The impact of high-performance work systems on firm performance: The moderating effects of the human resource function’s influence

2015 ◽  
Vol 22 (3) ◽  
pp. 328-348 ◽  
Author(s):  
Dae Yong Jeong ◽  
Myungweon Choi

AbstractWith data collected from 632 manufacturing firms in South Korea, we investigated (1) the relationship between high-performance work systems (HPWSs) and firm performance, and (2) the moderating effect of the human resource (HR) function’s influence on the relationship between HPWSs and firm performance. Our findings showed the existence of both the main effect of HPWSs, supporting the universalistic perspective, and the moderating effect of the HR function’s influence, supporting the contingency perspective. Based on the findings, we concluded that HPWSs can be regarded as universal or best practices; at the same time, the presence of an influential HR function may intensify the effect of HPWSs on firm performance. This study contributes to the debate over the respective merits of the universalistic and contingency perspectives by showing that the two perspectives are not necessarily incompatible; rather, they can be complementary.

2020 ◽  
Vol 10 (4) ◽  
pp. 5-22
Author(s):  
Emmanuel Oppong Peprah ◽  

Purpose – This paper investigates the impact that High-Performance Work Systems (HPWS) have on Employee Engagement and the moderating effect of Organizational Justice on this relationship. Research methodology – By the usage of a quantitative research method, data gathered from 251 employees of Professional Service firms are analysed with SPSS. Findings – This study found that there is a positive relationship between HPWS and Employee Engagement. It also found that Organizational Justice moderates the relationship between the two. Research limitations – Data was only gathered at the employee level making the interpretation of HPWS to be how employees perceive it. Hence a further study at the firm level as well as cross-sectional analyses will be needed in the future. Practical implications – Management of firms should avoid a ‘one-size-fits-all’ approach in the administration of HR policies and should rather encourage tailor-made treatment for individual employees of the firm. Unfairness is encouraged if the firm is after employee engagement. Originality/Value – This study is one of the first to investigate the moderating effect of organizational justice on the relationship between HPWS and employee engagement and the first to advice firm managers to be unfair in their dealings with individual employees


2017 ◽  
Vol 25 (5) ◽  
pp. 695-710
Author(s):  
Amina R. Malik ◽  
Laxmikant Manroop ◽  
Pankaj C. Patel

AbstractThere has been growing scholarly interest in the relationship between high-performance work systems and firm performance. Yet, limited research attention has been given to the impact of high-performance work systems on firm performance during skills shortages. In this study, we empirically examine the influence of high-performance work systems on firm performance in the midst of skills shortages. Results from a study of 211 US firms with 50 or more employees demonstrate that internal skills shortages are not related to firm profitability. Findings further show that the use of high-performance work systems is more detrimental to firm performance for firms when they face an internal skills shortage. These results are discussed and future research directions are offered.


2021 ◽  
pp. 1755-1764
Author(s):  
Fatimah Mohamed Mahdy ◽  
Asia Yagoub Alhadi

This research paper aims to study the impact of high-performance work systems (HPWS) according to the AMO includes three human resource management practices which are (Ability-enhancing human resource management practices, motivation-enhancing human resource management practices, and opportunities -enhancing human resource management practices). The authors select a random sample of 400 individuals from 10 banks in Saudi Arabia, Egypt, Sudan to prove the validity of the hypotheses; The study found a set of results and one of them indicate that there is a significant positive relationship among high-performance work systems according to the AMO model on the results of human resource performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jola-Ade Ashiru ◽  
Galip Erzat Erdil ◽  
Dokun Oluwajana

