ) communication that can project managements views to employees and reflect employees hesitations, fears and insecurities well. That is open exchange and communication at an early stage pay off later as the system is completely implement or completed, as during the implementation and once when system is place, shared information is always the building block of HPWS.
Communication plan; which should be in two way pattern: 1- top down (it reselects the top level managements trust on employees) 2- bottom up patterns(it should the willingness of employees for top management) 2-Involving the Unions: Involve union members early and to keep them as close partners in the design and implement, this will avoid many possible negative reactions that could result in the miscommunication or missing involvement, representation of the unions and labors. Unions: it involves powerful stakeholders, who can cause resistance to change or in other words they are main or key resourceful persons who can cause resistance. Instead of Win-Loss situation, it should be tried to make Win-Win position or at least to create its illusion for other parties. 3- Cultivating Mutual Gains: When it comes to HPWS, we talk about integration and alignment of all of the components of practices, systems and work flow, that gives a pretty good idea that this vary same formula has to be applied to all of the managers, labor representatives etc to create win-win situation and only then each member involved will ensure the success of the HPWS by contributing to their best level. There are following important points in it: Trust is very important, fragile component of an alliance, thus it has to be promoted Information sharing and decision making are the key indicators of the degree of trust each party contains. So build trust up, that everyone will be benefited. 4- Establishing Formal Commitment: There has to be some legitimate indicator thorough some tangible symbol of commitment, such as in the form of legal documentation or policy documents etc. these Formal or document zed form of commitment is used for two main objectives: 1. An indicator of managements commitment 2. To institutionalize the relationship, even after key project head, executive or champions leaves. It can also be done through formal documentation (of negotiation etc with stakeholders), which will demonstrate a clear picture to everyone, so they can help and enhance, as well as assist change. That is why one should keep in mind that the negotiation will remain as long as the document stays, so you cannot change it without concerning other person and involving them in also. Never overlook the document, as everything else is designed according to that document. And also never go for one-sided change or modifications on the documents as it is never acceptable. 5- Fostering Support of other key constituents: For effective implementation of HPWS, it should be having solid support and understanding at all levels not only among the excuetive or representative levels, which can be done, for example by decentralizing the labor relation function, assigning responsibilities to line
managers etc, because they are the actual ones who will establish a direct relation with the union and labors. 6- Adhering to Procedures: It is very important to stick and hold on to the procedures as Wright said that Alliances stand on the rug of procedure, or in other words it can be said this way that alliance rely and depends upon the procedures that have been agreed and defined at the time of mutual agreement etc. 7- Navigating the Transition to HPWS: Now the time has came after all of the previous steps to find a way for making the existing system go through the transition phase and absorb the effects of change, positively. This is an ongoing activity and is never fully achieved either. Because in HPWS pieces or components of a system are refined, shaped and transformed instead of all of the system at once. There should be: 1. Top Down Change driven by Management 2. Bottom Up Change driven by employee But it will only be effective when both of them would be in same direction; top-down approach is an indicator of Managements support while bottom up approach is the reflection of employees acceptance and commitment. 8- Building a Transition Structure: Implementing HPWS works differently for different organization, that is why it is a fit not a set of best practices or golden rules, equally applicable to every context, time and organization. Thus some organizations can take a pause in their production or operations while implementing these changes, whereas others cannot afford the pause or break. Therefore there should be a structure (such as mapping key process, redesigning work and training employees etc) that will make the transition phase successful at the same let the others or key operations of the business, not being negative effected. Translation: it means draw map line and Pick a proper model to implement. 9- Incorporating HR function as a Valuable Partner: One possible mistake while implanting HPWS, could be allocating too few resource that includes money, time and expertise. That is why all of these three elements have to be kept up to that level that can deal with all possible issues and difficulties that can come such as the stress and problems that will be faced by the employees as when they are faced with new systems, even trained and experienced employees have to start all over again which is stressful and can spread in workforce by copying behavior , that is why such managers are required at that time who can identify these human problems and can deal it well. So again, resources in the form of time, money and expertise have to be aligned with HPWS also. 10- Evaluating the Success of the System: HPWS has to be continuously evaluated and monitored after it is being implemented. There are following important aspects that have to be evaluated and monitored:
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1. Process audit to see that the system has been implemented the way it was designed or planned (planned vs actual system), it may include following key questions: i. Employee actually working as teams/together? ii. Access to required information for empowered decisions? iii. Training programs result in developed HR (skill and knowledge)? iv. Performance based rewarding and useful suggestions are happening? v. Fair treatment of employees to minimize power differences? 2. Is actual or operational process focus upon goals of HPWS? Which can be answered by looking on these areas : i. Employees showing desired behaviors? ii. Quality, flexibility, productivity and customer services objectives are achieved? iii. Employees Quality of life is enhanced? iv. Increased competitive capacity of firm than past? 3. HPWS should be evaluated for updated organizational priorities and initiatives 11- Outcomes of HPWS: There are various levels and wide range outcomes of HPWS, which are basically classified as : 1. Employee Outcomes and Quality of life 2. Organizational outcomes and competitive Advantage 1-at Employee or Individual level (for instance weather his work life quality or work life balance is improved or not etc)it may include: 1. Autonomy 2. Learning 3. Knowledge enhancement 4. Career development and growth 5. Expertise 6. Recognition/ valued 7. etc When organization has gained the potential candidates then it is a must to allow them to use their skills, knowledge and potential for organizational success only then the cost and efforts incurred by recruitment and selection or training kinds of processes would be fruitful for the organization. 2-At Organizational Level; it includes further two things: iCompetitiveness iiCompetitive Advantage (means that through HPWS one has improved the
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organization as rare, in-imitable, non-substitutable and value adding) It may include: 1. Higher productivity 2. Lower costs 3. Better responsiveness to customers 4. Etc But all of these are struggled to gain sustainable competitive advantage. And for that these has to be the following characteristics in HR and system to be a source of Competitive Advantage as: 1. Valuable 2. Rare 3. Difficult to imitate 4. Organization In literature there are other similar concepts existing such as; HPWS leads to High Commitment High Performance ManagementHigh Involvement Therefore it can be concluded that Sustainable competitive advantage is not possible today without HPWS. As through the followings: 1- Core Business Functions 2- HR practices And both of these maximize employees performance as well as his wellbeing and which definitely influence organizational performance including competitive advantage, as HPWS focuses upon Employee. There are various other factors, also taken as driving forces for HPWS, including: All HR practices/processes etc Employee commitment HPWS HPWS and small and Medium Sized Employer: HPWS is equally applicable to small and medium sized organizations and are equally appropriate to all sizes. What is the essence of effective system of HPW practices is that they have to be done with coordination and integration.
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Lecture 5, Dated: 25-03-2014
HPWS Debates in Literature

