Critically analyse the effects of high performance work practices on employers and employees.
Critically analyse the effects of high performance work practices on employers and employees. The primary goal of most businesses is to maximize profits for the owners. High performance work practices (HPWPs) are a methodology used by various organizations to maximize workforce potential. HPWP is a combination of various theoretical models working alongside a receptive organizational climate and culture. This analysis will state the merits of HPWPs on employers and scrutinize its shortcoming on employees. The essay has been structured by introducing the concept of HPWPs as defined in available literature along with key findings. Thereafter the relevant theories pertaining to HPWP will be presented. Here the relevancy of the social exchange theory, Expectancy theory, and the labour process theory to HPWPs will be analysed. Subsequently the focus of the essay will be on the benefits of HPWPs to employers followed by an analysis of its negative effects on employees. To conclude this essay I will state that while HPWPs are found to be favourable for organizations from a purely profit centric view, its long term effects are undesirable for both the employer and employee.
According to Razi (2012, p. 80) the basic aim of HPWPs is to encourage employees to be actively involved in the decision making process and increase their knowledge in the hopes of stimulating innovation, flexibility and skill sharing. Harley et al. (2010, p. 741) holds the view that HPWPs are labour management techniques characterized by skill enhancement and motivational factors. However the actual practices of high performance work systems (HPWS) are debatable. It is further stated that instead of trying to cater the organization for each employee’s needs, it is far easier to find the right employee for the organization. Here again the importance of employee involvement in the decision making process is stressed. It is further suggested by Shin et al. (2012, p. 541) that employee
According to Razi (2012, p. 80) the basic aim of HPWPs is to encourage employees to be actively involved in the decision making process and increase their knowledge in the hopes of stimulating innovation, flexibility and skill sharing. Harley et al. (2010, p. 741) holds the view that HPWPs are labour management techniques characterized by skill enhancement and motivational factors. However the actual practices of high performance work systems (HPWS) are debatable. It is further stated that instead of trying to cater the organization for each employee’s needs, it is far easier to find the right employee for the organization. Here again the importance of employee involvement in the decision making process is stressed. It is further suggested by Shin et al. (2012, p. 541) that employee
References: < http://cnc.sagepub.com/content/34/1/7> Wood, S, de Menezes, LM, 2011, ‘High involvement management, high performance work systems and wellbeing’, The International Journal of Human Resource Management, vol