PurposeThe purpose of this paper is to examine the influence of high performance work systems (HPWSs) on employee voice, employee innovation and organization performance in a service organization. The study examines the mediating roles of employee voice on HPWSs and organizational performance.Design/methodology/approachAn online survey was distributed to 600 professional staff and a total number of 360 respondents returned the survey. The hypotheses are tested through the use of the variance-based structural equation modeling (SEM) technique.FindingsThese findings indicate that the HPWS has a significant impact on employee innovation and organization performance. The empirical evidence does not support the relationship between HPWS and employee voice and also employee voice does not mediate the relationship between HPWS and organization performance in a human resource (HR) service organization.Research limitations/implicationsEmployee voice does not empirically mediate the relationship between HPWS and organization performance; other factors can be further explored. Future research should employ other theories of strategic human resource management (SHRM) to further explore more factors that influence the HPWS on employee innovation, employee voice and organization performance.Practical implicationsThe organization should respond to employee voice through aforementioned rather than the use of traditional, strategic and operational methods or tools believed to be the best approach to employee issues.Originality/valueThis study builds a solid empirical investigation that contributes to the HPWS existing body of knowledge. It is also significant as it is one of the few studies that examine the link between HPWS and job outcomes, like employee voice, employee innovation and organizational performance, in an HR service organization and also employee voice as a mediator on HPWS and organizational performance.


2009 ◽  
Vol 22 (4) ◽  
pp. 319-332 ◽  
Author(s):  
Chiung-Wen Tsao ◽  
Shyh-Jer Chen ◽  
Chiou-Shiu Lin ◽  
William Hyde

The controversial findings of both high and low performance for family-controlled public firms offer a unique context in which to study the moderating role of high-performance work systems (HPWS) on founding-family ownership effects. In a sample of Taiwan-based public firms, founding-family ownership was found not to be associated with firm performance. However, when the level of HPWS facing family ownership was accounted for, the results showed that the relationship between founding-family ownership and firm performance is significantly negative for companies with lower levels of HPWS but is significantly positive for companies with higher levels of HPWS.


2016 ◽  
Vol 24 (5) ◽  
pp. 730-747 ◽  
Author(s):  
Subhash C. Kundu ◽  
Neha Gahlawat

AbstractThis study investigates the diverse performance outcomes related to the bundles/components of high-performance work systems on the basis of ability–motivation–opportunity model. Using the primary data from 563 employees of 204 firms operating in India (collected during the time period between March, 2012 and January, 2013), the study has indicated that employees’ perceptions regarding the applicability of ability-enhancing, motivation-enhancing, and opportunity-enhancing human resource practices result in enhanced affective commitment and superior firm performance. The results have revealed that affective commitment fully mediates the relationship of opportunity-enhancing human resource practices with firm performance and partially mediates the relationships of ability-enhancing and motivation-enhancing human resource practices with firm performance. The study contributes in unlocking the ‘black box’ related to the high-performance work systems and firm performance relationship by stressing upon the importance of affective commitment as a mediator. Managerial implications and directions for future research are also discussed.


2010 ◽  
Vol 49 (6) ◽  
pp. 977-998 ◽  
Author(s):  
Claire Armstrong ◽  
Patrick C. Flood ◽  
James P. Guthrie ◽  
Wenchuan Liu ◽  
Sarah MacCurtain ◽  
...  

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

Purpose This paper examines the relationship between business strategies and employees’ intention to leave (ITL), through the mediating role of high-performance work system (HPWS). Design/methodology/approach To test their hypotheses, the authors used self-administered questionnaires. They drew up a list of 600 organizations of different nature and structure operating in India that were listed by the Federation of Indian Chambers and Industry. They approved 192 organizations and sent the surveys to 960 executives. They aimed to receive a minimum of one response from an HR executive and two from non-HR executives from each one. In the end, they received 572 useable responses. Findings The study found that high-performance work systems (HPWS) mediate the relationship between business strategy and employees’ intention to leave (ITL). The two effective approaches were “quality management” and “innovation strategy”, both of which reinforced the adoption of HPWS. But a third approach, a “cost-reduction strategy”, was not shown to be positively correlated with HPWS. Another important finding was that the influence on ITL did not vary across the types, or ownership structures, of the firms. Originality/value The data has lessons for HR departments. First, it shows it is advantageous for firms hoping to retain more employees to invest in HPWS that are consistent with the values of their organizations. A second practical finding is that firms need to take into account the Indian context. A third lesson is HR practitioners should make strong efforts to communicate the goals of the HPWS to employees The study also shows firms adopting cost-reduction strategies should focus more on treating employees as resources.


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