There is no debate on the possible benefits that can be achieved by implementation of HPWS. But there is a strong need of agreement regarding what HPWS represents in terms of subject matter and content? Whenever we talk about HPWS, we talk about its link on organizational outcome or performance, but no where the mechanism have been defined yet, through which this link is translated or created. Many researchers have agreed that HPWS incorporates the following key areas such as: 1. Management methods: o It indicates Employee involvement in Quality improvement 2. Work organization o Includes autonomous work teams and vertical task work 3. Human resource management practices o It includes cross training, employment security and compensation on contingent on performance 4. Industrial relations o It focuses on unitary perspective (there is no conflict between the interests of management and employees) HPWS has usually been used with the terms such as: High Commitment management High Involvement Management High Investment HR systems Flexible work practices Flexible Production systems People Management All of these forms just represent the most appropriate form for modern competitive conditions. HCM vs HPWS: High performance work systems have been interchangeably used with high commitment management, although some believe that there is clear and important distinction between these two while some researchers also think that this distinction is linked with hard and soft HRM variants. Those who are in favor of using the term High commitment or involvement system or management argues that the term HPWS can be misleading in the absence of clear empirical tests regarding the actual link between system and economic performance. Then there is another division of: 1. High road work practices (involves attaining high commitment for long lasting) 2. Low road work practices (involves short term contracts, lack of employee commitment etc) Whereas those who are in the favor of using the term HPWS, states that concept of this type of system should not be restricted to commitment only, as it contains many other important components and aspects as well. Pfeffer (1998) considered following as the components of best practices: 1. Employment security
2. 3. 4. 5. 6. 7.
Systematic selection Self managed teams (decentralization of decision making) Comparatively high compensation/Reward on performance Reducing status differences among staff Extensive training, learning and development Information sharing (performance and financial)
All of these areas of practices are incorporated by an organization as employees are the source of gaining competitive advantage. The bundles of Relevant HR practices can work better and more effective than individual HR practices in achieving organizational goals The impact of HR bundles is more than the impact of individual HR practices This impact is based on the patterns of interactions among HR practices etc The importance of all of these components exists but they are parts of HPWS There are empirically proved links between HPWS and organizational outcomes such as mentioned by Subramony (2009) : HPWS bundles defined as empowerment bundles, motivation bundles and skills enhancing bundles They are strongly linked with Organizational outcomes; 1 standard deviation in HPWS = 4.6% increase in ROA and 4.4% decrease in turnover. IF EMPIRCAL EVIDENCES ARE PRESENT THEN WHAT IS THE PROBLEM? Even if we prove the link between HPWS and organizational outcomes, this relationship has to have significant Methodological and Theoretical explanation as well, which will be discussed in under Debates in HPWS literature: Debates in HPWS Literature: Linkage between HPWS and outcomes have been shown there are other important areas in which HPWs have problems, thus the display of the linkage between HPWS and outcomes is just a first step, what is more important to know is the mechanism (mediating mechanisms as per Purcell et al.,2003)through which takes place, thus the issues are known as: Issues of Theory Issues of Methods Collectively known as Black Box Now we will talk about Bundles of integrated HR practices, which are internally consistent, instead of isolated HR practices. This is the point when we move to Strategic HRM. Why are we talking about SHRM here, because it is important to discuss HR bundles while discussing HPWS, there are 3 kinds of HR bundles such as: 1- Empowerment enhancing bundle 2- Skill enhancing bundle 3- Motivation enhancing bundle These are such HR bundles that can result in empowerment, skill and motivation enhancement. And one important thing to remember that whenever throughout this discussion if the term HR practices is used, it is referring to HR bundles not single HR practice.
Thus one can conclude that through HR bundles the performance of the organization can be enhanced Weak Underpinning: HR Practices Black BOX Performance Outcomes Here we are talking about HR practices as Bundle, that may include various appropriate set of HR practices; skills, empowerment and motivation. While these bundles result into outcome not in performance, as the term performance is very limited but the term outcome can cover up performance in itself that is why we use the result of hr bundles as outcome. Ulrich (2000) states that: These HR practices, which are integrated closely with each other, create such HR Competence, which results into performance Although this framework is very strong yet it cannot be proved mathematically, because as said by Boselie et al, there has to be Solid Explanation or concepts that can be mathematically proved. Now here before explaining n discussing this issue, there are some prerequisites we should go through such as: 1- Universalism 2-RBV (Resource based view) 3-AMO (Ability motivation opportunity) According to Contingency theory, there have to be a best fit, such as: HR Policy (according to business objectives) + Business Policy = Business Performance While Universalism talks about best practices (based on Institutional theory, referring to similar environment sharing organizations). Contingency theory talks about Best fit according to the environment while Universalism talks about best Practices for similar environment sharing organizations. Now at this level, the discussion would be about these three theories or approaches and how their defenders have justified or explained their strong link or impact on organizational performance. Delery gave empirical evidences that because of universalism, performance can be improved While RBV, focuses on organizational level or within the organization more because organization always excels on the internal basis HPWS focuses, on empowering employee that is why it has a link with AMO also. Therefore, organization has to explore the opportunities and if organization does not give chance to employee for taking initiatives then how can his creativity and abilities be enhanced? Whenever you use any of the HR practices in your research, make sure that you need to provide relevant supporting literature for each practice.
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The concept of contingent pay is that, it is given on the basis of Performance, paying extra than the permanent pay of the employee. Utilitarianism instrument theory says that a good thing for one would or should be good for everyone else as well. All of these consensus issues are there because of the lack of correct theoretical frameworks (for example one of such gap can be filled by defining specific condition, needed for estimating the correct impact of these HR practices on organization) Therefore it can be concluded that there are basically two essential problems with HPWS: 1- Methodological Issues 2- Conceptual Issues There are three questions, for initiating the solution of above mentioned issues: 1- Weather this particular HR practice has been implemented in the organization or not? 2- To what extend the employees of the organization are exposed to them? 3- To what extent, each employee has its intensity at different levels? RESRACH TIP whenever you go for using a tool to measure your variable, try to see all of these three proximities in it and see why researcher has used this particular tool in his research (from where you are referring for using such measures) and also go through the methodology for knowing what samples would you need for using these tools. Human Resource Practices: There are basically three levels at which these practices are there in an organization: 1- Intended HR practices 2- Actual HR practices 3- Perceived HR practices (by the employees) The intended HR practices and Actual HR practice would be done by the organization but the impact of these HR practices would be determined by employees, as per their perception about the HR practices.
Issues:
The intention or purpose of todays discussion we can say that we have to create a
stream, which will have the consensus of the entire researcher, where it would not the purpose to Conform to everyone to one paradigm but to define the stream that can be followed for all paradigms. Casualty: It means A is causing B or we can say it in the form of a equation that Y= B1 + B2 + B3. Causality is always complex. Here this is the third debate or issue that starts here regarding HR practices or HPWS. Employee is the unit even at that black box, which is then transformed, transmitted and understood. As per the Unitarist assumption, conflict between organization and employee exists. The most important things in this regard are employees reaction about HR practices. Performance is the function of Perceive HR practices by the employee, not a result of intended or actual HR practices
Performance= f (employee perception of HRP) While one thing to be understood or reminded while this discussion is that our basic assumption here in this discussion is that all of the organizations are based upon Rationality or in other words it is basically rationality that is governing all of the organizational steps. There are various examples of PWS, where there are contradictory effects on employee. That is why it has been discussed even in literature about the importance of perception of employee that would determine the result of HRP. Review: There are three key issue that we have discussed in class up till now: 1- Weak underpinning (because of black box) 2- Methodological issues 3- Outcome: Organizational level outcomes and Employee level outcomes 1As per the first issue of weak underpinnings all three of the theories we have discussed earlier are not able to unlock the black box alone. 2for Methodological issues there further steps or components which are important such as: a- conceptualization b- Measurements: I-Presence II-Coverage III-Intensities c- Reliability: I- Valid source of information II- Signal Respondent III- Causality: i- Simple ii- Complex (Vertical + Horizontal) d- HR Policy: I- Intended Practices II- Actual Practices III- Perceived Practices 3 as far as the issue are regarding the Outcome following are further two elements in it: a- Organizational Level Outcomes: I- Financial Outcomes (such as ROI, Sales, Toubins Q) II- HR Related Outcomes (Attitude + Behavior) III- Organizational Outcomes (Productivity + efficiency+ effectiveness) b- Individual or Employee Level Outcome: I- Employee Gains II- Employee Reactions
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RBV
(Employees Perception about HPWs/HRP)
-Rare -In imitable -time bond -value addition -non substitutable
HPWS
(Including all practices & systems)
Organizational Outcomes A-Financial Outcomes: HR outcomes

