Assignment #

Submitted by;
Name: Ahmed munir
Reg# 1431-116023
Course: Human Resource Management

Submitted To;
Mr. Azhar Naeem
Fundamental principles of strategic human
resource management:
One of the fundamental principles of strategic human resource
management is to evaluate how organizational performance is
influenced by the way employees are managed.

Procedure:
To support this assessment, various measures have been taken
in human resource practices that have been found to improve
employee effectiveness and to expect higher levels of
organizational performance.
Some of these measures include high-performance work
systems, high-commitment work systems, high-involvement
work systems, and high-performance human resource
management.
No matter how much these systems may differ in the approach
of enhancing the employee effectiveness, their conjoint track is
that organizations can achieve high performance by adopting
practices that recognize and leverage employees’ ability to
create value .
To create maximum impact these practices are most effective
when they are implemented in bundles because of their mutual
effects on performance.

High Performance Work System:

HPWS are a specific combination of HR practices, work
structures, and processes that maximize employee knowledge,
skill, commitment, and flexibility – with the aim of enhancing
employee effectiveness. High-performance work systems are
complex structures, and are formulated out of several
interrelated components. Characteristically, the system is
created with planning empowered work teams to carry out key
business practices. All the Team members are selected and
trained on technical, problem-solving, and interpersonal skills.

All the components of the HPWS are important in terms of how

they help the entire system to function. The effectiveness of
HPWS requires the system to have both the internal and
external fit. To make sure the system if fit internally, all the
component’s should support and complement each other like
the leadership team should work in tandem with the human
resource practices and the work flow should be supported by
well-developed technology and when the system is aligned with
the competitive urgencies of the organization like enhanced
employee satisfaction, well developed company values and
competitive challenges the system on a whole it achieves
external fit as well. There are two fundamental mechanisms on
which high-performance work systems influence performance
outcomes and these are based on human capital and skill on
the one hand, and motivation and commitment on the other.
Over the period of time various studies have been performed to
understand the direct effect of High performance HR practices
on the performance of different functions in an organization.
Also studies have been performed to understand the indirect
effect of HPWS practices by influencing employee attitudes and
discretionary behaviors. HPWS have a significant and a positive
impact on attitudes or behaviors of employees and these
attitudes subsequently create what is called the organizational
citizenship behavior (OCB) of the employees. These studies
have also concluded that the functional performance was
affected both directly by HPWS and indirectly through
organizational citizenship behavior (OCB) of the employees. The
effective implementation of high performance work systems
benefits both the employees and the organization. Employees
are found to be more involved in the organization, experience
better growth and satisfaction, and become more valuable as
contributors. The organization also benefits from high
productivity, quality, flexibility, and customer satisfaction. A
multi-dimensional change initiative is required from all the
stakeholders of an organization to implement high-performance
work systems. This provides an organization with a sustainable
competitive advantage. It is very important for an organization
to consistently measure and evaluate the satisfaction and
commitment of its employees. If the employees are not
performing up to the expectations of the organization, it’s very
possible that they not very satisfied with their jobs and they are
not committed to the organization. The reason for their lack of
satisfaction and commitment can most likely a result of an
underperforming HR practice or system of practices. Therefore
an organization should fix the systems if it wants to improve
attitudes, behaviors and performance.