High-Commitment HRM

Chapter 9 Strategic Human Resources Baron & Kreps

What is High-Commitment HRM?

A general catch-phrase for an ensemble of HR practices that aim at getting more from workers by giving more to them

Goals of high-commitment HRM

Employees work for the best interests of the organization Employees are flexible and willing to take on different assignments Employees work with their brains as well as with their hands.

The Means of High-Commitment HRM

Employment guarantees

Egalitarianism in word and deed

Emphasis on self-managing teams and team production Job enlargement and enrichment Premium compensation

Incentive compensation based on team, unit, or firm-wide performance

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The Means of High-Commitment HRM (Contd)

Extensive

socialization and training

Extensive job rotation Open information Open channels of communication A strong culture

Extensive screening
Strong emphasis on ownership
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Connecting the goals and the means

Four concrete steps:
1.
2.

Recruit employees who are capable and inclined to provide consummate effort
Train employees to fill in skill gaps, to work in teams, and to give necessary background about organization Enable employees by giving information, opportunity, and authority required Motivate employees to be flexible and to use their heads and hands
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3. 4.

Three flavors of High-commitment HRM

Total Quality Management, TQM Open-Book Management, OBM The Traditional Top-Tier Japanese Organizations: High- Commitment ILM

One Size Does Not Fit All: Is highcommitment HRM for you?

High-commitment HRM: a very wellintegrated system of highly complementary individual HR practices, leading to an ideal workforce The cost may be substantial Difficult to change from standard forms of HRM to high-commitment HRM
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Maintaining High-Commitment HRM

High costdoes your company compete on cost or quality? Cost benefit ratio also depend on the external environment on workforce demographics Giving employees autonomy may also bring inefficiency to the firm

Achieving High-Commitment HRM

Moving to high-commitment HRM from more traditional approaches involves

changing expectations and attitudes Significant costs

Sources of potential resistance

Sources of potential resistance

Increased employee pressure & stress

Dont know or misuse the autonomy given

Resistance from first-line supervisors, middle managers, unions, labor lawyers
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Achieving High-Commitment HRM (Contd)

Recommendation to help overcome resistance - Profit sharing Simplicity and consistency in messages communicated through HR practices Flattering stories in the business press Promise of greater autonomy, security, training, information or other benefits to line employees.
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The Bottom Line

Evidence shows that the highcommitment HRM is beneficial to firms High-commitment HR is an investment, and as with all investments, the payback doesnt come instantaneously or for free It isnt for everybody or for every organization

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