(Linked with individuals outcome also)
(Book based indicators) -ROI -ROF -ROA (Market based indicators) -Profit to book value -Tobins Q
Data was collected by following Delphi Technique
Attitude:
-Satisfaction -OC etc
Organizational Performance
-Effectiveness -Efficiency -Productivity -Market Activity
Behavior:
-OCB -Absentees - TOI etc
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Thus the debates are: 1. Weak theoretical underpinning The issue of Black box 2. Methodological Criticism 3. HPWS and organizational Outcomes 1-Weak theoretical underpinning The issue of Black box HPWS literature has more focus on the values being created by HPWS not on the processes through which such value is created Most of the studies focused and talked about the Existence of these values but many few have tried to discover the black box Hesketh and Fleetwood (2006) mentioned that empirical evidences for existence of an HRM performance link, is inconclusive, a statistical association in and of itself, constitutes neither a theory nor an explanation Researchers have tried to unlock the black box by seeing the mediation of various mechanisms that are may be responsible for this linkage, in this perspective there are three commonly used theories within HPWS are: 1. Universalistic Versus Contingency theory; best practices debate stating that these are equally applicable to all organizations (one style fits all) or best fit debate arguing that relative to the circumstances(universalistic approach ignores, significant changes and differences in work, employment, employees interests and society as well as in organization) 2. Resource based view; like contingency theory, it views HPWS at organizational level talking about sources of competitive advantage creating value for organization within the organization. 3. AMO (Ability, Motivation and Opportunity); deals with HPWS at individual level, where discretion is enhanced impacting on organizational performance through participation of workers in decision making, including front line managers for collecting information, processing it and acting on it. P= f (A,M,O). there is the need of conditions when employee will perform well such as: i. They are able to do so (having required knowledge and skills) ii. They are motivated to do so iii. They have the required support and opportunities 2- Methodological Criticism: Another important issue comes when we talk about HPWS as a fit of the integration of various components such as HR practices etc, how to include those practices is still missing. There is no clear reason given that why to choose these HR practices That is why the primary issue with HPWS is linked with the lack of theory Along with the selection or choosing of HR practices, the meaning and understanding rather perception about HR practices again vary
For example talking about Contingent pay; whether it is to Control or Motivate employees? Who is going to decide on what basis? Thus commonality or consensus lacks in HRM dimensions Although some researchers have tried to identify some key main areas such as (Guest 2001) Systematic selection Appraisal Training and development Team work Communication Job design Empowerment Participation Performance based pay/promotion Harmonization Employment security Another important aspect is of measuring these HR practices Even if we reach to the level of agreement regarding the composition list of HR practices, yet their measurement ways varies, because of the meaning that varies from every researcher. Studies have used a range of different proxies for the same HR practice, they cane be measured by: 1. Its presence; a dichotomous scale which employs a simple yes or no 2. Its coverage ;a continuous scale for the proportion of the workforce covered by it 3. Its intensity; a continuous scale for the degree to which an employee is exposed to the practice or policy Apart from the existence of HRM in HPWS, what matters, is how these are used and what impact do they have on employees? Most of the studies that have been conducted with reference to HPWS are relying on qualitative data, depends upon surveys which are again dependent upon the Respondent. That is again another weakness of HPWS because it is not possible that one individual could have information and true assessment of all of the practices and their impact on every level in a diversified organizations/structures. That is why there has to be a distinction between HR policy (indented by management) and HR practices (actually implemented) To overcome this deficiency many researchers try to include Senior managers, line managers and employees to breech this gap Wright and Nishii (2007) had mentioned some sub processes and they have differentiated between: 1. HR policies (intendment ); refers to the practices planned by policy makers 2. HR practices; refers to the actually implemented practices 3. HR perception; refers to the meaning or perception of HR practices (implemented) on employee ultimately responsible for impacting his attitude and behavior, inflecting the organizational performance. That is why organizations have to be very careful and firm in assessing their HR practices in these aspects
The Causality and Validity of the research in HPWS is also questionable, because there is no scientific or specific systematic approach for quantifying HR practices Causality centers on giving information about events that preceded the phenomena HR practices and HPWS contain Complex Causality (that reflects the causal history of phenomena which includes structures as well as human agency) and it is important to note that in complex causality the additional information is not extra rather adds richness and explanation the concept and is absolutely necessary. That is why it needs to address and consider following points while measuring the phenomena: 1. Hermeneutic information that is related with the way the information has been intercepted, understood and made since to the workplace and results in actions 2. Then Information regarding the context in which the action has been initiated or to be initiated Another important reason behind these methodological issues is that HPWS system is an open system, while for scientific approaches there is a need of closed systems where things can be predicted because of their regularities. Why mathematical model could not be established in SHRM? As SHRM has also: Methodological issues: The first issue is can we measure various variables And more importantly another issue, one step backwards; can we truly Conceptualize those variable? Conceptual consensuses are needed before establishing the measure for measuring that variable, such as for: Market share Market growth Organizational performance etc As job satisfaction etc have same dimension in all organizations but their Meanings vary, which makes its conceptualization difficult. 3- HPWS and Organizational Outcomes: It is proffered in the literature to use the term outcomes, instead of performance, as outcomes can accommodate performance in it. There are outcomes at three levels: 1. Financial outcomes (profit, sales etc) 2. Organization outcomes (efficiency, productive and quality) 3. HR related outcomes (attitude and behavior) Legge (2005) suggested these outcomes at different levels also, such as: 1. Plant level 2. Business nit level 3. Corporate level 4. Employee Level Therefore it is again not possible to measure outcomes at all levels in a business with single kind or level of respondents. For why these HR practices should be done? Means that either for Performance or Outcome? Performance can be one of the outcomes
Levels of outcome can also vary such as: 1- Organizational level outcome 2- Employee level outcome (related to HR) etc This is how things are being over lapped on each other. That is why a discussion on THE DEBATES IN HPWS, would enable us for identifying Gaps, future directions and key areas of differences. HPWS and Employee Outcome: Rebalancing the HPWS debate The previous literature of HPWS has shown to neglect the role of employees by just focusing too much on the macro level and over all organizational outcomes. The view point of win-win situation and mutual gains is somewhat similar to the concept given in unitarist ideal where the thing good for organization must be good for employee also. Because of this HPWS literature has been questioned, as the job design or environment that is purposed to be created for mutual benefits, again goes in the favor of the employer who has invested and incurred cost in doing so for achieving benefits. According to Codard and Delaney (2000) the important aspect of employment relationship has been ignored in such assumptions where there is conflicting interests of employer and employee. There is no systematic research on whether such mutual gains are shared or not in real. Thus Clegg and Harley (1989 and 1999) gave an example as employee involvement and job discretion in HPWS is a myth that results at the end with stress, job insecurity and work intensification. The approach has also been accused of treating employees as objects which can be shaped, examined and modified to ensure business strategy achieved Therefore there is a need for further studies such as Win-win and Managerialist and more importantly there is lack of research regarding employees reaction to HPWS etc The approach has also been accused of treating employees as objects which can be shaped, examined and modified to ensure business strategy achieved it is undeniable that in previous studies the focus and attention given to the impact of HRM on organization is more than the researches on HRMs impact on Employees, therefore we cannot completely rely on these studies which have not been given equal importance to the reactions of employee regarding these HPWS. Some studies have also shown the possible contradictory effects on workers HPWS claims that there is high level of intrinsic reward and motivation at the same time giving higher level of stress and anxiety to employees as well. The primary objective of management is Control, which altogether changes all of the claims of employees wellbeing by the management, resulting in job losses and effort intensification (increased need of more effort). There is missing links between Organizational Success and Employee actions/reactions etc to conclude the complete above discussion the literature and its critics have been discussing the literature in two ways: 1. Advocates of HPWSManagement Centered and Organizational Outcomes 2. Critics Employee Centered and Employee Outcomes
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Understanding the HPWS

