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  1. 1. High Performance Work Systems and Employee Satisfaction Student’s Name: 10/23/2014
  2. 2. High Performance Work Systems and Employee Satisfaction 1 | P a g e Introduction: An important capability of the organization is its ability to make the workers satisfied in respective work. Thus, they were able to achieve a competent Human resource management approach which showed the ease of the employees in the operations. According to Lusthaus (2002) it is critical to develop and instill core values within the members of the organization such as the commitment to organizational mission, accountability for and pride in one’s work, integrity, honesty and commitment to excellence in their work. The company handles the recruiting and hiring process of the employees as such, they are the one who sets guidelines which must be followed by the workers in the course of their employment. The management provides training courses for the trainees to be able to give them practical learning regarding stress management, employee relations, safety processes and performance appraisal of each worker. Character test were also given like unselfishness test and personality examinations to better screen the candidates. Once the workers are hired, they are provided an environment which is easier to work in and avoid animosities within its culture. The working culture becomes positive which made every employees commit their best to do their respective work. Human Resource Management withHPWS High Performance Work System is a method to provide motivational work for the employees. To assure that employees are given enough motivations, certain activities such as holding team building activities and celebrations which let the worker feel that they work together as a single family. This helps in the increased interest of the workers in doing their best in their field of work. Compensation and benefits are also available which makes them be motivated in their work and may increase productivity and competency for the company as a
  3. 3. High Performance Work Systems and Employee Satisfaction 2 | P a g e whole. High performance work systems (HPWS) is used to understand the practices are adopted in order to foster high performance and its implications with the way human resource functions have been outlined with the transformation of the duties or responsibilities of the human resource (Anthony et al 2013). The first implication to the way human resource professionals execute their functions was that their focus was more on the business as they attempt to be of assistance in the major issues face by a business organization. In addition, this implication of the transformation of the human resource practices was geared towards the creation of a partnership between the business and the HR function in the area of creating value or wealth to the organization as HR professionals seek the best interests of its key stakeholders. Another effect to the HR function with the transformation of its practices was its improved relationship with the marketplace or with the customers of the company. In this way, the demands of the functions of the human resource not only focus now on the internal stakeholders, which are the employees and the managers but on the demands of the external stakeholders to include investors and customers. The human resource value proposition has five key elements namely stakeholders, external realities, practices of the human resource, resources of the human resource and the professionals working in the human resource function (Ulrich, 2013). The interests of both stakeholders and external realities determine why the human resource function is important to an organization and why the human resource function needs to focus on the delivery of its services. The practices, resources and professionals of the human resource function serve as the main elements that embody the task of the human resource of an organization. These basic elements represent the criteria for an effective functioning of the human resource. Many companies have attempted to
  4. 4. High Performance Work Systems and Employee Satisfaction 3 | P a g e develop the effectiveness of the human resource function without defining first the value of the task. For instance, companies invest on a wide array of human resource activities to include electronic HR services like online employee services and portals for the belief that they have transformed the human resource arena. Electronic human resource interventions mentioned are only a part of delivering the administrative services of the human resource and is a small factor on the delivery of transforming the human resource function meaning the activity cannot actually add value to shareholders, customers, managers and even to employees. Real human resource transformation requires that outputs and behaviors are changed within an organization and these changes must be able to improve the life of the stakeholders of an organization (Ulrich and Brockbank, 2005). Fundamental transformation of the human resource function must begin with a clear definition of the value of the human resource which means the determination of the recipients of the services of the human resource function and the services that will be receive from the functions of the human resource. Economic Benefits of HPWS Firm adoption of the HPWS can improve operational performance at the work place (Kruse et al 2010). The firms can obtain better performance because of the increased competency of the workers in the end. This can contribute to the company as it will improve their competitiveness in the industry where they operate. Boxall and Macky (2011) points out that HPWS is a logical focus because reforms to create smarter working, as a means of responding to more concentrated competition in globalized manufacturing industries or as a means of building competitive advantage in services, are of vital interest to practitioners and policy makers in the developed
  5. 5. High Performance Work Systems and Employee Satisfaction 4 | P a g e economies in the end. Thus, companies can create more strategies and become more competent in their business. Employees are important aspects of the business and taking care of their needs can assure that the business can perform well enough. Employee Attitudes and Behavior HPWS can be connected with employee attitude and behavior in terms of defining definite organizational culture which will be important. Griffin and Moorhead (2009) defines organizational culture and behavior as the study of human behavior in organizational settings, of the interface between human behavior and organization and of the organization itself. This states that any individual who becomes part of an organization plays part on the shaping of the organizational culture and strategies and their contribution is inevitable in its success. Through the usage of HPWS, the company can alter the culture which can make the organization become more successful in the future. Different aspects are seen to affect the performance of an individual within an organization. Certain employee attitudes and behavior are affected by the HPWS in terms of job challenges, communication, trust, innovation and social cohesion and asserts that employees’ behavior and intentions are partly products of organizational culture. The following aspects show how an individual become more inclined to work because of a motivational system and culture. Job challenges: This refers to the complexity of the job which shapes the behavior of the worker in doing that said task. Thus, if the job is hard and would not bring any development for the individual, naturally he/ she will not be working hard for that certain task and probably would result to a low
  6. 6. High Performance Work Systems and Employee Satisfaction 5 | P a g e productivity with lower quality. Applying HWPS can increase the competency of the individual and find better strategies to make them work properly. Communication: This involves the communication between the management and workers and within the working areas. The communication involves how the employees interact within the organizational environment and may influence their working attitude. A smooth communication through HPWS system between workers and the management may bring about a positive behavior to the workers as they feel that their voices are heard within the company. However, if communication is lacking, negative attitudes may result such as apprehension in work and lack of trust with the management and even with their workers. Trust: This is an essential aspect in any organization culture as when there is confidence between employees and management; a productive output may be a positive consequence. Trust may also result in a open minded environment which enables good feedbacks from the employees and may increase their working behavior within the organization. Innovation: This involves the support of the organization in ensuring that the workers are exploring their capabilities and at the same time developing them. The appropriate support of the management to the employees gives the latter confidence to do his/ her tasks properly and may lead to a productive company as a whole. The HPWS system must be based on the latest technology and must be feasible within the organization in the end.
