Indian study shows high-performance work systems (HPWS) mediate the relationship between business strategy and employees’ intention to leave

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.

High-Performance Work Systems in a Cross-Cultural Context

The strategic human resource management field has increased the contributions, comparing cross-cultural aspects, mainly involving the East and West cultures, but there is a gap regarding on knowing how the implementation practices impacts and how they are impacted by cultural differences. Through a qualitative contribution, this research was developed in a multinational company in Sweden with a subsidiary in Brazil. The focus is to answer the questions: How high-performance work systems are applied in different cultural contexts? How do cultural dimensions affect high-performance work systems' adaptation? The findings have shown that strong organizational cultures could overlap country differences, but adaptations could allow innovative exchanges and raise employee commitment and participation. High-performance work systems are practices that could be used in cross-cultural territories, but not without considering cultural and local adaptations. After institutionalized, the local adaptation could be able to enlarge organizational performance.

A conditional process model linking high-performance work systems, collective turnover, collectivist culture and organizational performance

PurposeThis study addresses three research questions: (1) do high-performance work systems (HPWS) enhance organizational performance by reducing collective turnover? (2) does a collectivist organizational culture moderate the link between collective turnover and organizational performance? (3) does collectivist organizational culture act as a boundary condition for the mediating effects of collective turnover in the link between HPWS and organizational performance?Design/methodology/approachA conditional process model linking HPWS, collective turnover, collectivist culture and organizational performance was developed and examined with longitudinal data collected at three different time points from 350 firms in South Korea.FindingsThe positive indirect effects of HPWS on organizational performance through collective turnover were significant. Regarding collectivist culture as a moderator, the negative relationship between collective turnover and organizational performance was stronger when the collectivist culture in the organization is high. In addition, the positive indirect effects of HPWS on organizational performance through collective turnover were also stronger when the collectivist culture in the organization is high.Originality/valueThis study provides a significant contribution to the areas of HPWS by reshaping the conceptual mechanisms in which HPWS enhance organizational performance. Further, it explores the significant role of collectivist culture as a moderator in the relationship between HPWS, collective turnover and organizational performance.

Employee high-performance work systems-experience attributions of well-being and exploitation: a multilevel study of Greek workplaces

PurposeThis paper aims to theoretically propose and empirically test a research framework that investigates the relationship between high-performance work systems (HPWSs) and organizational performance through the serially mediating mechanisms of employee HPWS-experience attributions of well-being and exploitation, attitudes, and behaviors.Design/methodology/approachMultilevel structural equation modeling through Mplus was applied to a sample of 1,112 employees working at 158 Greek organizations.FindingsThe modeling's findings indicate that the serially mediating mechanism of employee HPWS-experience attributions of well-being, attitudes and behaviors improves organizational performance. Meanwhile, the serially mediating mechanism of employee HPWS-experience attributions of exploitation, attitudes and behaviors was found to weaken organizational performance.Practical implicationsThis study shows that, to improve employees' well-being and weaken employee exploitation through employees' HPWS-experience attributions, senior and line managers should gain competencies and communication skills through training and development programs, successfully communicating HPWS messages to employees.Originality/valueThis study may be the first study to elucidate the serially mediating mechanisms of employees' well-being and exploitation through employees' HPWS-experience attributions, attitudes and behaviors in the relationship between HPWSs and organizational performance.

Composing the same song: when and how high-performance work systems can stimulate proactive behavior

PurposeDrawing on signaling theory, the purpose of this study is to explore how high-performance work systems (HPWS) interact with leader–member exchange (LMX) to predict employees' proactive behavior and job engagement. Moreover, the present study also proposes the mediating role of job engagement in the interactive effects of HPWS and LMX quality on proactive behavior.Design/methodology/approachThe data of this study include 228 customer-contact employees and 44 store managers from chain store enterprises in the service sector in Taiwan. The proposed models were tested with hierarchical linear modeling and Monte Carlo simulation.FindingsThe results show a significant interactive effect of HPWS and LMX on job engagement and proactive behavior. In addition, job engagement serves as a vital mechanism linking the interactive effect of HPWS and LMX quality on proactive behavior.Originality/valueThis study uses signaling theory to unpack the question when and how HPWS can be more influential on employees' proactive behavior. In particular, the positive effect of HPWS on proactive behavior is more prominent only when employees enjoy high LMX quality with their respective line managers. In addition, the interactive effects of HPWS and LMX quality on proactive behavior are mediated by job engagement. The findings provide valuable theoretical and managerial contribution by integrating HRM and leadership research.

HIGH-PERFORMANCE WORK SYSTEMS, ENTREPRENEURIAL ORIENTATION, AND INNOVATION STRATEGY IN DEVELOPING COUNTRIES

Innovation strategy has become an important recent challenge in today’s competitive conditions of developing countries. In this paper, the impact of high-performance work systems (HPWSs) on innovation strategy of knowledge-based enterprises is examined, considering the mediating role of entrepreneurial orientation. The statistical sample of study includes 180 managers and employees of Iranian knowledge-based companies. Data were collected using standard questionnaire, and the structural equation method was used for data analysis. The results showed that HPWSs have a positive and significant impact on innovation strategy of knowledge-based companies and about 75% of the total effect of the HPWS on innovation strategy is explained indirectly by the mediating variable of entrepreneurial orientation.