Introduction: HPWS are the organizations that use a fundamentally different approach from the traditional ways. Employer-Employee Relationship is the essence of HPWS It is believed to be a strategic source of providing sustainable competitive advantage HRM has attracted the attention of Economists as well who hardly gives any support for HPWS (above all x-efficiency theory has been adapted to this purpose) Whereas, HPWS has the explanation for HRM linking superior economical performance Preview of Paper Plan: This paper is covering following points: 1. Understand Superior Economic Performance of HPWS 2. Contribution of HRM and Economics in the domain 3. Explanations for integration of economics with organizational behavior 4. Characteristics of HPWS and Economic performance 5. Mainstreams of Organizational Economics and Mainstream HRM 6. Using Behavioral economics and organizational behavior to integrate it with HPWS 7. Essential reasons of Superiority of HPWS 8. Conclusion Lecture 6; Dated 01-04-2014 Articles extracts: The joint contribution of Economics and HRM: Economics is the mother of all sciences and it is also a fact that it rules all around the rationality of human beings as well. It is also a driving force for all of us, especially for business. Organizational behavior is also discussed by economics. Economics discusses productivity at macro as well as micro levels. Thus, it can be said that economics is always behind business. Because all of the results are ultimately been attempt for gaining economic benefits for the organization in the form of profits. That is why while talking about HPWS; it would be of great importance to discuss the economical perspective regarding HPWS. The criticism that has been presented in their article regarding economics is that it does not present any appreciating attempts regarding HPWS. HPWS revolves around the relationship between Employee and Employer, just like the way this relationship has been discussed in economics as well. But employee, employer relationship has been discussed differently in economics and HPWS.
And second common point between economics and HPWs is that both of them strive for achieving efficiency and effectiveness of the organization. Articles Theme: 1- HPWS takes organization towards Superior Economic Performance. 2- Contribution of HRM and economics towards HPWS (although there is hardly any economics literature talking about HPWS). *X-Efficiency theory states that employee always contributes less than his capacity towards the organizational performance. The plan of this paper being reviewed is to: Discuss the HPWS from main stream of both literatures. Also discuss the aspect of Behavioral Economics; financial behavior is one of its examples. Therefore, initially this paper discusses organizational behavior and behavioral economics and then both of them will be integrated. HPWS is also known as High Involvement organization or High Commitment results into high Performance of organization. These seven HR practices as per mentioned in article contributes towards HPWS, along with the four principles: 1. Employment security 2. Selective hiring of new personals 3. Self-managed teams 4. Pay to performance 5. Extensive training 6. Reduce status 7. Information Sharing By having these HR practices, the organization will turn into a highly involved organization and in such high involvement organization employee will: Feel responsible for and involved in its success Author has given real market examples to support his argument. Fundamental differences between HPWS and Economics: The relationship between employee and employer is special in nature which leads to sustainable competitive advantage. There are two kinds of approached or one can say that similar set of practices etc can be perceived as either control oriented or involvement oriented approach of the organization. Control Oriented Approach; believing that workers at the lowest level are only hands to perform the tasks and they are not required to think in decision making of work design and following tools are used to control: Simplified Standardized Specialized Supervision and Pay Incentives (based on the performance of tasks) Involvement Oriented Approach; according to Lawler (1992) Employees should be able to perform without a controlling supervision and employee does not exist for work only but also for: Improving work methods
Procedures Solving problems Coordination And for this purpose employees are needed to be Empowered and motivated. Through this mechanism organization can effectively and positively control employees performing behaviors. And this is also the main different point from economic approach. HPWS linked with Economical Performance: Huselid (1995) have provided evidences regarding the link between economical performance and HPWS, by stating that: The magnitude of the return on investment in high performance work practices or systems is substantial Evidences: Huselid had provided various evidences by linking the investment in human resource practices resulting or translating intro monetary or economic outcomes, such as: One standard deviation in HRP will result into 7.05% decrease in turnover intentions. 27,044 increase in sales 3814 increase in market value HPWS advocates towards Work FOR each other, not AGAINST each other. Therefore, on the basis of practical evidences that: HPWS Improved Organizational PerformanceSuperior Economic Performance. An important thing to note here that the set of these HR practices will vary accordingly and this will create the fit, this is the reason it is always HR bundles involved in creating such fit. HPWS Characteristic features: HPWS are the organizations that use a fundamentally different approach from the traditional ways, focusing in involvement, commitment of employees, the components of the fit or HR practices will vary from organization to organization. There are no agreed features of HPWS considered as standards yet there are essential characteristics of HPWs described by Pfeffer (1998) in the Human Equation: 1. Employment security 2. Systematic selection 3. Self managed teams (decentralization of decision making) 4. Comparatively high compensation/Reward on performance 5. Reducing status differences among staff 6. Extensive training, learning and development 7. Information sharing (performance and financial) HPWS is not as TQM but they can work together as TQM has a limited perspective of employee involvement where in HPWS, restricting and redesigning takes place by emphasizing employees. It is different from Control oriented organization where work is simplified, standardized and specified and motive employees to get work done by them in a good manner