  7. 7. High Performance Work Systems and Employee Satisfaction 6 | P a g e Social Cohesion: This dimension includes the interrelationship between workers and how each of the employees contributes to a positive and cooperative working environment. Once a positive environment is felt by the workers, there is a growth in confidence among the employees and improve their working performance as a whole. Once the management showed that the workers will be a big part of the organization decision makings, the workers will have the idea of doing well in their job as they contribute greatly for the productivity of the company as a whole. Difference of HPWS and companies that don’t use HPWS The companies that use HPWA are focused on improving their respective performance most specially in certain industries such as manufacturing and service industries. Thus, the managers need to alter their own policies to properly increase their competency in the industry. The use of HPWS is a way to make the companies become productive and also be unique from other firms. Mostly, the structure may be costly and may take a long time to apply, but it will be beneficial in the end. HPWS is best applied when it is planned and is based from research studies done by companies most specifically in manufacturing and service businesses. Thus, planning is not relatively easy, as there are a lot of aspects to be included to ensure that the benefit for the organization will be seen in the end. This can be used by the management of the organization as we studied the flow of operation and the possible tools that can be used by them. The suggestions we provided are the best we can produce. It can be followed by the organization, but the important thing is that we were able to create a study that will help them strengthen their operations as a whole.
  8. 8. High Performance Work Systems and Employee Satisfaction 7 | P a g e COMPILATION OF STATISTICALDIFFERENCE Employee satisfaction from a company that doesn’t use an HPWS Satisfaction for employees in companies that uses HPWS is high. For instance, the companies under manufacturing industries, HPWS system are continuously changed and modified to assure that it meets the demands of the company. A study made showed that a higher level of vertical and horizontal communication increases the job satisfaction of workers significantly in all countries with a higher autonomy in the way a worker can perform his job also has a positive effect on job satisfaction for the workers. The company which does not adopt HPWS faces challenges in terms of the performance of the workers. Constraints come in different approaches such as technical difficulties, operational problems and managerial dilemmas of these companies. These constraints involve technical issues and non-technical issues towards the new system. Technical problems: The technical issues on implementation of the new system are the knowledge of the employees towards it, the present computers that must be adjusted to be used by the company and affecting the present operational methods of the business. The knowledge of the employees on using computer based system is a constraint because if the system is not properly used, it may disrupt its operation. Non-technical issues: this type of problem refers to the attitude of the employees and the management, the resistance of the system and the satisfaction of the customers on the implementation of the new system. The attitude of employees and the management is seen on how they perceive the idea of using a computerized database system to centralize their activities.
  9. 9. High Performance Work Systems and Employee Satisfaction 8 | P a g e The resistance of the employees will also cause a problem as the employees will not be using the system the properly and tends to ignore it advantages. Businesses can consider the idea of the author which is to use HPWS in strategic planning of entrepreneurs. This means using modern tools to make communications within organizations and outside organizations become better. Economic Difference In the course of the understanding the study, HPWS can be beneficial for the organization. The economic importance of the system is focused on the internal approach of every organization which adopted it. It is imperative that certain economic indicators such as the GDP of the country is affected by the way companies operate their business. Conclusion: For companies that adopt HPWS in their organization and companies that does not adopt it, their differences includes that the former are more competent in their operations than the latter. Differences in opinion cannot be avoided, and for a group project to be successful, what is important is how the group will be able to solve the said problem and come up with a good solution towards the substantial result for their business operation in the end. Another notion is that the leaders are important aspects of an organization as they are the one that provides command and motivation to the members to strive for the best in a single direction. Leadership is important for organization because with its proper implementation, the employees can be directed to the goal and this will help in the better implementation of the new system.
  10. 10. High Performance Work Systems and Employee Satisfaction 9 | P a g e References: Boxall, P. & Macky, K. (2009), “Research and theory on high-performance work systems: progressing the highinvolvement stream”, Human Resource Management Journal, Vol 19, no 1, 2009, pages 3–23. Bauer, T. (2004), “High Performance Workplace Practices and Job Satisfaction: Evidence from Europe”, Discussion Paper No. 1265. Anthony, G., Belanger, J, Lapionte,P. & Murray, G. (2013), Work and Employment in the High Performance Workplace, Routledge. Kruse, D., Freeman, B., Blasi, J. (2010), Shared Capitalism at Work: Employee Ownership, Profit and Gain Sharing, and Broad-Based Stock Options, University of Chicago Press. Lusthaus, C. (2002), Organizational Assessment: A Framework for Improving Performance, Inter-American Development Bank, International Development Research Centre. Ulrich, D. & Brockbank, W. (2013), The HR Value Proposition, Harvard Business Press.