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While in Involvement oriented organization of HPWS, even at the lowest levels are not responsible for performing work but also contributing in improving work and methods etc In control oriented organizations there has to be a continuous control over the employees to get work by them in the desired way But in involvement oriented organization HPWS workers are expected to work in non programmed and changing circumstance without any controlling supervision, where they act as the owners of the organization Performance Superiority: Through the empirical evidences it has been shown in the literature that HPWS organizations outperform other traditional organizations. But limited studies had attempted to show the impact resulted in terms of financial performance Through the summary of some of the key investigations and their empiric evidences displaying the impact of HPWS on financial aspect of organization performance is mentioned here: Guest showedHPWS results in decreased turnover, Increased productivity ultimately enhancing financial performance of the organization Other may include the work of Pfeffer, MucDuffie, shaw, Ichniowski and Prennushi and others representing the same result phenomena Some studies (like MucDuffie) about bundles of HR practices and productivity There can be plenty of such citations and evidences mentioned in the literature but these were just to show that there is a link between organizational financial row economic performance with the HPWS 1- Mainstream Organizational Economics: If we ask that the mainstream of economics will help us explain superiority of HPWS then the answer would be NO! Because of several reasons: Mainstream economics is designed to study behaviors in Control oriented organizations with clear and define patterns and relationship, not present in HPWS that easily Much of the Organizational economics or personnel economics discuss how to give incents to the employee to gain the desired behavior from them. Personnel economics discusses the advantages and disadvantages of compensation methods, focusing how they will affect the behavior of the employee. Mainstream economics may be help in discussing hybrid organization (combination of control oriented and involvement oriented organizations) but it ignores the spiritual, psychological and social aspect of the organization that are very much critical for HPWS Although John Tomer (author of the article) had shown practical evidences in his article that both (Economics and HPWS) of these are linked and impacting organization as well, yet the main stream of economics does not support the superiority of HPWS, because: Economics talks about Control Oriented Organization While HPWStalks about Involvement Oriented Organization
And that is why as per Economics; variables which cannot be measured cannot be managed also. it could be possible to create a combination of involvement + control oriented approach that may help and support HPWS.
2-Mainstream Human Resource Management: Before discussing this perspective, it is important to note that here we are talking about simple HRM not SHRM, thus here by HRM we mean traditional HRM approaches, which also inclines towards Control Oriented Approach. And it also revolves around Agency theory regarding Employee, Employer Relationship. Therefore, even at this mainstream of HRM, we find no such link as well. Traditional HRM is commonly known as Personnel management deals with the variety of people related activities which are required in a controlled oriented organization. It deals with the basic and traditional HR functions of: Recruitment and selection Training and development Performance appraisal Compensation Labor relations It overlooks the employer and employee relationship as a translator or transitioning to the Competitive Advantage
Beyond the Mainstream: Developing an understanding of HPWS Behavioral Economics We would try to build this link between HPWS, through Behavioral Economics. For the basic understanding of HPWS superiority it is important to start with xefficiency theory although it is not oriented with HPWS yet it can help in the understand of HPWS because in the further researches, the areas which was highlighted by this theory that normally employees exert less efforts than their capacity gave room to other researchers who talked about building trust and cooperation and other such efforts to result enhanced and increased x-efficiency. Organizational Behaviors: There has been the highlighted importance of such innovative HR practices that will contribute to improved economic performance but three conditions are a must: 1- When employees posses the knowledge and skills, managed does not have 2- When employees are motivated to apply those skills and knowledge 3- When these knowledge and skills play the contributing role towards the strategic objectives of the organization As noted by MacDuffie that employees in HPWS are more likely to exert more efforts and hard work than employees in traditional organizations. And these hardworking and efforts are exerted because of: Workers higher commitment and involvement Contingent compensation Peer pressures from self managing teams
They are better directed Because training and job rotation practices have enhanced the opportunity to learn Existence of Trusting relationship Teamwork Innovation Cooperative and creative environment Quality circles etc In short because of the overall Attractiveness of HPWS And because of all of these reasons it saves the organizational overhead administration costs and other costs related with alienated workforce by reducing the employment disputes and saving on direct communication and resulting in direct and indirect cost saving for the organizations. For effective use and results of HR practices and systems, OB talks about those three required conditions for those HR practices, which already contain the potential to contribute in organizational performance. 1- When employee have the knowledge, skill to manage task 2- Employees are motivated to apply their skills and knowledge in discretionary efforts. 3- MISSING HPWSis something that contains these conditions by default. Because the objective of these conditions is to help employees through their skills, motivation and knowledge in their decision making and job design. And one reasons for the presence of such conditions in HPWS is that because of the Peer pressure employee have to develop and learn such knowledge and skills required for effectiveness. In HPWS as per the part of employees or as per their perspective, they contain a very clear conceptualization regarding how much smart efforts are required for the output, they require. Integrating Organizational Behavior with Behavioral Economics: Higher efforts by the employees are highly related with employee and employer relationship. Employees in more control oriented organization with more hierarchical layers experience more stress, frustration and psychological failures because of the sense of part of the organization instead of whole organization. This can result in counterwork behaviors as well as researchers states that when employees are given less control and empowerment than their abilities. That is why HPWS starts by taking care of the higher level needs of the employees such as Self Actualization, providing that psychological energy for organizational performance. HPWSs employee put more efforts than in control oriented organizations. Workers in traditional control oriented originations will experiences: 1- Stress 2- Frustration 3- Psychological failures 4- Short time perspective 5- Internal conflict etc
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Contrary to this condition resulted in control oriented organization, when an organization enhances and enables an individual with Self Actualization (Self Actualization is the state when person is not recognized by his works, rather his work is recognized by him). Then he will put more efforts for organizational success. Worker Motivation Model: In this model workers choose which level of efforts is needed to get the maximum benefits. John Tomer (1987) has presented his model having four dimensions: 1. The match between an individual and the characteristics of both job and the organization 2. The existing structure and supervision of the job. 3. The existence of clear, meaningful goals for jobs and the organization. 4. The nature and enforcement of the implicit contract between employer and employee. There is the existence of considerable control on how work is done, to acquire skills. Employees get a sense of Ownership when environment allows them to make best use of their skills, knowledge and abilities, results as a motivating factor as well. Two kinds of Motivation: The essence of superiority of HPWS relies over the distinction between these two kinds of motivations which is also resulting two different kinds of employer-employee relationships: 1- Agent Motivation (that is an economic perspective); do as agent whatever has been asked by the principal 2- Deep Ownership Motivation U-bounded-connected Ownership); no one is agent and principle rather everyone has to contribute as owners. Such employees are the key indicators of Experiencing Genuine Enthusiasm, empowerment and inspiration. With affective commitment not with calculative commitment that happens by emotions, which is not a result of external neither entirely internal factors rather because of the relationship between employer and employee. But this kind of motivation is not understandable for Economists as this kind of motivation does not involve external control, simple responsiveness to standard rewards and penalties and because it involves the concept of high human needs (humanistic psychology) not fitting well with the economics. These are distinctive nature of employee and employer relationship. Why is it difficult for economists to understand the deep ownership motivation? The reason being is because the agent motivation is structured as compare to deep ownership motivation. Through agent motivation, satisfaction of lower needs are rewarded which is the most familiar form of reward for economists. While in deep ownership motivation, employee feels high psychological power. Organizational Relationship as Capital: As discussed above the deriver of deep owner motivation is the relationship that has been build, from which the organization develops performance capacity from its human capital or organizational capital or in simple words social capital having the capital or asset like quality but is much more effective than any other asset or capital of the organization. Therefore it can be said that organizational productivity does depend on its Social relationships, because of this reason HPWS significantly invest in organizational capital. Other similar concepts may be
mentioned here such as connective capital and others intangible assets or capitals, which are east understood, least prone to measurement and least considered by management as well. Deep motivation is neither extrinsic or intern sic, rather it is based on employee and employers relationship. And this is how this individual factor of production (as per economic aspect) becomes much more beneficial than any other factor of production. Organizational Capital: Connective capital means Relationship It supports learningConnective Capital Improved performance. Results in operating performanceOrganizational Capital Concept linked with organizational capabilities The performance Difference: Structure of interaction and information transfer is the difference that derivers or defines how and where to invest in (in which kind of capital). Making successful organizational investment in HPWS for Competitive advantage as: Intangible Unique Firm Non substitutable Rare etc It is very important to know that all of these HPWS changes and modifications and transitions are not easy rather more unique, complex which is not easily taken by others. That is why never think of having Superior performance in isolation, it only works in combination. And for integration always include internal as well as external fit only then an organization can achieve Competitive Advantage. Slow Diffusion There are many other reasons that why HPWS have not been implement even in UK as they have not accepted this system because diffusion of HPWS is neither been quick nor extensive even in US and UK. Or even those organizations which are following it are either doing it not properly or in partial manner. It is not like putting and plugging in HPWS in to your organization rather it is a process of profound or deep, in rooted change and transformation (not transactional, means shifting the approaches or paradigms that is not so easy; from control oriented to involvement oriented approach) of the relationship between employee and employer. As this kind of change involves the change of Mental modeling as well this is again a difficult process. It is impossible to implement HPWS in the absence of mutual trust and respect but it is reality that trust is missing in many management relationships because of agency theory Other problems or barriers in implementing HPWS may include: 1. High initial training costs 2. Satisfying short term oriented investors
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3. Managerial inertia (inaction) and resistance due to their conservative instincts and uncertainty 4. Existing relationships, networks and contracts (forward and backward) 5. Other institutional barriers such as legislations and laws. Conclusion: A form of HPWS involvement and employee employer relation based Employees are members not just workers and are owners Organization will support employees in their high need satisfaction; Self Actualization Promote deep ownership motivation HPWS workers are more effective than traditional workers HPWS requires an internally coherent, supportive system
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Lecture 7; dated 8th April 2014 Bridging theory and practice by Peter Boxall Author believed that the application of HPWS in Manufacturing Sector can be measure the impact and relation between HPWS and performance of manufacturing firms. At the same time its application also exists in service sector HPWS is broader stream, so for discussing it with precision we need to indentify that either this system is based upon: Empowerment Based Perception based Motivation Based etc By defining one basis we can see the link between Management intention and Organizational outcomes But the problem prevails, that what would mediate in this relationship? For instance if these mediators are perception based, then it would vary from everyone, because the perception of everyone would be of great importance as following: 1. Strategic Level Intended practices 2. Line Management Level Executing or implement practices The perceptions of both levels would be important for the success of the planned HR practices. In HPWS, execution would be by line manager and therefore he will be transformed to the Specialist or consultant as per need.
It is important to define the concept whenever you start discussing it
HPWS and Organizational Performance
Meaning and significance; of HPWS to build a high skilled or high core economy This paper will outline the core features of HPWS, including wider managerial and governance process in which they are embed Emphasis the specific practices in such system head to be customized to industry and occupational conditions Moving towards Configuration Approach from Universalism by building some specific skills would be customized to make them firm specific, only then the HPWS of one organization would work as a source of its competitive advance, not been takeable by others. Following are the possible nature of Job in Organization: Those firm specific skills which are contributing in Fulfilling the Strategic objective but are not Rare results in Configuration Based Job Neither they contribute in fulfilling strategic objectives nor they are rare would be Compliance Based Job Are fulfilling both strategic objectives and are rare as well then such job would be Commitment based job
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In all of these HR practices are present but as per their conditions, needs and requirements, there HR practices would be customized.
There are three main dimensions of Article: 1. Explanation 2. Features of High involvement Work system 3. Developing firm Specific HR practices In an era of economic globalization each group would need specific HR and which will be applied to a group of people Different clusters are there to be linked with specific factors etc Thus there would be different layers of HPWS, as you have to customized and configure as per the requirement of employment etc HR models or systems are clusters of work, jobs and HR practices specific for their particular cluster. Two main Clusters of Work or practices in involvement work system, can be: 1. Homehaving strategic unit 2. Operating Operative unit While the key focus in this paper is the way production workers are managed in Manufacturing The topic of HPWS is concerned with How HRM can be used to improve performance in all kinds of organization with various kinds of workers In this article we, highlight two stets of issues that have gained prominence under the rubric of HPWS: 1st Issue: Whenever an organization cannot align or configure the HR practices as per the competencies then organization should do one of the following as per the appropriateness: 1. Outsource 2. Explore Historic Path and then modify (build those competence) the previous weakness and improve (revitalize/refresh) Thus the discussion would be about:
Why HR practices change? What HR policies and practices have to be changed?
2nd Issue: How HR system can be improved to improve organizational performance? For answering these kinds of questions, these mediators may not be the attitudes but also: Belief Attitude Behaviors etc Because these factors will influence how HR practices are translated into performance and in this way we can see or rather attempt to see how and why these relationships between HR practices lives with performance of organization. According to the author if the effectiveness or the impact of HR practices, make organizational performance depended upon it, as how individuals feel about such HR practices etc, their role would be of critical importance, which is the focus here Followers in this link. HPWS Why and What Questions: By Hawthorne studies the focus was directed towards: How to make productive job more motivating? And enhance employee commitment? Because of too much attention towards the quality techniques etc, author stated that too much focus has been given to the internal operations. Concept of Environmental Stimulant: Western organizations are moving towards Japanese concept by moving from traditional fordism or tailorism to worker involvement based organization or management that creates problem for them. Because as author has mentioned in his article that in such organizations where there is a high level of interdependence of workers, such HPWS can be counterproductive but otherwise when workers are not interdependent, Implementing HPWS would result in competitive advantage. So it is important to know the cultivating or fertilized context for implementing HPWS. The element of technology; the extent to which an organization can avail benefits from technologies also contributes in increasing the organizations competencies such as many organization are using AMT (advance manufacturing technology) includes technologies such as: o CAD (computer aided design) o Robotics o CNC (computer numerical control, machine tools o EDI (electronic data interchange) By proper incorporation of such technologies organizations can attain short term and long term benefits from them accordingly. Productivity improvements also have following derivers: 1. Capacity for learning 2. Greater Empowerment to learn more (trail and errors) All of this discussion si about that investing HPWS would be beneficial in: Low tech
Labour intensive manufacturing With little use of AMT And organizations that have either outsourced their operations or so, have to adapt these HR practices as per their industries and work processes or nature of work. High performance/involvement/commitment work systems? High involvement terminology is more appropriate for this system as it defines our focus on commitment and skills which enhance employee and operating performance. There would be two commonly heard terminologies, for understanding their brief description is mentioned below: Engagement (scope till the performance/outcome) Involvement (involving hearts and minds; voice + practical involvement in decision making) In all industries we cannot apply this model of HPWS such as in Semi conductor manufacturing companies etc because of high level of skills and specialization. It is important to understand that in HPWS we give autonomy and empower employees to motivate them but in such specific organizations as mentioned here, employees are already highly motivated thus there is no need of implementing such systems that will result in motivation, as it already exists.
Follow page number 6-10 from Article-lecture 4
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Lecture number 1: Interaction is the only instrument to learn.

HPWSs notes by Noureen Mushtaq

HPWSs notes by Noureen Mushtaq

HPWSs notes by Noureen Mushtaq

HPWSs notes by Noureen Mushtaq

HPWSs notes by Noureen Mushtaq

2-What Employee Need?

Accountable or Empowered person Reflecting Actual Performance

HPWSs notes by Noureen Mushtaq

HPWSs notes by Noureen Mushtaq

HPWSs notes by Noureen Mushtaq

HPWSs notes by Noureen Mushtaq

Core Management and Core process

There is nothing invested in T& D that cannot be measured

HR Deliverables: -workforce Mindset -Technical skills -Workforce behaviors

HPWSs notes by Noureen Mushtaq As a result this system will formed

through the path and will enhance HR performance

HPWSs notes by Noureen Mushtaq

HPWSs notes by Noureen Mushtaq

HPWSs notes by Noureen Mushtaq

HPWSs notes by Noureen Mushtaq

Lecture 5, Dated: 25-03-2014

HPWS Debates in Literature

HPWSs notes by Noureen Mushtaq

HPWSs notes by Noureen Mushtaq

-Rare -In imitable -time bond -value addition -non substitutable

Organizational Outcomes A-Financial Outcomes: HR outcomes

Data was collected by following Delphi Technique

HPWSs notes by Noureen Mushtaq

HPWSs notes by Noureen Mushtaq

Understanding the HPWS

HPWSs notes by Noureen Mushtaq

HPWSs notes by Noureen Mushtaq

HPWSs notes by Noureen Mushtaq

HPWSs notes by Noureen Mushtaq

HPWS and Organizational Performance

HPWSs notes by Noureen Mushtaq

Why HR practices change? What HR policies and practices have to be changed?

Follow page number 6-10 from Article-lecture 4

HPWSs notes by Noureen Mushtaq

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